With over 1.35 billion citizens, China (official name: the People’s Republic of China) is the most populous country in the world, and the second largest by land area.
Rising costs have dented China’s traditional competitiveness in the low-cost manufacturing sector. In recent years, price sensitive segments of this sector, especially garments and footwear, have begun to migrate to lower cost locations such as Bangladesh, Cambodia, and Vietnam. In spite of this trend, China continues to be a competitive supplier of a wide range of inexpensive manufactured items, although its position is not as dominant as it once was.
China’s high rates of sustained economic growth and its rapidly expanded middle class, especially in urban areas, has spawned significant demand for high-end consumer products. China is expected to account for roughly 20% of global luxury goods consumption by 2015, and its middle class is projected to be as 700 million people (or 45% of the population) by 2020.
The US government has identified the following sectors as holding particular promise for export to China: