17 May 2021
Despite facing the challenges of the coronavirus pandemic, now for over a year, China still has several investment opportunities for foreign-owned investors. The manufacturing sector has been a solid backbone for China’s economic growth, helped by low-cost labour. According to several reports, China is making a towards from a manufacturing-heavy economic model to a services-led one. Agriculture, construction and manufacturing and the service sector have been the major contributors to the country’s gross domestic product (GDP).
What was noted was that the services sector’s contribution was increasing over the years, contributing 83.5% of its GDP in 2019. In attempt to recover for the coronavirus pandemic, Beijing is playing a critical role with a few sectors undergoing reforms.
Beijing has 93 unicorn companies registered there by the end of 2020, topping any other tier city in China. Apple, Tesla, Merck and Mercedes-Benz are just a few foreign science and technology services companies that established research and development (R&D) centres in Beijing. A science and technology (S&T) innovation centre: the Beijing Free Trade Zone is set to be created in Beijing after being approved by the Chinese government last year.
Moreover, the digital economy and trade sector is a prominent one in China, opening up market access in industries ranging from elderly care institutions to virtual private networks (VPNs) in 2019. China’s drive for innovation-based development is expected to be fulfilled by the construction of the comprehensive demonstration zone. In turn, this will boost China’s services sector and digital economy.