Consumption and innovation continue to drive China's investment

World
Europe

Chinese President Xi Jinping said during the recently concluded 19th CPC Party Congress that the so-called "principal contradiction" facing the Chinese society is now between unbalanced and inadequate development and people's ever-growing need for a better life.

The newly defined principal contradiction is said to reflect the current trend in China – a rising consumer class with more and more money.

People are now demanding healthier lifestyles, and that helped start-ups like CoClean secure 20 million yuan from its A-round of funding this year.

CoClean specializes in making air purifiers that release streams of ions. The new technology is more effective at capturing impurities in the air including PM 2.5 particles.

VCG Photo

The CEO and founder of CoClean, Zhao Fei said that the market for air purifiers is growing at 30-50 percent annually and expected to break 100 million yuan soon. In addition to air purifiers, other high-end consumer products involving technologies such as artificial intelligence, Internet and big data are also attracting investors' attention.

According to Guo Libo, the president of China Venture Institute, trillions of yuan worth investment opportunities are now centered around high-tech consumer products as China is moving up the manufacturing value chain.

Consumption has become one major engine for China' s economy, accounting for around 30 percent of its GDP. Since the 18th Party Congress, China has been opening up and making it easier for new businesses – resulting in the creation of some 20 million new firms over the past five years. Consumption and innovation are said to continue to drive investment in China.