Central & East Asia
Key Emerging Markets

China, Mongolia

Major Industries

Oil, Natural Gas, Steel, Copper, Construction, Uranium, Agriculture

History

As the world's most populous country and the world's second-largest economy, China has witnessed a formidable history of impressive political, economic, and societal developments since the establishment of the People's Republic in 1949. Since Xi Jinping came to power in 2013, the main driving themes of his administration include economic reform to boost market forces and lead the nation into a consumer-based economy rather than a manufacturing factory for the world as well as an anti-corruption campaign that aims to clean up China's government.  

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Stability of Region

China’s phenomenal growth over the past decade has secured its grip on internal stability although the nation has seen occasional outbursts of ethnic violence in the Tibet and Xinjiang regions. As an emergent economic powerhouse, China has been successful in building its international presence through foreign diplomacy and investments. Increased aggression in its foreign policy has also exposed the nation to mounting geopolitical tensions in the East and the South China Sea, Middle East, and Africa. Additionally, China's government still holds a firm stance against free speech and human rights as they actively silence political dissenters and tightly limit social media. China has also limited access to foreign news by restricting rebroadcasting, blocking websites using an extensive firewall system. 

Economy

China and East Asia has been one of the fastest-growing regions in the world with steady economic growth that is driven by the service sector and firm domestic demand, as growth has been mainly driven by exports and foreign direct investments for the past decade. China's 14th Five-year plan for the years 2021 to 2025 provides an economic framework that includes a deeper commitment to promoting "dual circulation" and investment in strategic sectors included in Made in China 2025 industrial policy. While the fundamental US-China tension will remain rooted, China will continue to develop internally to reduce exposure to the growing uncertain external market.

Outlook

While the global economy recovers from pandemic, China is likely to see a less ambitious single-digit economic growth at around 5% for the next five years. For Mongolia, its economy will continue to be heavily reliant on the mining and infrastructure industry, and recent government support for foreign investments suggests further economic development.

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