China Country Profile

China has experienced notable growth over the past two decades, with many select opportunities for investors yet to be explored. Here are some key features foreign businesses will want to know as well as a SWOT Analysis of China. To better understand if you’re ready to expand or enter the market, click here to take our Readiness Check.

A Market of Unparalleled Scale and Potential:

• The World’s Second-largest Population: 1.4 billion consumers boast as the world’s largest consumer market, a burgeoning middle class, projected to exceed 500 million by 2025, is driving a wave of consumption upgrading.
• Sustained Economic Growth: The world’s second largest and fastest-growing economy over the last two decades.
• Rapid Urbanisation: With an urbanisation rate of 67% in 2024, expected to reach 75% by 2035, China’s urban transformation fuels demand across infrastructure, real estate, and consumer sectors.

A World-Class Manufacturing Hub and Supply Chain Ecosystem:

• Global Manufacturing Powerhouse: China accounts for nearly 30% of global manufacturing value-added, offering a mature supply chain and competitive production costs.
• Thriving Industry Clusters: Regions like the Yangtze River Delta and Pearl River Delta have fostered dynamic industry clusters. For instance, the Yangtze River Delta’s electronics and information technology cluster accounts for over one-third of the national total, providing unparalleled efficiency and integration.
• Rising Innovation Powerhouse: China is rapidly emerging as a global leader in innovation, investing over 3.5 trillion RMB in R&D in 2024, ranking second globally. Breakthroughs in AI, 5G, and new energy present exciting opportunities for forward-thinking investors.

A Continuously Improving Business Environment:

• Proactive Government Support: The Chinese government has implemented a series of policies to attract foreign investment, evidenced by the 6.3% year-on-year increase in utilised foreign capital, exceeding CNY 1.2 trillion in 2022.
• Expanding Free Trade Zones: China’s 21 pilot free trade zones, accounting for over 20% of national utilised foreign capital in 2024, offer preferential policies and streamlined procedures for foreign businesses.
• Strengthening IP Protection: China is committed to intellectual property protection, granting a world-leading 798,000 invention patents in 2022, fostering a secure environment for innovation-driven enterprises.

A Digital Economy Leading the Future:

• Largest Internet User Base: With 1.1 billion internet users and a 76% penetration rate, China provides a fertile ground for the digital economy growth.
• Mobile Payment Revolution: China’s mobile payment ecosystem is the most advanced globally, processing over 1 trillion transactions exceeding CNY 450 trillion in 2024, unlocking immense potential in e-commerce and fintech.
• AI Transforming Industries: AI applications are rapidly transforming industries across China, with the core AI industry exceeding CNY 600 billion in 2024, driving efficiency and innovation.

Additional Advantages:

• World-Class Infrastructure: China boasts a highly developed infrastructure network, including the world’s largest high-speed rail system, exceeding 45,000 kilometers by the end of 2024.
• Abundant Talent Pool: China’s vast talent pool, with 11 million university graduates in 2024, offers a competitive edge in terms of both quality and cost.
• Stable Social Environment: China’s long-standing social stability provides a secure and predictable environment for businesses to thrive.

Key Opportunities by industry:

• Manufacturing: New Materials, Smart Manufacturing, Clean Manufacturing, High-End Manufacturing
• High-Tech Industries: Artificial Intelligence, 5G, Semiconductors, Biopharmaceuticals
• Green Economy: New Energy, Environmental Protection Technologies, Energy Conservation, New Energy Vehicles
• Consumption Upgrade: High-end Consumption Goods, Healthcare, Cultural and Entertainment
• Modern Services: Fintech, Logistics, Education