It is estimated that within 30 years it will need another planet earth to satisfy China’s ever-growing appetite for raw materials.
The living standard of the average citizen has changed rapidly. Due to the rapid pace of urbanization in China, the annual disposable income per capita of urban households is climbing from 1, 701 RMB in 1991 to 17,175 RMB in 2009. This is equivalent to a 10 times increase. As for rural households, similar trend can also be spotted - a 5.1 raise in annual disposable income per capita to 5,153 RMB in 2009.
This statistic has numerous indications with regard to China’s development and situation. First and foremost, it is noted that there is still a large income disparity between the urban and rural households. Using the latest statistics, annual disposable income per capita of urban households is 74% higher than rural households.
However, China’s government has been constantly putting in great effort in minimizing the income gap. This can be witnessed in the rising annual disposable income per capita for rural households. But, these efforts are “countered” by rising income of urban households as well. Subsequently, it can also be observed the growing income and purchasing power of the population in both rural and urban households indicating the improvement in people’s quality of lives over time.
- North America-based companies - resounding 100% targeted China, while Brazil, USA and Mexico were targeted by 50%. India was a source mentioned by 40%.
- Europe-based companies - China was also first, named by 88%. India followed at 72%. Italy was third at 68%.
- Asia-Pacific companies -China came out again on top at 71%, India was second at 50%
China will continue to be the leader in terms of sourcing activities for many years to come. China is still a good reliable place to buy in at least next 10-15 years. However, the rising costs, carbon footprint and other issues may cause companies to step up purchases in other countries over time.