China: A New Normal, a New Mobility
For the past 3 decades, China has experienced an unprecedented economic boom; with an average economic growth of about 10% over the past 30 years, the country has successfully secured themselves as one of the top world economies.
As of 2015 however a “new normal” is surfacing, led by the Chinese government, characterized by restructuring, consolidation, and a push towards innovation.
This distancing from their traditional model of input and investment has led to a decline in the growth trajectory, and more modest GDP targets as the focus switches to economic, social, and environmental objectives. While this is not necessarily dissuading outside investment in the Chinese economy, it is certainly changing how business are planning for the future. Heidrick and Struggles conducted a report in which 118 multinational executives were surveyed in regards to the management of their Chinese operations: “most [MNCs] remain optimistic and expect to see good profitability from their Chinese operations – but they also anticipate the rate of business growth will continue to slow”. Companies are “proceeding with caution”, still recognizing the value in Chinese business, not weary of the change that hangs heavy in the air.
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