China in 2024: A Market Overview
Value China
Xiaohongshu (RedNote) Global Partner - Digital Agency for the Chinese Market
2024 has been pivotal for China's economy, marked by significant challenges and a series of measures to foster recovery and growth. This article explores the key sectors of China’s economy and the strategies implemented to address difficulties, focusing on market opportunities and bilateral relations with Italy.
Economic growth and stimulus policies
Despite ambitious goals, China fell short of its 5% growth target for 2024. The slowdown was mainly attributed to the real estate sector crisis, weak domestic demand, and a volatile global environment. The Chinese government adopted a more aggressive fiscal and monetary approach to tackle these issues.
Among the key measures, Beijing announced an increase in the budget deficit to 4% of GDP, the highest level ever recorded, with a rise of about 1.3 trillion yuan funded through off-budget special bonds. These interventions aim to stimulate domestic demand, mitigate the real estate sector crisis, and counter potential new tariffs on Chinese imports announced by the United States.
Additionally, further monetary policy easing is expected, including interest rate cuts and liquidity injections into the financial system to boost investments and consumption.
Furniture and Design
The furniture market in China represents one of the most promising areas, with an estimated value of $84.89 billion in 2024 and a CAGR of 6.7% through 2031. Growth is driven by demand for stylish, functional, and sustainable furniture for both residential and commercial use.
Key trends include the fusion of traditional and modern styles, smart technologies integration, and increasing attention to sustainability. However, the sector faces challenges such as intense competition, rising raw material costs, and logistical complexities, requiring innovative strategies to remain competitive.
Food & Beverage
The Chinese Food & Beverage market has experienced significant growth, with an overall value of about RMB 11.71 trillion in 2023 and a projected CAGR of 7.38% through 2029. China has also become the world’s largest food importer, with a growing demand for high-quality and sustainable products.
Noteworthy are the wine import figures, showing an increase in volume and value compared to the previous year. France, Australia, Chile, Italy, and the United States are among the top suppliers. For international companies, the main challenge remains local competition, but the demand for innovation provides fertile ground for expanding opportunities.
Tourism
China’s tourism sector is undergoing significant recovery, supported by strategic policies such as extending visa waivers for citizens of 38 countries, including Italy. In Q3 2024, foreign visitors reached 8.19 million, up 48.8% year-on-year.
The rising demand for international travel and authentic cultural experiences is reshaping China’s tourism landscape. The market is expected to reach pre-pandemic levels by 2025, solidifying China’s position as one of the world’s leading tourism hubs.
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Cosmetics
China's cosmetics market continues to expand, with strong demand for premium, organic, and sustainable products. The skincare segment is expected to reach a value of $128.61 billion by 2032, with a CAGR of 11.75%.
Younger generations in Tier 1 and Tier 2 cities are driving this trend, favouring brands that combine luxury and sustainability. The use of digital platforms and innovative distribution strategies offers a competitive advantage for brands aiming to establish themselves in this dynamic market.
Italy-China relations
2024 marked a pivotal year for Italy-China relations, characterized by significant events that have redefined the landscape of bilateral cooperation.
Italy's decision not to renew the memorandum on the Belt and Road Initiative (BRI) marked a turning point but did not compromise the dialogue between the two countries. Throughout the year, both nations reaffirmed their commitment to strengthening the Comprehensive Strategic Partnership, signed in 2004, with a focus on areas such as research, innovation, culture, and trade. This relaunch has offered a new framework for bilateral relations, in line with the discussions held in September during Foreign Minister Antonio Tajani's visit to Beijing.
As a testament to the commitment to maintaining strong relations with China, President Sergio Mattarella paid an official visit, formalizing the relaunch of bilateral relations at the institutional level and reiterating the importance of dialogue and cooperation.
In 2025, the Double Tax Agreement (DTA) between Italy and China will come into effect, marking a significant milestone in the two countries’ economic relations. The agreement is designed to reduce tax burdens, increase investments, streamline bureaucracy, and create a more business-friendly environment.
The primary goals of the DTA are to eliminate double taxation on income, prevent tax evasion, and provide a more favorable framework for Italian businesses operating in China.
The ratification of the DTA signifies a strong commitment from both countries to enhance economic cooperation. This agreement lays the foundation for deeper trade and cultural exchanges, strengthening bilateral relations and opening doors to new opportunities in the years to come.
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Since 2019, we have supported the digital transformation of hundreds of companies operating in the Chinese market, adapting their digital approach to China. As a consultancy, research and marketing agency, we respond to all digital needs aimed at the Chinese market, differentiating ourselves through multi-sector expertise.
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