China: 2010 Economic Outlook

Date 04 January 2010

At the end of 2009, China’s 8% economic growth target for the year is well within reach. Although the economic recession defined the economy the past year and will continue to do so into 2010, the Chinese market has displayed remarkable recovery thus far. The outlook for the upcoming year looks good as well, with recent UN reports predicting 8.8% growth for the year.  

In terms of governmental projects, clean energy dominates the nation’s plans in infrastructure building, technological development and production, and even exports, as China is fast becoming a leader in this sector. The Ministry of Industry and Information Technology reported other several key areas of focus for 2010 to include: information networks, advanced manufacturing, production services, and new materials.

Another major governmental goal will involve an expansion of the domestic consumer market. Policies will involve rural stimulation projects and support of certain industries such as the automobile industry. With the expected increase in consumer demand, increases in imports will also be encouraged. In light of the recession, the government is also implementing measures to aid SMEs and to help recovery in the Chinese export industry.

Furthermore, the next year will likely see an increase in outward investment as Chinese investors take advantage of their relative strength in the global economy. The government will also strongly promote innovations in science and technology as key in the nation’s development. In particular, the state will continue to encourage foreign investment in these areas and others in order to stabilize and further expand the Chinese economy.