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Business / Economy

Transforming China creates new opportunities

(Xinhua) Updated: 2016-03-12 15:12

BEIJING - While some may be worried that the slowing Chinese economy will drag down global growth, ongoing economic restructuring has been welcomed by foreign companies and individuals.

One prime area for foreign companies is film. Animation "Zootopia" now dominates China's cinemas, with box office sales topping 400 million yuan ($61.5 million) since its debut on March 4, according to market tracker Entgroup.

Ticket sales of eight Hollywood blockbusters in China exceeded $100 million each in 2015 to reach $1.4 billion in total, surging by 84 percent from the previous year.

US films are warmly received by Chinese moviegoers, who are increasingly willing and financially able to spend on entertainment and leisure.

China's per capita disposable income grew 8.9 percent year on year in 2015, according to the National Bureau of Statistics. The Engel's coefficient, which measures food expenditure as a proportion of total household spending, dropped for the third consecutive year to 30.6 percent.

The Walt Disney Company, which produced "ZooTopia," is putting the final touches on the Shanghai Disney Resort, the company's first theme park on the Chinese mainland, which is expected to attract 10 million visits each year after it opens in June.

China's better-off and increasingly picky consumers are also eager to buy high-end products, particularly for health.

The country's urbanites spend 7.5 percent of their daily expenditure on healthcare, second only to food, according to the National Health and Family Planning Commission.

Thirst for safer materials helped US chemical company Eastman consolidate its footing in China through a deal with home-appliance manufacturer Midea last month.

Midea is now licensed to use "Tritan," a brand of plastic without the chemical bisphenol A, banned in food packaging and babies' bottles in many developed countries, yet commonly found in the developing world.

"The agreement will help Eastman establish itself in China," said a joint statement.

Last year, end-user consumption contributed 66.4 percent to China's GDP. Consumers are demanding new products and services, while overlooking enterprises churning out steel, cement and low-end products.

Dissatisfied with cheap domestic brands, Chinese tourists spent at least 1.2 trillion yuan overseas in 2015 on products ranging from rice cookers to smart toilet seats, according to the Ministry of Commerce (MOC).

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