Much of the world's growth in the next two to three years will come from China, according to a new report titled "50 Degrees East: Opportunities and Challenges" by consulting firm Allen & Overy. 

Based on a survey of 1,000 business leaders from major international firms in 19 countries, China ranked number one with 44 per cent of votes when respondents were asked to identify the three markets that presented the best business opportunities. India followed with 34 per cent, then United States with 23 per cent, Brazil with 14 per cent and the UK with 12 per cent. 

The strongest China votes came from South Korean respondents, with 75 per cent of them naming the Mainland as a key growth market. Other major China votes came from Germany, 69 per cent, and Brazil, 60 per cent. 

According to A&O's related Investment Perspectives study, besides being the target market of many investors worldwide, China has also been doing its share of investments outward. In fact, the firm reports a 457 per cent increase in China's foreign direct investment outflows from 2005 to 2010, when investment reached $68 billion. For many Chinese, the best opportunities for growth lie with India, 27 per cent, followed by the US, 25 per cent, and China, 19 per cent. Sixty-five per cent of Chinese business leaders say they are very confident about their business prospects in the next 2 years, compared to 53 per cent globally.

On the other hand, while China presents the best opportunities, the report shows it is also perceived as the most difficult market to penetrate, according to 21 per cent of the executives polled. This is followed by the US, 19 per cent, Russia, 17 per cent, and Germany, 12 per cent. The leaders identified tight regulatory environments as the largest hurdle to market entry. 

The full study may be viewed here.