Moving inland is good for business

What are the latest big changes in China? For businesses, they include the shift to inland areas, rising costs, development of the service sector and a gradual lowering of growth.

Responding to these challenges depends on whether the changes are long term or just temporary blips. The fundamental driver of these changes is demographics, so they are definitely here to stay. China's workforce will start shrinking in a couple of years. By the mid-2020s the total population will be in decline.

The good news is China's urban population will not stop growing until around 2040, according to Economist Intelligence Unit forecasts. The challenge is to take advantage of three more decades of growth by going inland and preparing for opportunities in the service sector.