Industries are a major component of a country’s economy. In addition to creating job opportunities, industries are also important to consider when one decides to establish a business. However, while China is economically strong as a whole, some industries are more profitable and offer better job and business opportunities than others. Three of the most profitable industries in China are the real estate industry, pharmaceutical industry, and internet services industry.
1. Real Estate
Real estate is defined as physical property and any other tangible upgrades that are associated with that property, and it also refers to the process of buying, selling, and producing such properties. As of 2021, the real estate industry has generated a revenue of $1,957,1 billion. Many billionaires in China invest in the real estate industry because of how easy it is to make money in the industry. Through 2019 and the subsequent five years, the real estate industry was expected to grow by 10.3% every year up to $1.96 trillion. China’s large population also plays an instrumental role in the increased demand for residential buildings and homes. In addition to this, low-interest rates and increased income make the purchase of new homes even more easier and appealing. Ultimately, the aforementioned factors lead to much investment in the real estate industry, and therefore, the industry becomes highly profitable.
2. Pharmaceutical Industry
The pharmaceutical industry is related to the production and sale of medicinal drugs. These medicinal drugs do not require much money to be produced, but they can reap high profits because their prices can be marked up to an extent where the prices are far higher than the cost it took to produce them. As such, the pharmaceutical industry generated a profit of over $45 million in 2019. Additionally, China had the second-largest pharmaceutical industry in the world in 2020. While the pharmaceutical industry of China is highly fragmented due to the existence of around 5,000 manufacturers, this makes the industry even more advantageous to invest in because the research and development costs are much lower due to the costs being spread out amongst the various manufacturers. For the most part, pharmaceutical companies are involved with the production of therapeutic medicines, traditional Chinese medicine, and generic drugs; over 90% of drugs consumed in China are generic ones.
3. Internet Services Industry
As of 2021, the internet services industry has generated a revenue of $803.1 billion. Through 2020 and the subsequent five years, the internet services industry is also predicted to generate 34.9% more revenue every year. Because COVID-19 reduced the ability to have face-face interactions, online learning started to grow rapidly. Consequently, this also led to a huge demand for internet services in China; the first quarter of 2020 saw the greatest demand for internet services. In addition to online learning, streaming services themselves were highly popularized during the era of COVID-19 since people were not commuting outside due to the risk of contracting the virus. Thus, this also explains why streaming services such as iqiyi.com have 176.9 viewers and are expanding rapidly during this era.
All in all, the real estate industry, pharmaceutical industry, and internet services industry are some of the most profitable industries in China. These industries play a big role in China’s economic success due to their profitability, as they are responsible for creating the greatest amount of high-paying job opportunities and entrepreneurial opportunities for the establishment of businesses. While each of these industries has its own advantages and disadvantages, one can invest in any of them for the potential to reap high rewards. However, given the current situation with the increasing amount of digitalization that has occurred especially in the COVID-19 era, the internet services industry would probably be anyone’s best investment at this point in time.
Sources:
https://www.chinawhisper.com/top-15-most-profitable-industries-in-china/
https://www.ibisworld.com/china/industry-trends/biggest-industries-by-revenue/
https://nhglobalpartners.com/business-investment-opportunities-china/
https://www.thebalance.com/real-estate-what-it-is-and-how-it-works-3305882
https://www.businesswire.com/news/home/20200210005340/en/Growth-Insights-on-Chinas-Pharmaceutical-Industry-2020-to-2025—Key-Market-Trends-Supporting-the-Expansion-of-the-Chinese-Pharmaceutical-Industry—ResearchAndMarkets.com
https://www.statista.com/topics/5001/pharmaceutical-industry-in-china/
https://www.statista.com/statistics/276038/china-leading-online-video-platforms/
this article was fantastic! i learned so many new things about china industry and learned that the top three most successful industries such as the real estate industry, pharmaceutical industry, and internet services industry! its fascinating to learn that these are the top industries that generate the most profit! i believe these industries that generate the most profit are similar to those in america as well because of how popular they are in both countries and how they are all necessities!
This article was very well written. I learned that the 3 most profitble industries in China are real estate, the pharmaceutical industry, internet services industry. I did not expect these to be the top 3 and this was very surprising to me.
China is very similar to America in profitable industries, and the pharmaceutical industry is very big in America. I wonder if America will grow an internet services industry soon. The industrialization of China most likely caused a shift from agricultural industries to tech and production.
very interesting article. I would no think that real estate would make the most money, I know that people in china buy a lot of property and it goes up. But I would think making a company or investing in stocks would make them more money. I also did not think Pharmaceutical Industry would be number two because they charge less then America so I thought that there margins would be smaller .
These are very interesting facts about China. They make me wonder about the potential future dominance between markets in the US and China and make me wonder about the international competition it serves. They also make me wonder about how China can live up to this hype and create more technology to advance and enhance their markets around the world.
Amazing article! I liked how detailed and complex it was. You obviously did your research on the subject. It makes me want to know more about the pharmaceutical industry in China. Thank you and keep up the good work!
This article is very interesting and well written. I did not know that real estate was one of the most profitable industries in China, The U.S.A is very similar to China since they share similar profitable industries, and like in America, the pharmaceutical industry is a big industry in China.
The top 3 most profitable industries in china are real estate, pharmaceutical industry, and internet services industry. This makes sense since it is very needed in china and are very essential to everyday life. This article is very interesting and shows what people need for their daily lives.
Very nice article! I did not know that the pharmaceutical industry was so good! It was interesting to see that china makes so much money from this.
This article is very informative and very well written. And I like the number of sources used to know that you really did your research. I now learned that Pharmaceutical Industry is very profitable in China.
I think it was very interesting and cool to know what industry’s make the most profit in China.