The opportunities for American businesses to expand in China will continue to grow over the next decade. Morgan Stanley predicts that Chinese consumer spending will double by 2030. These increases will be driven in part by changing demographics, including population growth in urban areas. Population increases in specific age categories with higher spending, like the 35-45 age group, are expected to grow substantially.

Daniel Zipser, senior partner and head of McKinsey & Company’s consumer and retail practice in Greater China, notes that China’s growing middle class is increasingly open to conducting this spending online, creating opportunities for U.S. brands. “Consumers are digitally savvy and eager to explore new types of digital engagement and new ways to purchase goods, and we’ve seen a substantial acceleration of this over the last few months.” Zipser believes there are enormous opportunities for brands that innovate digitally and seize the opportunity to reach this massive consumer market. And the opportunity is not just for new brands, but also for brands and small businesses that are already on Alibaba’s platform.