The Chinese manufacturing sector serves two key markets.
The first key market that is served by the Chinese manufacturing sector is the local (Chinese) market. It is always important to keep it in mind that China has a population of more than 1 billion people. By all accounts, that is a huge market – especially when you also remember that China protects its local markets very jealously.
The second key market that is served by the Chinese manufacturing sector is the international (global) market. China has come to be regarded as the world’s factory – although this may not always be the case in the future, as the manufacturing investors discover more and more places where labor costs are even lower than in China.
It is also worth noting that China is trying to move from being a purely manufacturing-driven economy, to one that is also able to create high quality service sector jobs for its citizens. It may be just a matter of time we get to a point where you could go to Logmein123.com (also accessible via logmeinrescue.com) page to seek remote technical assistance in IT, only for the assistant to turn out to be based in China! These expectations are not at all very wild, considering the considerable financial muscle of Chinese institutions such as the China Export-Import Bank and other state-controlled institutions.