The New China You Need To Know

Written by: Danielle Palmer

Categories: Alltech Symposium
May 21
The New China You Need To Know

Dr. Mark Lyons painted a fascinating picture of a country at a crossroads during his China presentation at the Alltech Symposium Business and Technology session – a country that other countries may choose to view as “a peril or a partner.”

Dr. Mark Lyons is vice president of corporate affairs of Alltech and has been based out of Beijing since 2012 as part of the company’s “China Now” initiative. The initiative serves to deepen its support of the industry through research, education and strategic initiatives in the world’s most populous nation.

Lyons’ talk placed the Chinese market in the context of today. He noted that China boasts the second largest economy in the world and is a market that highly impacts global business.

“China is here to stay,” he said. Lyons explained that the Chinese believe they are the leaders of the 21st century, replacing superpowers such as the United States.

Lyons noted six “megatrends” in China driving some of the changes there today:

  1. Urbanization: People are moving in mass amounts into cities. Young people plan to stay and enjoy the city life.
  2. Increase in manufacturing scale – The manufacturing base has increased vastly. “Made in China” will mean something very different in the future to countries like the United States.
  3. The Rise of Chinese Consumers – An additional 200 million people will enter the Chinese middle class by 2026.
  4. More Money – China has more than $15 trillion in bank deposits, growing by $2 trillion per year.
  5. Brainpower Behemoth – Education spending has doubled since 1998.
  6. Chinese Internet – China boasts more users than any other country (550 million) penetration is comparatively low, but it’s exploding.

Lyons noted that with all these trends come challenges, including a greater push for environmental protection and “green growth,” changing demographics including an aging population, limited arable land, polluted water and air, shadow banking, food security and a young urban population disillusioned by rising costs and job scarcity despite high education levels.

Despite the challenges, China is certainly “here to stay,” Lyons said. “For Alltech, we see China as a major partner. Today, it’s our third largest day it will be our largest market.”

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