The McKinsey.com website predicts that Internet-based businesses will continue to blossom. In more down-to earth industries, steel, cement, and coal producers are going to realize that their future is shrinking.
More effective regulations on output volumes or pollution will soon strongly reduce their output. Excess capital from state-owned companies is being transferred by dividends to state pension funds.
E-sports will reign
Soccer will not attract mind-blowing investment in 2018. Soccer entrepreneurs are getting to understand that buying a soccer team is easy – however, running it successfully isn’t. Contrary to that, e-sports are now getting big.
There are more than 1,000 professional e-sport players in China. Twenty of them earn more than $1 million in competition prize money. Add the income from sponsors, and you see a well-paying job. Other revenue streams in this field are tournaments and live streaming. Millions of players are eager to follow the best, and revenues seem to be growing by more than 25% every year.
New policies to be expected
There are also new leaders who are willing and ready to implement new policies. In the last six months, many new leaders were appointed. President Xi will likely encourage them to implement new policies, which will then result in economic and social changes.
If the implementation of what President Xi wants is too quick or ambitious, it may be more detrimental than the inaction that could be observed last year.
-jk-