Returning migrants: the Chinese economy’s next great hope?

30 April 2018

China’s economy has grown rapidly over the last decade, due to the migration of rural workers to the cities. Now, however, a reverse migration of entrepreneurs may bring new venues for economic growth. This new demographic - the returning migrant entrepreneur or fan xiang chuang ye – is predicted to bring growth opportunities for rural areas of China and rebalance the region’s economy. The resulting economic growth can be attributed to increasing access to the internet and newly built infrastructure, making it easier to connect with rural and distant customers through e-commerce. The reverse migration also has other benefits such as bringing back skills and creating more jobs and opportunities in less-developed areas. The new innovative business models being implemented in rural China can even compete with developing economies in Southeast Asia. Despite some returning migrants failing to launch upon their return due to the lack of funding, red tape barriers and increasing competition in e-commerce, these rural ventures are expected to grow further in the future as the demand for agricultural products sold online continues to rise.

Read the full article on the South China Morning Post website.

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