Globalization of the Chinese consumer market

Pushed by the wave of globalization, China is moving away from an economic system in which national markets are distinct entities, isolated from foreign markets by barriers of distance, time, culture and government intervention. Increasingly its national market is converging into an integral part of the global marketplace . One characteristic of this convergence is the increasing participation of foreign product and service providers in China.

China's accession to the WTO accelerates the pace of market liberalization. As a result, international competition will internalize, exerting great pressure on domestic market players and the pattern of competition is expected to change. Internationalization of domestic competition is bound to take place. Foreseeable results of the globalization are increased efficiency and enhanced consumer benefits.

China's WTO entry also increases the possibilities of integrating the Chinese consumer market with the outside world. China is now regarded as a leading world manufacturing centre and Chinese producers are supplying not only the domestic market but also foreign markets. WTO rules are supposed to clear the obstacles that Chinese businesses used to have before China's accession. In this context, the consumer market is truly a global concept.