China

Why China?

China is the great economic success story of the last 25 years and is set to become the world’s second largest economy in 2010.

China has emerged strongly from the global financial crisis. The World Bank recently raised its 2010 growth forecast for China to 9.5%.

Rapid urbanisation (75% of Chinese people are expected to live in cities by 2025), massive infrastructure investment and an increasingly skilled and mobile workforce are creating a more favourable business environment.

Opportunities exist for UK companies not just in the major cities but increasingly in China's regional business centres.

China has an increasingly large and affluent domestic market. Its estimated 250 million ‘middle-class’ spenders are becoming increasingly brand conscious.
 

GEOGRAPHICAL REGIONS

Northeast, northwest, central China and the Bohai Rim

Covering the municipalities of Beijing, Tianjin and provinces of Hebei, Henan, Shandong, Gansu, Ningxia, Liaoning, Jilin, Heilongjiang, Inner Mongolia, Xinjiang, Shanxi, Shaanxi,   Tibet, Hubei and Qinghai.

East China (Yangzte River Delta)

Covering the municipality of Shanghai and provinces of Jiangsu, Anhui and Zhejiang.

Southern China

Covering the provinces of Guangdong (including major cities: Guangzhou and Shenzhen), Fujian, Guangxi, Jiangxi, Hainan and Hunan.

Southwest China

Covering the municipality Chongqing and provinces of Sichuan, Yunnan and Guizhou.

Click here to view a map showing the above regions.

Key sectors of opportunity

Advanced technologies, energy efficient products, professional management practices and skilled processes are in high demand across the spectrum of industry sectors. The next phase of Chinese economic development will play well to UK strengths in the services sector.

Energy Technologies - Chinese economic growth has fuelled demand for energy in all its forms. The Chinese government has prioritised the development of energy efficiency, including carbon finance and diversification of energy sources, including renewables.

Environment - The Chinese government has called for a “resource-saving society” and has placed a focus on attracting foreign investment in the environmental sector particularly in pollution control, water quality and waste treatment.

Infrastructure - Backed by China’s fiscal stimulus plan, major developments in rail, road, airports and other network infrastructure are underway, as well as opportunities for sustainable city master planning and energy efficient/green buildings.

Financial & Professional Services - Continuing financial sector reform in China’s banking, insurance, securities and consumer finance sectors offer a wide range of opportunities for UK expertise and companies. The dynamism of Hong Kong is complemented by the increasing sophistication of the rapidly developing financial centres of Shanghai, Beijing and Shenzhen is balanced by growing opportunities for businesses in key regional cities across China.

ICT - Growth in the Chinese telecommunications sector has been dramatic, with China Mobile now the world’s largest mobile operator and network suppliers Huawei and ZTE quickly developing into global players. While roll-out of 3G is underway, Chinese operators are already developing 4G. With over 400m netizens, internet technology and services are fast growing too. The Chinese Government is supporting initiatives to develop the industry further, including M2M and convergence.

Creative Industries - Underpinned by supportive Government policies, the growth potential of China's creative industries is huge. Business opportunities for UK companies include communication and branding design, retail and interior design, architect design, digital content, animation, TV, publishing and advertising. Beijing, Shanghai and Shenzhen are emerging as centres for creative industries.

Life Sciences - The Chinese government is spending RMB 850 billion to upgrade healthcare infrastructure and delivery systems. Opportunities exist in healthcare services, private hospital provision, commercial health insurance, biotech & pharmaceuticals.

Advanced Engineering - Exciting opportunities exist for UK companies to tap into supply and global value chains as China increasingly becomes an important international production base and market for the global aerospace and automotive industries.