While global economies are on a standstill, only China has managed to get back on its feet. In fact, looking at its economic activities, the sudden growth spurt of its SMEs post lockdown that showed a spike of approximately 32% growth mainly due to the resulting “Revenge Spending”, making it one of the countries to look out for.
Besides the growth of most of the Small and Medium-Sized Enterprises (SMEs) in China at about 32% due to revenge spending, with the economy looking set to be back on its feet in a relatively short period of time as also reflected in the retail footfall gaining momentum and traction, factories and the manufacturing sectors too are showing forth a great spike and production in sales due to the pent-up demand after the lockdown caused by Covid-19. In fact, the spending trend has been recording an increasing growth trajectory just within China itself.
So, why should one capitalise and seize the opportunity to be part of China’s next wave of growth spurt? To me, the golden opportunity can be further analysed in the following reasons to “Chase the Yuan”!
Five top reasons to chase the Yuan:
1. China Establishes Its Free Trade Zone In Malaysia
Jack Ma’s first foray out of China into logistics and distribution has already materialised in Malaysia. Cainiao, which is his e-commercial and logistics hub which is situated in the Kuala Lumpur International Airport (KLIA) Aeropolis, will bring about a high volume of knowledge workers from China who may seek accommodation via renting or buying properties in Malaysia. This will create more jobs. Therefore, unemployment will be mitigated downwards. This is as more job opportunities will lead to lower unemployment rate.