Written by Yuhua Zhang, GEI Associate
Following up on my last post about China PMI, China PMIs show improving economic activities during the past several months. Especially, China Service PMI has kept a steady growth rate since 2015 and rose to 53.5 by the end of May, which indicates continuous high level of economic expansion in Chinese service industries. Whereas China is still in the midst of an economic reform period, the large market doubtless brings excellent business opportunities to US service industries.
Correspondingly, depending on gradually developed international network and high quality of service industries, US service enterprises are expected to create more employment opportunities by expanding overseas markets.
Therefore, in view of the current economic conditions that China is experiencing during the economic reform period, Chinese market would doubtless catch more and more interest of US service companies. (On the one hand, China has put great emphasis on developing service trade; on the other hand, Chinese market present an ideal foundation of market demand for service industries.)
There is no doubt that exploiting Chinese market is a win-win to both US companies and Chinese consumers. For US enterprises, it is an effective solution to promote domestic employment. Moreover, Chinese service market also exist various of potential demand and business opportunities.
For example, with the higher life quality and further boost of internationalization, more and more Chinese in different age levels are expected to learn authentic American English, thus they are more interested in finding a US local English language education institution instead of domestic language school.
In addition, more and more Chinese students desire to further their study in US, while it’s quite hard for them to know more information about US well-known universities besides school rankings, which may lead them miss better study program in US colleges.
To sum up, Chinese service market exist a lot of potential profitable business opportunities for long-term cooperation.
In the meanwhile, for China, it is a good chance to enrich and develop Chinese service industries by introducing advanced service modes and ideas, as well as to stimulate domestic enterprises to promote service quality.
Furthermore, it also creates better environment for Chinese consumers to study American culture and pursue better life quality.