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- CHINA & THE WORLD - News - Business

Deep layers truly define nation's market advantage

China Daily
| December 1, 2025
2025-12-01

As global economic headwinds reshape supply chains and consumer behavior, scale has emerged as one of the rarest and most consequential metrics in the world economy.

Few places offer it with the depth, resilience and speed of China, where a vast and fast-upgrading consumer base continues to anchor long-term business cooperation between businesses from China and the United States.

When market watchers speak of China's "super-large-scale market", they often begin with the headline figure of 1.4 billion people. But population size is only the surface. What truly defines China's market advantage is its profound internal layering — its breadth of demand, diversity of consumer groups, rapid product iteration and the structural sophistication behind shifting consumer behavior.

During my interviews with executives of multinational corporations, quite a few described China's economy as a deep and resilient market ecosystem, shaped by rising incomes, rapid urbanization, advanced industrial capabilities and a digital backbone unmatched in scale. One of the clearest examples of this depth is China's expanding middle-income group, now the world's largest.

This group not only consumes more, but consumes better, driving sustained upgrading across numerous sectors including education, healthcare, tourism, food, household appliances, automobiles and wellness.

At the same time, China's younger generation — digital-savvy, brand-conscious and highly receptive to innovation — is accelerating product cycles and creating entirely new consumption scenarios, from smart mobility to immersive entertainment. People of this generation are not simply buying more goods; they are reshaping industries through greater demands on quality, sustainability and personalization.

The implication is clear. The growth room remains vast, and the consumption curve is far from reaching its ceiling. This structural strength has made China an increasingly attractive market for multinational corporations — not only as a destination for products, but also as a source of innovation, supply chain resilience and global growth.

In sectors such as new energy vehicles, life sciences, industrial automation, food and agriculture, consumer electronics and advanced materials, US companies such as ADM, Tesla, Honeywell and Nike are continuously expanding local operations, upgrading manufacturing capacity and deepening their engagement with Chinese partners.

Cooperation opportunities between Chinese and US businesses are visible across major trade events. At the 138th Canton Fair, known officially as the China Import and Export Fair, US buyers continued to seek high-quality Chinese consumer goods, smart appliances and industrial equipment.

At the eighth China International Import Expo, many US exhibitors — from agricultural suppliers and healthcare innovators to industrial technology leaders — brought their latest products and announced expanded commitments to the China market. These platforms have repeatedly demonstrated that commercial cooperation remains not only viable but vibrant, driven by real demand on both sides.

For Chinese companies, the US remains one of the world's most important consumer markets and a critical arena for technological cooperation and brand building. Whether exporting electronics, machinery, home appliances, textiles, agricultural goods or green technologies, Chinese firms continue to view the US market as one that needs reliability, innovation and long-term engagement.

Even in a period of trade frictions, pragmatic cooperation between Chinese manufacturers and US distributors, retailers and industrial customers has proved resilient.

For US companies, China offers a level of supply chain completeness, manufacturing efficiency and consumer responsiveness that is difficult to replicate elsewhere. Many US firms have expanded their China operations not only to serve local consumers but also as a base for supplying Asia-Pacific and global markets.

Beyond production, many US businesses are also investing in research centers, test facilities and innovation hubs in China, where feedback loops are faster and end users are more willing to try new concepts. This allows companies to iterate products quickly and improve competitiveness globally.

China's rapidly growing demand for green, intelligent and high-value-added products is also reshaping cooperation opportunities in areas such as sustainable materials, biomanufacturing, logistics, agricultural technology and digital transformation — all sectors where China and the US share substantial complementary advantages.

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