Conclusion: The New Reality

Abstract

China is a market that few companies can choose to ignore. Its entrenched role as a manufacturing hub, combined with its emergence as a major consumer market makes it a prime target for businesses that are desperate for growth in a slowing global economy. It is no longer the case that China needs foreign capital, knowhow, and technology to accelerate its industrial development, and China no longer needs to offer tax breaks and other incentives to lure foreign firms in. It wants to develop and strengthen its domestic industries, develop national champions to serve its home market, and retain more of the value produced by its often low-paid workers, so that they can live Xi Jinping’s “Chinese Dream.”¹