As China’s new leaders confirm their commitment to ongoing reform and continued support for foreign direct investment, market entrants can find a path to sustainable success in China if they bring an open mind and a flexible strategy, according to PwC.
“China has never been more open and welcoming for foreign investment. We’re currently seeing an increasingly attractive environment for foreign investment into China,” said PwC New Zealand partner and China sector leader Colum Rice.
“This could present a real opportunity for Kiwi companies who are prepared to make a real commitment to entering the China market and those who wish to further grow their existing business,” said Rice.
PwC’s China business guidebook, based on interviews with dozens of PwC’s China-based practitioners, shows rapid changes in demographics and market forces are opening up exciting new sectors and opportunities that would never have been believed possible a few years ago.
“China is moving from being the world’s factory to the world’s number one consumer, which obviously brings opportunities for canny and fast-footed New Zealand businesses,” he said.
“Recent experience has been focused on opportunities for Kiwi companies to work with Chinese partners to export to other markets. New opportunities are also now arising in goods that are ‘made in China for China’ and New Zealand companies should be looking to partner with Chinese businesses to supply China’s burgeoning middle classes with the consumables they crave,” adds Rice.
China’s simultaneous catalysts – an aging population, growing wealth, changing consumer attitudes, rising environmental awareness, greater mobility, urbanisation, and decreasing household sizes – are pushing the country through a rapid process of great change.
To keep up, a growing number of sectors and markets are moving towards liberalisation. The agenda for China’s new leadership is to encourage more private investment and to nurture the growth of the private sector. It is also committed to opening up new markets and sectors to foreign investment.
While there are initial signs of a pickup in the US economy the Euro zone still has substantial issues so the global economy remains highly reliant on strong growth expectations for China.
“There are no guarantees of success, but to give your business the best start, you need to carefully reflect, plan and commit the necessary financial and human resources to this new market with a long-term focus in mind. Finding the right path into the China market has its challenges, yet the rewards are immense,” concludes Rice.
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