Grant Agreement Number: 689325 Project acronym: SPACE2ID Project full title: Space Clusters International Industrial Diversification Deliverable 4.2 International Space2ID targets Organisation name of lead participant for this deliverable: Corallia Special Public Version Project co-funded by COSME, the EU programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises Dissemination level PU Public PP Restricted to other programme participants (including the Commission Services) RE Restricted to a group specified by the consortium (including the Commission Services) CO Confidential, only for members of the consortium (including the Commission Services) x 1 ANALYSIS OF GLOBAL MARKETS This report is part of the project SPACE2ID which has received funding from the European Union’s COSME Programme (2014-2020) Building on top of the initial input of the MELCA clusters regarding potential target countries and markets, both the Space and the MELCA clusters of the consortium jointly identified the following list of countries with interest for the internationalisation plan of the clusters’ members: Latin America: Chile, Colombia, Peru, Brazil, Mexico, Argentina South-East Asia: Indonesia, Singapore, Malaysia, Thailand, Philippines Africa: Nigeria, Morocco, South Africa, Kenya, Algeria, Congo East Asia: Taiwan, Hong Kong, China, Japan, South Korea Oceania: Australia, New Zealand Middle East: United Arab Emirates, Iran, Turkey, Egypt, Saudi Arabia Other: Canada, USA, India, Russia, Pakistan Of these 34 countries, the cluster management teams decided in a plenary meeting to focus on the follow- ing 15 countries for further analysis. East Asia: China, Taiwan, Hong Kong Middle East: United Arab Emirates, Iran North America: Canada, USA Latin America: Colombia, Chile South-East Asia: Singapore, Indonesia Africa: Morocco, South Africa, Nigeria Oceania: Australia The purpose of the analysis hereafter is to have enough information for the selection of the final list of countries on which SPACE4GLOBE will focus its internationalisation activities in the following 3 years. For each and every country, the information presented is about: Geography, Topography, Population distribution, Climate, Natural hazards, Environmental issues Economic situation and macroeconomic panorama Space Sector MELCA related information Expression of interest (from all the MELCA clusters using a 3-stars system) This report is part of the project SPACE2ID which has received funding from the European Union’s COSME Programme (2014-2020) 1.1 EAST ASIA 1.1.1 China Surface Area 9,596,960 sq. km (4) Unemploy- 4% (2016) ment Population 1,373,541,278 (2016 est.) (1) Land Use 54.7% Agricultural, 22.3% Forest (2011 est.) Population Growth 0.43% (2016 est.) Urbanisation 55.6% urban population (2015) Rate Language Standard Chinese or Mandarin GDP $19.39 trillion (2015 est.) (official; Putonghua), Yue (Can- Biggest Cities Shanghai, Beijing (capital), Chongqing, Guang- tonese), Wu (Shanghainese), dong, Tianjin, Shenzhen Minbei (Fuzhou), Minnan (Hok- kien-Taiwanese), Xiang, Gan, Hakka dialects Religion Buddhist 18.2%, folk religion 21.9%, unaffiliated 52.2% Literacy 96.4% Geography Geography - note: world's fourth largest country (after Russia, Canada, and US) and largest country situated entirely in Asia; Mount Everest on the border with Nepal is the world's tallest peak Climate: extremely diverse; tropical in south to subarctic in north Terrain: mostly mountains, high plateaus, deserts in west; plains, deltas, and hills in east Elevation: mean elevation 1,840m, elevation extremes: lowest point: Turpan Pendi -154m, highest: Mount Everest 8,850 m (highest peak in Asia and highest point on earth above sea level) Natural resources: coal, iron ore, petroleum, natural gas, mercury, tin, tungsten, antimony, manganese, molybdenum, vana- dium, magnetite, aluminum, lead, zinc, rare earth elements, uranium, hydropower potential (world's largest), arable land Natural hazards: frequent typhoons (about five per year along southern and eastern coasts); damaging floods; tsunamis; earthquakes; droughts; land subsidence; volcanism: China contains some historically active volcanoes including Changbaishan (also known as Baitoushan, Baegdu, or P'aektu-san), Hainan Dao, and Kunlun although most have been relatively inactive in recent centuries Environmental issues: air pollution (greenhouse gases, sulfur dioxide particulates) from reliance on coal produces acid rain; China is the world's largest single emitter of carbon dioxide from the burning of fossil fuels; water shortages, particularly in the north; water pollution from untreated wastes; deforestation; estimated loss of one-fifth of agricultural land since 1949 to soil erosion and economic development; desertification; trade in endangered species Economic & Political Situation Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2015 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. Still, China's per capita income is below the world average. After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi after the currency was accepted as part of the IMF’s special drawing rights basket. The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, in- cluding rural migrants and increasing numbers of college graduates; (c) reducing corruption and other economic crimes; and This report is part of the project SPACE2ID which has received funding from the European Union’s COSME Programme (2014-2020) (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2014 more than 274 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. Several factors are converging to slow China's growth, including debt overhang from its credit-fuelled stimulus program, in- dustrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 13th Five-Year Plan, unveiled in November 2015, emphasizes continued economic reforms and the need to increase innovation and domestic consumption in order to make the economy less dependent in the future on fixed in- vestments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signalled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources. In 2014, China agreed to begin limiting carbon dioxide emissions by 2030. Macroeconomic Panorama GDP (purchasing power parity): $16.91 trillion (2013 est.) -> $18.14 trillion (2014 est.) -> $19.39 trillion (2015 est.) GDP - real growth rate: 7.7% (2013 est.) -> 7.3% (2014 est.) -> 6.9% (2015 est.) GDP - per capita (PPP): $12,400 (2013 est.) -> $13,300 (2014 est.) -> $14,100 (2015 est.) Gross national saving: 48.8% of GDP (2013 est.) -> 49.3% of GDP (2014 est.) -> 47.9% of GDP (2015 est.) GDP - composition by end use: household consumption: 38%, government consumption: 13.6%, investment in fixed capital: 43.4%, investment in inventories: 1.6%, goods and services exports: 21.7%, goods and services imports: -18.3% (2015 est.) GDP - composition by sector of origin: agriculture: 8.9%, industry: 40.9%, services: 50.2% (2015 est.) Agriculture - products: world leader in gross value of agricultural output; rice, wheat, potatoes, corn, peanuts, tea, millet, barley, apples, cotton, oilseed; pork; fish Industries: world leader in gross value of industrial output; mining and ore processing, iron, steel, aluminum, and other metals, coal; machine building; armaments; textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products (in- cluding footwear, toys, and electronics); food processing; transportation equipment, including automobiles, rail cars and lo- comotives, ships, aircraft; telecommunications equipment, commercial space launch vehicles, satellites Industrial production growth rate: 6% (2015 est.) Labour force: 806.3 million (2015 est.)/agriculture: 33.6%, industry: 30.3%,