China at a Crossrods

Deloitte --- China is at a crossroads. Having become the world’s factory and the most important destination for foreign investment, China’s economy has boomed. Not only is China the preferred location for procuring goods, but its domestic market has achieved critical mass, driving global companies to increasingly target Chinese consumers. China is the place to be.

Yet there is a problematic side to China’s success. China’s growth has driven up global prices of commodities such as petroleum, leading to rising inflation in the West and the need for higher interest rates. Rising Chinese exports have driven down global prices of manufactured goods, wreaking havoc in product and labor markets in both emerging and developed markets. And China’s exchange rate policy has inhibited adjustment of global economic imbalances leading to substantial exchange rate misalignment globally.

Main contents:

·China's impact on the rest of the world

·seven risks of doing business in China

·China remains an opportunity