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소아쌤

S. Korean firms need to shift strategy in China: report

By Yonhap

Published : Jan. 28, 2018 - 15:36

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South Korean companies need to shift their strategies in China as Beijing strives to boost domestic spending by attracting foreign investment and offering higher wages, a local think tank said Sunday.

China has long been a manufacturing base for multinational companies due to low labor costs and growing domestic consumption of their products. Recently, the central government has pushed for plans to drive up consumption by luring foreign capital into major industries and raising workers' wages, Hyundai Research Institute said in a report. 

Wangfujing, one of the most famous shopping streets of Beijing, China. (Yonhap) Wangfujing, one of the most famous shopping streets of Beijing, China. (Yonhap)



When advancing to China, local companies need to view the neighboring market as a base for value-added products and come up with customized services to gain a bigger share in the world's most populous country, the HRI report said. 

In 2016, China's domestic consumption ratio to overall household disposable income was at 39 percent, lower than the average of 60.5 percent for 21 member countries of the Organization for Economic Co-operation and Development, it said. (Yonhap)

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