Investing in China: Opportunities and Risks in the Future


Investment environment in China is changing due to the drastic change in world economic environment and the intrinsic evolution inside the Chinese economy. Although China is facing a series challenges for its further growth, a soft landing of the economy is expected. To meet the external and internal challenges and to overcome the constraints for further growth, China has to transit the growth pattern which will generate two areas of new demand, expansion of new industries for green economy and for resources saving goals and promoting the purchasing power of low income group. Fast urbanization and moving to the west are the other two major development opportunities. Risks and uncertainties in the coming time could come mainly from the slowdown of external demand growth, the appreciation of Chinese currency, the labor cost increase, domestic competition and product mimicking, resource supply constraints, and trade disputes.

Share and Cite:

Liu, Y. (2012) Investing in China: Opportunities and Risks in the Future. Journal of Financial Risk Management, 1, 1-6. doi: 10.4236/jfrm.2012.11001.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] China Statistical Yearbook, various years.
[2] China’s Statistical Communiqué (2012).
[3] Economist Intelligence Unit (2010).
[4] Fung, K. C. (2002). Foreign direct investment in China: Policy, trend and impact. Working Paper. Santa Cruz, CA: University of Califor-nia.
[5] Lu, H. (2012). Two thirds of Chinese cities face water shortages. Shanghaiist News.
[6] Tan, K. Y. (2003). China development report, seminar report. Singa-pore City: Nanyang Technological University.
[7] United Nations Department of Labor (2010).
[8] US-China Business Council (2011). China business environment sur- vey results.
[9] Vanhonacker, W. R. (2004). The China casebook. Singapore City: McGraw Hill Education.

Copyright © 2024 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.