MILAN, Italy, April 30 -- China's economy this year will be driven by more sustainable growth, providing new opportunities for foreign firms, the Milan-based Italy China Foundation said in a recent report.
The report, released earlier this month, highlighted that China's service sector in 2013 was at more than 46 percent of the country's economy, exceeding the share of manufacturing. Hence China's target of expanding service industries to 47 percent by 2015 could be reached earlier, it estimated.
The increased weight of the service sector (outsourcing, insurance industry, banking, e-commerce and supply chain management) "will form the basis of a model of development that is more sustainable," the report said.
"Opportunities are not necessarily to be found in China but can come from China," Italy China Foundation President Cesare Romiti said. "Italy must create the conditions for seizing these opportunities that include higher capital inflows from China and more numerous Chinese students and tourists," he stressed.
According to the report, "most foreign companies are generating higher profits in China than in the rest of the world." The health care industry, food industry, clean technologies and mobility infrastructures are some of the sectors that will show the highest growth rates this year, it said.
An estimated increase in business costs will push firms to review their strategies in China increasing investments in technological innovation, facilities modernization, mechanization, computerization and updating of business models, according to the report.
The Italy China Foundation estimated that the Chinese economy will continue to grow in 2014 at around 7.5 percent, as expected by the government, on the path of more sustainable development.
"China will slow down its growth in the short term, but the reforms announced during the Third Plenary Session of 18th CPC Central Committee will serve as a driving force for an increasingly sustainable economy in the medium-long term," the report said.
Tourism plays an important role in providing new business opportunities, the report also added. Around 500,000 Chinese nationals visited Italy last year spending 914 euros (1,264 U.S. dollars) each on average and nearly 700,000 are expected for 2014, it noted.