Internet businesses are also growing as Chinese shoppers go digital.
China's online sales, or "e-tailing," totaled $120 billion in 2011. That beat Japan's online sales at $107 billion and the U.K. at $56 billion.
Looking ahead, the Chinese market is projected to top $650 billion by 2020, according to a May study by consulting firm McKinsey.
Amazon (AMZN) jumped into China in 2004, buying up a local online shopping site to reach the nation's growing number of consumers. Local rivals include Taobao, run by Alibaba, and 360buy.
The online boom should be supported by China's 130 million residential broadband accounts -- a number that will only increase going forward.