Surging Economic Activity of China in the U.S. Economy

Published Date : Apr 17, 2015

The popularity of the Apple Watch in China and the U.S. shows that the importance of China is increasing in the global retail industry. In fact, the performance of the China retail economy is at par with several leading American retailers. This was declared by Tompkins International, which is a consulting firm. A senior official who heads the Asia Pacific operations and practice of this supply chain company also stated that high focus on China could eventually lead to greater profitability, better employment scenario and growth of the company in U.S. 

Ongoing trends and recent developments indicate that over the upcoming decade, economic activity of China in the U.S. will increase dramatically. This will be marked by robust demand and consumption trends from China. As per latest industry reports, there are almost 1.2 billion mobile handsets that are active in nature. This statistic is more than the overall population of the U.S. by four times. The Chinese consumer base for American companies that manufacture affordable luxury goods is close to 800 million. There is a large section of the Chinese population that purchases U.S. based goods on a rather large scale. 

Sources have also stated that in the fourth quarter, one fourth of Apple’s earnings were from the segment that comprised Chinese consumers. The iPhone 6 was the main product that increased the market attractiveness. The company had predicted that its product offering would appeal to the nouveau riche class in China. It was also observed that the ongoing performance of the sales figure in the U.S. did match the past predictions about the same.