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China’s 12th Five-Year Plan - Part 2

Posted by Tyler Kretzschmar
Tyler Kretzschmar
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on Tuesday, 07 May 2013
in Business in China

This is Part 2 of a 3-part series on the 12th Five-Year Plan.

Part 1 simplifies and summarises the plan, and Parts 2 & 3 will discuss the importance of the Plan for those interested in the Chinese market.

How has the 12th Five-Year Plan developed since its implementation?

The Five-Year Plan is not set in stone. As a drafted document to oversee social and economic development over the course of five years for the most populous country in the world, a certain level of coordination with local governments through supplementary and supporting legislation, as well as flexibility with the Plan are paramount to its success. As such, some aspects of the Plan drafted in 2011 are today, in 2013, slightly different after re-evaluation.

China’s 12th Five-Year Plan – Part 1

Posted by Tyler Kretzschmar
Tyler Kretzschmar
Tyler Kretzschmar has not set their biography yet
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on Saturday, 27 April 2013
in Business in China

This is Part 1 of a 3-part series on the 12th Five-Year Plan.

Part 1 will simplify and summarise the plan, and Parts 2 & 3 will discuss the importance of the Plan for those interested in the Chinese market.

This is an abridged version; for more information on the background and specifics of the 12th Five-Year Plan click here: chinas-12th-five-year-plan-part-1.pdf


Background & Overview

A term synonymous with China’s continuous development strategies, the 12th and current Five-Year Plan breaks from tradition and acts as a milestone in Chinese policy-making;  a shift in the path that China has been on for more than three decades. First approved on March 14, 2011, the partly philosophical and partly strategic programme encompasses a mix of goals, benchmarks and principles for the Chinese top and local government bodies to follow regarding the social and economic future of the country, between 2011 and 2015.

The Philosophy behind the Plan

China may have escaped some of the more drastic consequences of the global financial crisis that affected markets around the world in 2008, however given the globalised nature of the world’s markets, a Chinese economy that is based heavily on exports would undoubtedly suffer if foreign countries stopped importing goods. Economic stability is one of the key goals for Chinese policy-makers, something that cannot be achieved when GDP relies so heavily on demand outside of one’s own borders. In 2011, the US, Europe and Japan accounted for 48 percent of China’s exports, highlighting the need for a GDP base that is less reliant on countries whose economies are struggling.  

Capitalising on China’s growing middle class – estimated to reach 700 million by 2020 – constitutes using a different model than one of growth solely focused on exports and investments. Thus, looking at private domestic consumption as a new primary market feature is imperative in building a stable and well-rounded Chinese economy.

What are the key economic aspects of the 12th Five-Year Plan?

Compared to previous Plans, the 12th envisions more broad based developments in the economy as opposed to simply attaining specific levels of growth. Looking at the future of the country, the Plan’s overarching themes seek to promote sustainable growth and development for a well rounded economy and an improvement in the overall quality of life for Chinese citizens.

China Software Industry

Posted by Administrator
Administrator
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on Monday, 13 December 2010
in Business in China

China's software industry has seen a rapid growth this year. According to figures from January to August 2010 revenue went up by 29,8% to CNY828.6 billion. The growth rate was 8.8 percentage points higher than in the same period last year. The industry will likely to grow much higher coming years and therefore remain a highly interesting industry for foreign companies trying to penetrate into the Chinese market.

Revenue by region and sector

By region, 87.5% of the revenue was earned in the eastern areas of China, among which includes Shanghai, Guangdong and Shenzhen.

The western areas, including Guangxi and Xinjiang, were responsible for 7.7% of China's software revenue and only 4.8% of the revenue was earned in the middle areas of china, including Henan, Hubei and Hunan.