China’s integration into the world economy has passed a watershed – its growth over the past decade has accounted for two-thirds of Asia’s overall reduction of poverty, and its GDP is projected to exceed Germany’s by 2006. China’s deepening trade relationship with Japan, Korea and the ASEAN nations has positioned the country as the region’s new growth driver.
How China balances foreign and domestic concerns will determine the degree of confidence Chinese companies will be able to project globally. The government continues to exercise its role as regulator of an increasingly liberalized and open economy. But its past and current success has created a different global context which is surfacing new challenges for foreign and domestic companies that are looking to shape the Chinese market.