China and Asia-Nordic Desk at Growth forum
China Business Environment Session
The China Business Environment Session was held at Growth forum seminar in Helsinki 1.11.2012. The session started off with a presentation by Angeline Hyytia, Nordic China & Asia Desk based in Helsinki, about the recent trends in China's business market. Overall the trends are that consumption demand is increasing constantly in China. There is also an increased demand for high-tech industries for example due to greater demands placed on the environment by increasing number of people living in the urban areas. Increased demand, e.g., for food safety, healthcare, education due to increasing life expectancy and also higher standards of living were also highlighted. The middle class is also rapidly expanding and demand for high quality lifestyle products is increasing with the greater affluent population.
Angeline Hyytiä, EY China and Asia Nordic Desk, introduces interesting facts on China
This was followed by insights from the Ambassador of China to Finland, Huang Xing and Nigel Knight, the Advisory Managing Partner of Greater China. When asked if China's market is slowing down at the moment, the Ambassador discussed that for the last 30 years, the development in China has been fast and a non 2 digit GDP growth is still very good growth. China's focus is now also changing from quantity to quality due to increased wages. Today it is also no longer just the coastal areas that are developing fast but also the central parts of China. Other factors that contribute to the recent changes are also the decreased demand in trade from Europe and America. When asked to give hints about what makes for a successful foreign company in China, the panelists commented that patience and perseverance are important as China is a long game. Firstly, building a sound relationship is essential and most companies gradually do better after being in China for more than one year. Secondly, it is important to be prepared, in terms of market research, doing due diligence when partnering and understanding the environment and behaviour of the China market. It was emphasized that due to the differences in cultures, it is also important to be able to localize one's thinking when doing business in China in order to gain better results. The sheer size and dimension might lead to surprises, thus businesses must understand how huge the market in China and be well prepared.
André Noël Chaker interviewing Huang Xing, Ambassador of China to Finland and Nigel Knight, Managing Partner of EY’s Greater China Advisory practice