China started to be defined as the “factory of the world” a few years ago as a result of its mass employment at low wages. The country still maintains a leading role in manufacturing activities, but now has to share this position with other growing nations.
What this competition really changed was the perception of China as an end-market: despite several regions having average personal income considerably lower than Western countries, the buying power of Chinese citizens dramatically increased during the last years. In a country that counts with a population of more than 1.35 billion people, even a slight change in the macroeconomic situation can influence the decision of a big company seeking to enter the national market. The automotive industry is not an exception Continue reading