Next time you indulge in a good hearty serving of ravioli or fettuccine, spare a thought for the Chinese. Tracing the origins of Italian pastas will likely find you in China in the 13th century, following the routes of Marco Polo who brought back tales of dumplings and noodles from his epic adventures in the Far East.
Similarly, the European colonists who amassed incredible wealth from faraway lands discovered by compasses of Chinese design; planned, mapped and recorded on paper of Chinese roots; and conquered with the help of weapons resulting from China’s invention of gunpowder.
After a short hiatus, China is again making its mark on one of the most significant innovations of modern times – the mobile phone. The cradle of the smartphone isn’t China, but the other side of the world in Manhattan, where it was made by a Motorola employee named Martin Cooper. That was 1973 and it took a few decades before China really entered the mix.
Firstly, Motorola is now owned by China’s Lenovo, a move echoed across many industries as Chinese companies acquire patents, technology and brands to expand their global aspirations.
More significantly, Chinese consumers have become the largest consumers of smartphones on the planet – both in volume and individual usage, which sees Chinese consumers leading the world in adoption of mobile services such as mobile commerce and payments, fuelling innovation by Chinese companies and influencing product development from brands globally – just look at large screen iPhones.
Thirdly, many of China’s manufacturers have migrated from cheaply manufacturing devices for foreign brands, to utilising their engineering capabilities to produce their own brands, some with world-first innovations. Much like the Italians did with noodles and dumplings, Chinese are bringing their own form of mobiles to the world. China’s brands now account for almost 1 in every 2 smartphones sold globally, and are on track to be in the hands, pockets and purses of the vast majority of cellphone users around the world within a few years.
Mobile phones are just one example of how China is pushing itself higher up the wealth curve, closer to where it used to be. In the 1820s, China accounted for 32.9% of the world’s economy. Today it is 15% of the global economy but it contributes around 30% of its growth. 200 years ago China’s GDP was 124% of Europe’s GDP whereas it’s less than two thirds today. China’s population was just 58% higher than Europe’s at the time, today it has 86% more people.
Although it will be a long time, if ever, before China accounts for a third of the world’s economy again, it has lofty ambitions and is on track to get much closer. As a result, Chinese are by far the most likely to believe their country is heading in the right direction, and are skipping along with the highest consumer confidence they’ve had in years.
Whilst Chinese consumers are much more likely to buy a Chinese-branded smartphone, or even a Chinese jacket than ever before, many imported wares remain aspirational. Foreign movies – a barometer of how Chinese view the West – still dominate the box office. Although Chinese invented the mechanical clock around 725 A.D., they’d still shell out significantly more for a timepiece that is authentically Swiss. Even the rate of growth for Italian pasta and other food imports continues to be enviable, particularly those that are marketed well. Agencies such as China Skinny can ensure that you are on track with that. Go to Page 2 to see this week’s China news and highlights.