Business Opportunities in China Giles Blackburne ChinaBritain Business Council

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Business Opportunities in ChinaGiles
BlackburneChina-Britain Business Council
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Agenda

• An overview
• Opportunities
• Business Considerations
• Advice Support

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China Economic Powerhouses
Bohai Rim
HEILONGJIANG
XINJIANG
JILIN
GANSU
NEI MENGU (INNER MONGOLIA)
LIAONING
Beijing
Tianjin
Dalian
NINGXIA
QINGHAI
HEBEI
SHANXI
Qingdao
SHANDONG
XIZANG (TIBET)
SHAANXI
HENAN
Nanjing
JIANGSU
SICHUAN
Shanghai
ANHUI
HUBEI
CHONGQING
Yangtze River Delta
ZHEJIANG
HUNAN
JIANGXI
GUIZHOU
FUJIAN
YUNNAN
Guangzhou
GUANGDONG
GUANGXI
Shenzhen
Pearl River Delta
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Is China a massive market?
Average 1,750
China GDP per capita
Beijing Shanghai 6,000
Hong Kong 24,000
Chengdu 2,200
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China continues to grow
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Opportunities

• Increased consumer spending
• Huge infrastructure development
• Increased manufacturing output
• Energy, including efficiency
• Enhanced public services - health education

• Environmental protection
• Financial Services
• Innovation, RD
• Creative Industries/Design

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National Science and Technology Strategy (2006 to
2020)

• Key Areas
• Energy
• Water Mineral resources
• Environment
• Agriculture
• Manufacturing
• Transportation
• ICT
• Health Care
• Urban Development
• National Defence
• Public Security

• Frontier Technology
• Biotechnology
• Information
• New Materials
• Advanced Manufacturing
• Advanced Energy
• Ocean
• Laser
• Aerospace Aeronautics

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Innovation in China

• National goal reduce reliance on foreign
  technology from 60 down to 30 or less (by 2020)
• 88 of Chinas hi-tech exports were produced by
  foreign owned firms (2005)
• real core technologies cannot be purchased but
  can only be achieved by innovation Hu Jin Tao,
  Chinas President
• Hampered by history, Confucian ideology,
  bureaucratic nature of current S T network

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Some business challenges

• Choosing a strategy
• Choosing a location
• Establishing a supply chain
• Bureaucracy and regulation
• Getting good employees and keeping them
• Rising Costs / exchange rates
• Tax structures
• IPR
• Different business culture

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Common mistakes

• Insufficient preparation funding
• Viewing China as one market
• Underestimating (or over-estimating!) the value
  of relationships
• Under-estimating the pace of change
• Failing to obey normal business instincts
• Stereo-typing and making assumptions

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Chinese Idioms for Business

• Seeing something once is better than hearing
  about it one hundred times
• Clapping with one hand makes no noise
• The first time people meet they are strangers,
  the second time, friends
• When you drink with an old friend a thousand
  glasses are too few
• Constant grinding turns an iron rod into a needle
• Same bed different dreams

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The Chinese recipe for negotiating

• Never throw the fish into a pot of hot water.
• The fish will jump out and cannot be cooked.
• Instead, put it into cool water, so its
  comfortable
• and wont suspect what you have in mind.

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• Very slowly, turn up the heat just a little at a
  time,
• so the fish doesnt notice its getting hotter.
• Keep the fish relaxed and happy and before he
  knows it,
• hes cooked

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UK Presence in China CBBC 11 Offices UKTI
China 4 Posts
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CBBC Offices Shenyang Beijing Qingdao Nanjing Shan
ghai Hangzhou Wuhan Chengdu Shenzhen Guangzhou Cho
ngqing
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UKTI China
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British Embassy Beijing British
Consulates-General Shanghai Guangzhou Chongqing
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Help From UKTI CBBC OMIS

• Overseas Market Introduction Service (OMIS) is a
  UKTI service delivered by CBBC in China - a
  flexible business tool, providing practical
  support, advice and key market information.

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Other CBBC Business Services

• Rep Office Service Company Set-Up Support
• Establish your own legal presence in China
• Advice to help you register a company in China
• Launch Pad
• A presence in China with minimum risk
• A base for regular visits
• Recruitment
• Business development support in China

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Contact CBBC

• China-Britain Business Council
• www.cbbc.org
• giles.blackburne_at_cbbc.org

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• Visit www.chamber-international.co.uk/openday
• to download the presenters notes