“It doesn’t matter if a cat is black or white, so long as it catches mice.”
–Deng Xiaoping
In this first article from the China series, I want to share with you some amazing facts and figures about China and its economy. They will help you better understand the phenomenal growth and the related opportunities and threats.
#1 NUMBER: 25 – 25 – 25
The Chinese government aims to have 25 cities with 25 million inhabitants by 2025.
#2 NUMBER: 100?
If you included the GDP per capita in the equation, the Chinese have one of the highest life expectancy rates in the world.
#3 Number: 437 million
That’s the amount of Chinese that will be 60 or above by 2050 – about 31 percent of the population.
#4 Number: 79%
According to the American Chamber of Commerce, 79 percent of all foreign companies in China make money. The number is higher than ever.
#5 Number: 1 billion
Everyone is investing in China. 10 years ago, you would have a red carpet treatment in Shanghai with a 1 million Euro investment. Today, you need at least 1 billion to get noticed.
#6 Number: 65 million
That’s the number of vacant apartments today in China. That’s a serious real estate bubble. By the way: want to know how they calculated the number? The electricity power bureau counted all apartments not using any electricity in a six month time period.
#7 Number: 13%+
Chinese labour is not as cheap (anymore) as you might think. Labor costs inflate at a staggering rate of 13 percent per year. The upside is the increase in local buying power, reducing the export dependency. Finding buyers remains a major challenge, especially when the Western economy would continue to stagnate or even reduce.
#8 Number: 13 years
During the cultural revolution (1959 – 1972), education came to a standstill.
#9 Number: 45+
Very few people in the talent pool are over 45 years old due to the educational standstill I mentioned in the previous point. It’s one of the reasons why you see so many young executives.
#10 Number: 118 – 100
It’s not so easy to find your ideal wife in China, with a ratio of 1,18 men for each woman.
#11 Number: 1900
China was the largest economical player for the last 5000 years. They only lost their number 1 position at the start of the 20th century. In other words, they know how to lead; they have been doing it forever. No need to ask yourself if they would be able to do it again. The only questions that’s left is when they take over economical world leadership.
#12 Number: 300 – 400 MIO
The estimated amount of Chinese there would be more on this planet if they would not have created the ‘1 child’-policy.
