Value through Innovation24 April 2014

The Chinese business environment - Economic boom

The rapid rise of Lujiazui district in Shanghai is the epitome of China’s development in recent decades.

And such dramatic changes are happening all over the country. China’s GDP growth has been among the world’s highest since it adopted the reform and openingup policy in 1979.

In the second quarter of 2011, China overtook Japan to become the world’s second largest economy. In 2010, GDP grew by 10.3 % compared to 2009 and is expected to grow by 10 % in 2011. In 2009, China’s export value amounted to 1,201.6 billion RMB, making it the world’s No 1 exporter.

In spite of its great economic progress, China’s GDP per capital is still low and improving the standard of living and stimulating domestic consumption has become a key task in the government’s new 5-year plan.

China’s population
China, the world’s most populous country, saw its population rise from 1,312 million in 2005 to 1,354 million in 2010.

By 2050, the over 85s are forecast to make up 10 % of the population, with more than 30 % of the population aged 60 or older.

China’s still rising population, plus the growing elderly share of population, will create additional pressure on healthcare. This, however, represents a significant opportunity for the pharmaceutical industry.