DOING BUSINESS IN CHINA

5 good reasons to do business in China

1

Increased consumer
spending power
and a growing
middle class

 

2

A significant infrastructure
investment programme which
will build a number of
new expressways, further
high-speed railways
and new airports
over the next ten years

3

An increased number
of free trade agreements
which have removed
tariff and non-tariff
barriers for the trade of goods

 

4

Commitment to liberalise
the exchange rate and
foreign investment regime

5

An increasing trend
away from a labour
economy to a service
and high tech
manufacturing
economy

Key sector growth
areas for China

Despite China’s former ‘one-child’ policy, the demand for foreign quality education is high and sustained growth will continue due to: a rising college-age population, growing middle-class, rising per capita GDP, continued growth in word-of-mouth referrals, and growing internet penetration rates which expose more potential students to overseas study opportunities.

The service sector is now taking up a greater share of FDI than the manufacturing sector, and attracted $66.2bn in 2014. An increased middle class and aging population is fostering a consumption-led economy, which is creating a big demand in key services such as healthcare, education and financial services.

Increased urbanisation will drive long-term FDI growth. Foreign companies with distinct advantages in alternative energy, bio technology new generation telecoms. energy efficiency, advanced materials and environmental protection are specifically in demand.

As China moves away from a labour intensive economy, the government is increasingly committed to foreign companies directly investing in high-end equipment manufacture, technology and R&D in China.

Insufficient local agriculture production capability to meet the population demands is leading to Chinese overseas direct investment. Whereas, in China, loss of confidence in local food brands due to issues around food safety, increased consumer spending power and changing appetites are creating a huge demands for international f&b brands in China.