China – Land of Opportunity
The Opportunities
And
The Challenges
Jessica Zhang, China Business Advisor
China-Britain Business Council
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Tuesday 15 July 2014 – Liverpool IFB
In 2011, China overtook Japan to become the second biggest economy in the world.
The Chinese economy is projected to overtake the US economy by 2020 to become
the world’s largest economy.
Shanghai 2010
UK - China Visible Trade
(not inc Hong Kong and Taiwan)
45
40
35
30
25
Bilateral Trade
Imports
20
Exports
• Bilateral trade
reached nearly £40bn
15
• China is the UK’s 7th
largest export market
10
5
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
• In 2012 UK exports to
China grew nearly 13%
• Increasing investment in
both directions
Source: FCO
It’s Big
HEILONGJIANG
XINJIANG
JILIN
GANSU
NEI MENGU
(INNER MONGOLIA)
LIAONING
BEIJING
TIANJIN
NINGXIA
QINGHAI
China has an economy like
most continents:
HEBEI
SHANXI
SHANDONG
XIZANG
(TIBET)
SHAANXI
HENAN
JIANGSU
SICHUAN
ANHUI
HUBEI
CHONGQING
SHANGHAI
ZHEJIANG
HUNAN
JIANGXI
GUIZHOU
FUJIAN
Population (millions) by
province
YUNNAN
GUANGXI
GUANGDONG
TAIWAN
60-100
HONG KONG
40-60
20-40
0-20
HAINAN
- 287 cities
- 274 with population
over 1 million
- 125 with urban
population over 1
million
What does China want?
• Increasingly affluent, aspirational, sophisticated – and urban
• Growing mid-range consumption
• Rising expectations, individualism and emotional needs
• Services:
• Retail
• Education
• Financial & professional services
• Travel
• Medical
New Opportunities
Ageing Population, Healthcare & Food Safety
•
•
•
•
•
Rapidly aging population
Growing burden on families /middle generation
Focus on healthcare & social welfare needs
Food scares, baby foods, health alerts
Pollution & health issues
Government Development Policies
•
•
•
•
•
•
Infrastructure & urban development
Environment & green-tech
Currency exchange & banking
Free Trade Zone
R&D Investments & moving up the value chain
IPR Control
China’s Regional Cities
160+ cities with over 1 million people
By 2025, China will have more than 220 cities with 1
million + inhabitants
China’s urban population is forecast to reach 1 billion by
2030
Challenges for Business in China
1. Regulations & Bureaucracy
2. Building Relationships
3. Language & Culture
4. Adapting Business Models
5. HR & Employment Issues
6. Local Knowledge & Market Research
7. Marketing & Communications
Top Tips for China…
• Do your research. Accurate market intelligence is difficult to find.
Seek in-country expertise
• Ensure your business strategy is right for China. Take advice.
• Focus (location, targets) and proceed step-by-step
• Invest in building relationships & making connections, visit regularly
• Find a local partner or have a local presence
• Spend time building brand awareness & credibility
• Be flexible & adapt to local needs
• Be patient
About CBBC
Developing UK trade in China since 1950s
Widely recognised and respected at highest levels
in both Chinese and British Governments
Unique relationship with official Chinese trade organisations and
companies
Support for organisations of all sizes in all sectors
Powerful UK and China network
Team of 125+
Merged with British Chamber of Commerce, Beijing
UKTI’s delivery partner of choice
Sample of CBBC Members across sectors
CBBC Team in China
On-the-ground local expertise
Shenyang
Beijing
Chengdu
Chongqing
Qingdao
Tianjin
Xi’an
Wuhan
Nanjing
Changsha
Shanghai
Hangzhou
Guangzhou
Shenzhen
• 130 staff in 13 offices
• Working to help 100s of UK companies each year
CBBC Access and influence
Jessica Zhang
China Business Advisor
China-Britain Business Council
Email: jessica.zhang@cbbc.org
Tel: 0151 227 1234 ext. 2239
Mobile: 07932571940
www.cbbc.org