Consumption and innovation will be the two main drivers of growth in China in the years to come after the economic giant has moved into the next phase of development.
Jin Ulrich, JP Morgan Chase's CEO and deputy chairman in the Asia-Pacific region, believes China's consumption will grow from $4 billion over the next three years. to $6 billion, which is approximately the consumption of the German market.
In terms of innovation, the Chinese government not only encourages technology companies to go abroad, but also urges established industries in the country to use innovative business concepts. Taking this into account, many companies export a large part of their offices in Southeast and North Asia where pay and tax rates are lower.
China's economic growth has largely exceeded expectations this year, helped by global export recovery. This has increased corporate profits and allowed the country to curb financial leverage, which was seen as a major source of concern among investors.
What does trader mean "consumption and innovation will be the two main drivers of growth?"
This means that in the next two years China's technology sector will continue to boom, and retailers will mark new records. Given this, it is good to look at the country's technology giants and retailer stocks.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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