The economy slowed down in the second half of 2018 due to the Sino-US trade war, a stagnant property market and an uninspiring stock market. However, given the current economic climate, there are still bright spots in specific industries that will spur growth in 2019.
The government is supporting drugs produced by local pharmaceutical companies. These firms are hiring aggressively across various functions to meet the demand from favourable policy changes.
The internet industry will continue to drive the China economy with consumers using a combination of offline and online channels to shop. Hence, companies will continue to invest and expand their digital and e-commerce departments. “New retailing” will continue to grow while “new manufacturing” will be the next trend wave.
Financial institutions are more careful after investing heavily in internet companies previously. Many companies have folded while other investments have yet to yield returns. As financial institutions are transforming into Fintech, digital payment and cybersecurity positions will be in demand.
We see the current slowdown in the automotive and manufacturing industries as temporary. Automotive companies may be producing less due to excess inventory but they continue to invest in the R&D of future car innovations like internet car, electric vehicle, assisted and autonomous driving.
General industry manufacturers are moving towards digital factory automation and high tech manufacturing in smart devices, IoT and AI. The government is supporting the “Made in China 2025” initiative with the construction of 26 new mega semiconductor fabs over the next 3 years.
Overall the China economy will continue to grow moderately in 2019 with growth shifting from the traditional manufacturing industries to the internet and services industries. With the structural move, new jobs will be created and candidates with high adaptability, continuous learning mentality and cross-functional skills will be in demand.