GDP

China’s Multifactor Productivity Growth Drops As a Percentage of GDP

The economy of China is #1 in the world, measured

by nominal GDP and #1 largest by purchasing

power parity. The country is classified as a high

source of women entrepreneurs, one of the

G-20 major economies, and Multi National Companies

(MNCs) that want to do business inside China;

small to mid-size WOBs in the professional services

industry can provide a competitive edge.

CHINA

Labor Force: 804 Million Labor Force by occupation:

1) Agriculture: 33.6% 2) Industry: 30.3% 3) Services: 36.1%

Chinaishometo213billionairesasof2015,makingthecountrythe

2ndlargestpoolofbillionaires,rightbehind

theUnitedStates.

GDPbysector:

Agriculture:8.9%Industry:42.7%Services:48.4%

The minimum wage

ranges from US$1.35 in Heilongjiang to US$2.55

in Beijing.

China’s major stock exchange, the Shanghai Stock Exchange,

had a market capitalization of $3.5 trillion as of February 2016 and is the 5th largest stock exchange in the world according to the World

Federation of Exchanges.

China’s Top Exports

Electronic Equipment

Machines, Engines, Pumps

Furniture, Lighting, Signs

Knit or Crochet Clothing

Clothing (Not Knit or Crochet)

Medical Equipment

Plastics Iron or Steel Products

Vehicles Footwear

China’s Top Industries

Manufacturing Professional Services Retail Trade Food and Beverage

Technology Wholesale Trade Business Support Human Resources

Retail Trade is one of the largest growing areas and opportunities for Women-owned businesses in China.

• Women-owned businesses in China are hungry to grow, have same or higher levels of education than men, and are proficient with their use of technology.

• Most women-owned businesses require a break with the win of a major contract or financing before expanding..

• The largest opportunities for women businesses are in small to mid-size professional services that do not require large capital investments.

• Future government incentives could make women-owned businesses more competitive vis-à-vis their male counterparts.

• Women make up a large portion of the consumer base in China, and 70% of women participate in the labor force.

• Despite its recent slow-down, China’s economy is expanding greatly and there is more focus on internal consumption.

Factor Analysis

Political • China’s constitution protects the rights of women. • Mao Zedong started many initiatives to get women to work outside the home

and become active members of the communist economy.

Economic

• China has 70% women labor participation and women entrepreneurs on average have more education than their male counterparts.

• The Chinese economy has been driven largely by export manufacturing and large scale state-owned enterprises. A cheap exchange rate has kept Chinese products competitive internationally and imports relative more expensive.

• In the past two years there has been a marked down turn in China’s economy and after the great financial crisis, man small women-owned businesses went out of business due to a sharp decrease in demand.

• World Bank, Ali Baba and other NGOs are working to expand women’s access to capital, which will greatly help small and mid-sized women-owned businesses.

• Overall, women are an active part of the economy and need opportunity and access to become an even larger part of the Chinese economy.

Societal

• Women have extremely high literacy rates and are actually more likely to have college degrees.

• Women proportionally hold a very low percentage of leadership positions in government as well as the corporate world.

• Sex discrimination and denial to advancement and opportunity due to societal norms and perceptions are the largest barrier for women.

Technology

• Access and use of technology is on a great trajectory, and China is rapidly closing the gap with Western countries in terms of research facilities, science and a robust IT backbone.

• Although use of internet and ecommerce is rapidly rising, there are some state restrictions and monitoring on internet.

Legal

• China is only one of 18 countries in which there are no legal differences between men and women.

• A new law against domestic violence was passed in 2013. • Women are entitled to three months of maternity leave. • Chinese law prohibits discrimination based on gender, although the

enforcement of the laws through courts is relatively weak.

• Competition is increasing in all major industries as China’s economy continues to expand.

• Barriers to entry are generally being lowered as women-owned businesses are gaining greater access to capital.

• Although substitutes are available in each market, and a lack of concentration leads to increased competition, buyer power is generally flat.

• Retail Trade is a growing and promising industry for women-owned businesses.

• Women-owned businesses can compete favorably as long as they have access to buyers.

China’s Business Landscape by Industry

WEConnect International Activity in China (2015)

Top Industries Represented

Manufacturing Professional Services Retail Trade Food and Beverage Wholesale Trade Technology