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Jessica Zhang, China Business Advisor

China-Britain Business Council

Tuesday 15 July 2014 – Liverpool IFB

China – Land of Opportunity

The Opportunities And

The Challenges

Shanghai 2010

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.

UK - China Visible Trade(not inc Hong Kong and Taiwan)

• Bilateral trade reached nearly £40bn

• China is the UK’s 7th largest export market

• In 2012 UK exports to China grew nearly 13%

• Increasing investment in both directions

Source: FCO

China has an economy like most continents:

- 287 cities - 274 with population over 1 million - 125 with urban population over 1 million40-60

20-40

0-20

60-100

Population (millions) by province

It’s Big

FUJIAN

XINJIANG

XIZANG(TIBET)

QINGHAI

GANSU

JILIN

GUANGXI

SICHUAN

YUNNAN

HUNAN

GUIZHOU

GUANGDONG

JIANGXI

HUBEI ANHUI

HENANSHAANXI

SHANXIHEBEI

SHANDONG

HEILONGJIANG

NEI MENGU(INNER MONGOLIA)

JIANGSU

LIAONING

HAINAN

TAIWAN

BEIJING

HONG KONG

SHANGHAI

TIANJIN

ZHEJIANG

NINGXIA

CHONGQING

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

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

New Opportunities

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

China’s Regional Cities

160+ cities with over 1 million people

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

• 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

Top Tips for China…

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

Shanghai

Shenzhen

Guangzhou

 

Beijing

Chengdu 

Tianjin

 

 Hangzhou

Nanjing

 

Chongqing

CBBC Team in ChinaOn-the-ground local expertise

Shenyang

Wuhan

Changsha

Xi’an

• 130 staff in 13 offices

• Working to help 100s of UK companies each year

Qingdao

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