The Chinese economy will continue to adjust slowly and more sustainable growth is to be expected.
That still adds an economy of the size of Switzerland to the Chinese economy each year.
International markets will start to get more used to this and reactions will be less headline-grabbing.
Expect Supply-side Reform to be China’s newest buzz-phrase in 2016. It still isn’t clear exactly what it will mean, but fundamentally China wants to create an environment for its private sector and state-owned enterprises to create more wealth and drive its economy forward.
Linked with supply-side reform, Made in China 2025 will become a more visible initiative in 2016 to ensure that China’s manufacturing moves up the value chain, avoiding a squeeze at one end on price and on quality at the other.
Belt and Road
Potentially the most impactful business initiative of our generation. How effective China can be in realising this could define international trade for decades to come. Much internal discussion will take place this year – expect lots of big political visits by Chinese leaders to countries along the routes.
Capital in China will look for secure and stable homes around the world, and the UK will remain a leading destination. In 2016, expect to see more private companies investing abroad.