PESTLE Analysis of China 2012: Lucintel Forecasts Robust Growth for Chinese Economy despite Eurozone Crisis


   January 1 2013

China’s economy has experienced a strong annual GDP growth rate of 10% during the last five years. It is expected to continue its growth momentum and surpass the US in GDP by 2020. A high rate of savings, abundant and increasingly skilled labor, healthy export business, and potential urban growth is likely to drive the Chinese economy to sustained growthduring 2012-2017.

Lucintel, a leading global Management Consulting and market research firm, performed a Political, Economical, Sociological, Technological, Legal, and Environmental (PESTLE) analysis of China and presents its findings in “PESTLE Analysis of China 2012.”

As indicated in the study,foreign direct investment (FDI) has proven to be the driving force for China’s ongoing economic growth. The large and expanding market of China is attracting leading multinationals, encouraging local innovators, allowing domestic manufacturers to produce low-cost products, and permitting formation of industry clusters and business groups. Successive governments’ focus on reform processes and simplification of China’s tax law and FDI procedures makes China an ideal destination for investment and growth. The report also indicates that large-scale production diminishes production costs, leading to less-expensive exports. China’s strong presence as an export platform supports income and employment growth in the economy.

The Chinese economy is plagued by challenges from theEuropean economic crisis thatcould adversely affect its growth rate, regional disparity, and growing environmental concerns.Rapid economic development and accelerated domestic demand in China, however, offers significant opportunities for growth.

Lucintel’s study outlines China’s need to address several significant challenges and risks, such as its aging society, rising income inequality, large and growing environmental impact of its industrialization, and stubborn external imbalances for its transformation into a leader of the global economy.

The report also provides a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis and an examination of thepast, present, and future economic policies of China. 

For a detailed table of contents and pricing information on this timely, insightful report, contact Lucintel at +1-972-636-5056 or via email at helpdesk@lucintel.com. Lucintel provides cutting-edge decision support services that facilitate critical decisions with greater speed, insight, and cost efficiency. To learn more, visit www.lucintel.com.

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