Many things can influence the behavior, including spending behavior, of a country’s consumers. One is how confident they are feeling about economic conditions in their country.
What has consumer confidence been like lately in China? Recent data points to it having been on the increase and having reached pretty high levels.
Reportedly, in July of this year, the consumer confidence index for China was 114.6. In this index, a score of 100 is the dividing line between optimism and pessimism, with scores above 100 indicating optimism.
The July number continued a steady trend China has been seeing for about a year of increases in consumer confidence. It is also the highest level the index has hit in some time. You have to go back a little over 20 years to see as high of an index score in China as this July showed.
Things such as a strengthening job market and income increases are being pointed to as factors in the growing consumer confidence in China.
One wonders what kind of consumer conduct will come out of the high levels of consumer confidence China is experiencing lately, and what impacts this will have on how attractive U.S. businesses view China as a market to enter.
Many different things could attract a U.S. company to entering the Chinese market. Whatever a business’ reasons and motivations for wanting to extend its business operations into China, it can be important for it to properly prepare for its expansion into China. Complex hurdles can come up in relation to doing business in China. Preparation can play a key role in helping put a company in a strong position to safeguard its key business goals for its China operations when such hurdles come up. U.S. businesses can seek out help with preparing for entering the Chinese market from experienced international law attorneys.
Source: Bloomberg, “China’s Consumers Haven’t Been This Confident in Two Decades,” Sept. 11, 2017