Venture Capital in China

If you have been following the recent market data coming out of China, you probably do not want to invest there at the moment. As a reader of this website, you probably are aware of this. I am probably right to assume this. The fact is, however, that no matter how bad the china stockmarket data might be, most of the world’s major markets are falling as well. No matter how you might want to look at things, China is still growing quickly. Granted, 7% is lower than anything that we have experienced in a long time, but the reality is that it this is a growth rate that any other economy could only dream of at the moment. Most developed economies are struggling to get more than 2%, if anything at all, as we see a significant global slowdown, over 7 years into the recession.

China is Still Worth Investing In

China still promises some of the better prospects around. You can still be optimistic about the Middle Kingdom. It still looks are though venture capital funding will be a record year for China. To date, nearly USD 16 billion has been invested in Chinese companies. This is over 90% of the USD 17 billion which was last year’s total. Deals by corporate investors are still rising.

The Chinese Economy is Evolving

In recent years, China has become the world’s workshop. Its manufacturing economy still dominates the world markets. China has a largely export based economy. As the Chinese are becoming wealthier, they are moving away from manufacturing. Although it will play a big part or the economy, as the country continues to sell to the world, it will start seeing what it can do for itself. The Chinese are becoming consumers. As a result, Chinese companies are developing to serve their own consumers. This means that all sorts of new markets and opportunities are coming up. Manufacturing is slowing, but other parts of the economy are growing, and will grow faster. The new Chinese economy will reveal new and unimaginable opportunities on an unprecedented scale.