Anyone with a bit of business nous knows where the next big economic power source is coming from- a rather generously populated nation in the Far East known as China.

While economic recession has plagued the world over the past two years, Chinese start-ups have braved the tempestuous business waters in search of innovation and forged a reputation as emerging entrepreneurs.

Like any new start up, there have been ups and downs along the way, and the recession has diverted the steady climb of many Chinese businesses that would have otherwise reached public company status by now. Nevertheless, we’ve supposedly reached the infamous ‘economic recovery.’ So could we be about to witness a second, stronger, more resilient wave of Chinese start-ups?

Focussing on the fates of the first generation of Chinese Silicon Valley start ups, Forbes.com writer, Rebecca Fannin, says:

“Over the past two years, search engine Baidu has toppled Google in China, gotten into mobile search, entered the Japanese market and moved into online video to compete with China brands Youku and Tudou.”

In addition, just two and a half years after going onto the Hong Kong Stock Exchange, online business marketplace Alibaba has gone global, offering premium buyers access to international suppliers worldwide.

So how has this happened?

Well for starters, official statistics from China show that the country’s internet users have reached 384million by the end of 2009, a 29% increase year-on-year and more than the total populations of the United States and Canada combined. Chinese Internet start-ups have an enormous potential marketplace to give their new business that kick-starting boost and have the perfect arena for ambitious budding entrepreneurs.

A recent survey reported by McKinsey & Co. shows that in Chinese commerce, two of the biggest growth areas were online banking and e-commerce. McKinsey says a significant number of consumers ages 18 to 44 won’t purchase a product or service without first researching it on the Web.

If this is the sign of things to come in China, perhaps starting up business in China is the way forward? Not convinced? Well, you are in the minority. It has been the top ranked country for foreign investment since 2002, taking $108.3billion from around the world in 2008 during the midst of the recession.

Technology is booming in China, and the internet has made an increasing impact on the daily lives of its people. With a gigantic tech-savvy population, and a steady economy, clever start-up opportunities are just waiting to go.   A new start-up dawn is rising from the east, lets keep the innovation sun rising in the west…