Where is the next market opportunity? They say they are still "in China" globally | China | opportunities
"Any trend in China will bring business opportunities. Thailand, the world's largest exporter of durian, has witnessed how the consumption boom in China has driven rapid global demand growth in a short period of time. A recent report on the website of the Spanish newspaper" The Economist "cited an economist's report stating that in the past two years, durian imports from China accounted for 91% of global demand.".
The August economic data released by the Chinese government on the 15th confirms the enormous attractiveness of the Chinese consumer market to the world. In August, the total retail sales of consumer goods in China increased by 4.6% year-on-year, 2.1 percentage points faster than the previous month. "China's economic data has improved" and "China's retail sales have exceeded expectations"... Foreign media have paid attention to the positive recovery of the Chinese economy.
Behind these data lies a coveted business opportunity from the outside world. Since the beginning of this year, the global economic recovery has been weak, and the spillover effects of policy contraction in major developed economies have become apparent. The Chinese economy has withstood pressure and continued to recover, continuing to become an important engine of global economic growth. "Providing new development momentum for the world through the opportunities of the Chinese market" - This is also why many multinational entrepreneurs, when asked "where is the next market opportunity similar to China", do not hesitate to choose China.
So, what can they get from the Chinese market? Let's take a look at the economic data of China in August.
The Chinese market is mobile and constantly undergoing transformation and upgrading, which will bring sustained and stable returns to multinational enterprises. In August, there was an increase in travel among Chinese residents, and consumption of services such as catering, accommodation, and transportation continued to expand. The national catering revenue increased by 12.4% year-on-year, and the business activity index of industries such as railway transportation, air transportation, and accommodation remained in a relatively high prosperity range of over 55%. At the same time, digital consumption and green consumption are gradually becoming new trends in China's consumption upgrading. Not only are e-commerce, live streaming economy, online entertainment and other online consumption booming, but smart shopping guides, AR makeup tests, and naked eye 3D screen experiences in offline shopping malls have also attracted a large number of customers. In addition, according to statistics and analysis from the China Association of Automobile Manufacturers, domestic sales of new energy vehicles increased by 29.7% year-on-year in August.
According to the calculation of the State Administration of Foreign Exchange of China, the return on foreign investment in China has been 9.1% in the past five years, far higher than the 3% in Europe and America, and also higher than the 4% -8% in other major emerging economies. Tesla's Shanghai super factory accounted for half of the global delivery volume last year, producing one electric vehicle every 40 seconds; Starbucks has opened 6500 stores in China, adding one every 9 hours... Analysis suggests that China has a large middle-income group, which means there are huge potential opportunities in consumer sectors such as automobiles and pharmaceuticals, and multinational corporations will continue to invest and expand in these areas.
The transformation and upgrading of Chinese consumption corresponds to the transformation and upgrading of supply. Chinese technological innovation has provided convenience in research and development for multinational enterprises. The head of global investment management firm Franklin Templeton recently said at a conference in Singapore, "China trains more engineers every year than any other country, so I believe innovation will bring opportunities.".
Since the beginning of this year, more and more foreign companies have settled their research and development centers in China, including the R&D center of Thermo China, the automation R&D center of Schneider Electric China, and the design center of Volvo Cars Shanghai. Behind this, China's vast market, well-developed industrial ecosystem, and abundant talent reserves are important factors.
For multinational corporations, stable expectations are crucial in the face of increasing instability, uncertainty, and unpredictable factors in the international market. The growth target for the Chinese economy this year is around 5%. The World Bank, OECD, and International Monetary Fund predict that the Chinese economy will grow by 5.6%, 5.4%, and 5.2% in 2023, respectively. At the same time, in terms of policies, unlike some Western countries that often make sharp turns, the stability and continuity of China's economic policies provide multinational corporations with peace of mind. The establishment of a roundtable conference system for foreign-funded enterprises, among others, helps to respond promptly and address the concerns of enterprises, facilitating their development. McKinsey believes that China is one of the largest soil providing important development opportunities for multinational corporations on a global scale.
Of course, post pandemic economic recovery is a process of wave like development and tortuous progress. Recently, China has introduced a series of measures such as restoring and expanding consumption, promoting the development and growth of the private economy, and increasing efforts to attract foreign investment. As China welcomes traditional festivals such as the Mid Autumn Festival and National Day, the driving effect of the long holiday on consumption and economy will continue to emerge, and "mobile China" will also bring more development momentum to the world.
