06/09/2010
Manufacturing in China has grown, increasing confidence in the economy across the world and boosting the price of shares in both London and New York.
According to The Telegraph, China's official manufacturing purchasing managers' index grew by 0.5 when compared with July's figures. The news was backed up by research from Markit and HSBC which states that manufacturing last month grew from 49.4 to 51.9.
"China's latest PMIs provide tentative evidence that the economic slowdown is bottoming out, albeit with the pace of growth relatively week," explained Mark Williams, senior China economist at Capital Economics.
Any business with a finger on pulse should be considering exporting to China, because Britain will benefit when the Chinese economy continues to expand. With news that China is expected to keep on growing, it could even be a good time for a startups who want to test the market. This can be funded through sales finance, business loans or angel investing.
As reported by The Guardian last month, China has just overtaken Japan as the world's second-largest economy. Thanks to the free market reforms made by Deng Xiaoping over three decades ago, China is well on its way to becoming an economic superpower, which presents plenty of business opportunities.
"Clearly it was inevitable, it was just a question of when it would happen - just as it is pretty inevitable in the long run that it will be bigger than the US as well, because it has four times the population" explained John Hawksworth, chief economist at PricewaterhouseCoopers.
Laura Nineham