-
8/3/2019 IBA Presentation (1)
1/9
ANALYSIS(china now seeks to transform its focus from GDP
growth to a more sustainable model that balance growth with
social harmony )
KEY GOALS:
To distribute wealth more evenly and encouragedomestic
consumption
To protect the environment and promote energyefficiency
To foster the economic development of ChinasWestern and Central
regions
to shift the countrys economy away from export-driven
manufacturing and toward a more service-based economy.
-
8/3/2019 IBA Presentation (1)
2/9
These key goals have a potential impact on 33
industries which are broadly categorized into
five groups that come under international and
domestic business
-
8/3/2019 IBA Presentation (1)
3/9
Impact on
ANALYSIS
International
Business
Local/domestic
Business
-
8/3/2019 IBA Presentation (1)
4/9
International Business(with respect to international business
industry
categories that would be effected are)
1. New Strategic Industries:
Includes new energy source & Bio technology
Competing for technology leadership, fierce competition
(can offer energy efficient and environmental friendly products
)
Huge potential for foreign n domestic players
(as china plans an increase GDP growth in this share from 1%
to
8%)
Govt. policies are encouraging
-
8/3/2019 IBA Presentation (1)
5/9
2. Services:
Promoting investment in services
Grasping opportunity for popular names
-
8/3/2019 IBA Presentation (1)
6/9
Local/Domestic Business
1. Domestic Consumption Engines:
Includes food, tourism industry
( Would be benefitted the most as plan aims to increase
domesticconsumption, that can be done by making customer
focused
products)
Urbanization(west and central areas of china)(cement
industry, financial constraints) Incentives to increase domestic
consumption (tax
incentives)
-
8/3/2019 IBA Presentation (1)
7/9
2. Reinventors:
Mature industries(lag behind competitors in technology n suffer
over capacity.
Low efficiency and increased pollution )
Plan encourages local Innovation(on how to increase
efficiency)
Green development(enviroment friendly
products) Financial Constraints
-
8/3/2019 IBA Presentation (1)
8/9
Local/Domestic Business(with respect to domestic business
industry categories that would be effected are)
3. Social Utilities:
Includes all the infra structure
(railways, telecom, power airways sector) Urban development is
related to social utilities
(industries such as cement would have greater opportunities,
but would face financial constraints)
Certain Operational Cost
-
8/3/2019 IBA Presentation (1)
9/9
Restructures:
Includes real estate and commercial banking
Govt. is issuing 36 million affordable livingunits
( emphasis of real estate would shift to the construction on
middle sized apartments keeping in control the cost)
Commercial bank has a contradictory role
(lend more for middle sized housing schemes as well ascheck for
inflation.
