Pitching Tents for Investment in China
SMEs getting in touch with China for prospective business will regularly sound first business opportunities by doing trade. Provided auspicious experiences prevail, investment is being considered.
Often, an intermediate representative office will be opened to sound the market more intensely.
Only after being more familiar with the market cum environment and after expecting better chances for a future manufacturing base, a more extended investment is being projected.
This investment proviso has received a “twist”, however, owing to a new policy of the Chinese Government:
The recent official Chinese policy is favouring now products “Made in China”. Implementation of this policy shall be completed by 2025.
Although larger transition periods may be granted, there is a definite trend and “undertow” for foreign companies to open a production enterprise with the investment being necessary, as a WFOE or a JV with a Chinese partner. Accordingly, trade from abroad toward China might become curtailed.
Looking closer to the scenario, however, relief will be achieved, not only by the large extend of the Chinese market, but also by the freshly created “Asian Free-Trade Zone” with an even more gigantic market extend than the one of China is, owing to the participation of all countries of that gigantic clime, to the exception of India and North Korea).
And this is still not the complete reachable market extend, as China enjoys preference market conditions with nearly all members of the East-Asian Economic Union, and the neighbouring countries in the North and Northwest of China.
It has therefore also to be added that the expanse of such market in and around China will leave colossally broad room for business, as above mentioned. Such market expanse sounds like bringing heaven of Earth. But there will be spines at the shafts of the formidable bunch of roses according to the mankind involved in the different countries. Yet this should not frighten off businessmen to sound and find opportunities for load-bearing deals and operations abroad.
And just by the way, RPC with its longstanding experience on the spot, particularly in China, will be there to help and find suitable solutions of customers. This support will include to find the place, where the optimal place should be to “pitch tents.” For a rewarding business.
Reported Interesting fields for Investment, at present, among others:
- Medical Instruments manufacturing & Engineering
- Satellite transmission services,
- Smart energy (electrical and/or hydrogen)
- Electrical machinery & equipment,
- Degradable plastics
- Toll road operation,
- Precision Measuring Equipment
- Precision Handicrafts
After all, technologies and services requiring the technical “nano-exactness” German companies are well-known for, regardless of the size.