China to overtake US as No 1 purchaser

Even with the ongoing slowdown of China's economic growth, the world's second-largest economy is expected to overtake the United States to become the world's largest consumer market in the next five years, according to a report released by Standard & Poor's.

The report, entitled Financial Risks Are Rising as Retail and Consumer Product Companies Step Up their Spending Spree, pointed out that in 2012, total retail sales of consumer goods in China grew 14.3 percent to about $3.29 trillion, compared with $4.35 trillion in the more mature market of the US.

China's retail and consumer product industries are refining their growth strategies by looking outside of the domestic market for growth opportunities. Overseas acquisitions, said the report, are attractive options for Chinese consumer companies to improve product quality, increase differentiation, and acquire better brands.