China continued its bullish growth rate by posting
another above 10.3% GDP growth rate in 2006, reaching
a total of USD 2720 billion that year. GDP per capita
hit a record USD 2069 in the same year, providing
further evidence of the growth potential of the Chinese
market. This growth continued despite the many attempts
by the central government to cool down the economy
after pressure from the international community. Average
GDP growth rate of the rest of the world economy was
only about 3.3% on average during the same period.
Overall, it suggest a booming time for China with
living standards rising as evidenced by the proliferation
of consumer durables, especially among the urban population.
China had also elevate itself to become the world's
fourth largest economy and third largest trader.
Over the years, Chinese
economy growth transition brings about improvement
in Chinese people’s standard of living and upgrades
consumption spending. According to experts from China
Machinery Industry Federation, car begun to enter
into families when the country’s GDP per-capita reaches
US$1,000; private car purchase will become common
when the figure reaches US$3,000. Such example are
big cities such as Beijing and Guangzhou.
Furthermore,
upgrades in consumer spending promotes fast growing
industries such as electronic telecommunications,
auto and housing as the main driving forces of China.
In addition, it develops service sector rapidly and
the elevation of the level of service industry will
be an evitable trend. Such revolution will bring about
changes in China’s business economy as investors move
along with China’s economic development.
