Rebalancing of the economy to more domestic consumption necessary

• Governmental measures to cool down the economy will slow growth to 9% in 2011 and 8.7% next year.
   
• In order to combat inflation (5% in 2011), monetary policy tightening will continue.
   
• Increasing risks in the financial sector due to banks´ exposure to local government loans and to the overheated property market.
   
• Lower margins for Chinese exporters, and the steel/metals, food, textiles and shipping industry face challenges.
   
• Businesses involved in new energy, pharmaceutical, and infrastructure will continue to benefit from government support.

Real GDP growth (%)

Source: EIU / IMF

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 General Information

Capital - Beijing
Government type - Communist state
Currency - Yuan (CNY)
                    also reffered to as
                    renminbi (RNB)
Population - 1.34 billion
Status - Lower middle income country
 (GDP/capita: US-$ 5,017 in 2011)
 
Main import sources (2010)

• Japan - 12.7% 
• South Korea  - 9.9%
• Taiwan - 8.3%
• USA  - 7.3%
• Germany - 5.3%

Main export markets (2010)

• USA - 18%
• Hong Kong - 13.8% 
• Japan - 7.7%
• South Korea - 4.4%
• Germany - 4.3%

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Date June 2011