Chinese Manufacturing Industry to Grow at CAGR of 19.7%
Prior to reforms, the manufacturing industry in China was stagnant and dominated by the country’s socialist system. During the 1990s, large-scale privatizations reduced the market share of the state-owned enterprises and increased the market share of the private sector. From a virtually stagnant economy, China is now the world’s biggest producer of concrete, steel, ships and textiles, and has the world’s largest automobile market, Technavio reports.
In spite of the need, competition from other low-cost destinations hinders the growth of this market. However, increased foreign direct investment in the region is expected to boost the market.
A key factor contributing to expected market growth is the open economic policy of the Chinese government. The manufacturing industry in China has also been witnessing an increased focus on infrastructure, championed by the government. However, competition from other lower cost destinations, such as India, could challenge the growth of this market.
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