China’s Economy is Not Slowing for Businesses – Commercial & Financial Due Diligence

Dear Friends, Partners and Readers,

The Chinese New Year is about to begin. As described in our previous analysis we are confident that China is taking a turn for the best in addressing the fundamental issues and risks necessary to sustain its development.

A number of media have suggested that the current restructuring will be made at the cost of fast economic growth, but we are experiencing instead an acceleration of business results for international companies here in China. On the eve of Chinese New Year, we felt that it was timely to review the widely discussed growth and “slowdown” figures of China’s economy in order to understand their meaning for our businesses.

While it is true that China’s real GDP growth is not any more in the double digit range and that it is likely to decrease from 7.8% in 2014 to 7.2% in 2015, GDP growth, as a macro-economic measure, does not actually capture China’s business potential for foreign enterprises.