Doing Business in China

In the beginning of 2009,Morgan Stanley cut China 2009 GDP growth forecast to 5.5 percent.They said the downgrade reflects slower global growth as well as the shock impact of a hard landing in the fourth quarter 2008,which has weakened business and household confidence.

On the contrary,after the first half of the year,Morgan Stanley raised its forecast for China's GDP growth to between 7% and 8%.Asia Chairman Stephen Roach said.He also warned that China's economic growth would fall back to a level between 5.5% and 7% percent in 2010 due to the export slump caused by the global economic recession.The Chinese government implemented an RMB 4 trillion stimulus package and implemented plans to boost ten industries to rejuvenate the economy.

Goldman Sachs also raised its China growth forecast to 8.3 percent for 2009 and 10.9 percent for 2010,citing strong expansion in both fixed-asset and private sector investment.

Neilson released its first half 2009 consumer confidence index,showed that China's consumer confidence index remained 89,while the global index plummeted to 84.In addition,the survey showed that 65% of Chinese consumers believe that China's economy is not recession.

The Shanghai Composite Index has gained about 45% percent this year.Shenzhen Composite Index has soared 60%.

China's stable economic business environment is attracting more international buyers.A few days ago,reporters from the second Asia's largest Consumer Electronics Show Sinoces organizing committee,said five times international buyers than last year will attend the exhibition.Including the United States DBL,Wal-mart,DESA,United Kingdom Hymall, Thailand Lotus, Carrefour of France,and so on.