Transcript Business and Doing Business in China

Doing Business in China
Homson Shaw
[email protected] 078 79160321
Confucius Institute at the University of Ulster
Senior Advisor to Zhejiang Association of Entrepreneurs
 If
we want to truly be world citizens and to
create opportunities for business we want to
have a strong relationship with China as it is
one of the world’s strongest economic and
cultural powerhouses.
Professor Richard Barnett
Questions and Assumptions
about China
 Assumptions
China is a world economic leader
China will be the world’s largest economy in 2
decades
China is the world’s largest manufacturing
country
China is the world’s largest market of nearly
every product
Your assumptions?
Questions and Assumptions
about China

Questions:
 Is China a market economy? What types?
 Is China still a developing country?
 How rich is China now?
 How strong is China’s economy?
 What’s the structure of the Chinese economy?
 How significant is the role of the private sector?
 How can I do business in China, and where?
 Your questions?
Number of businesses on world’s top
500 sorted by country 2011
1 UnitedStates133 2Japan68
3 China61
4France35
5Germany34
6United Kingdom30
7Switzerland15
8South Korea14
9Netherlands12
10Canada11
Chinese enterprises on top 500
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7 Sinopec
8 State Grid
10 China National Petroleum
77 China Mobile Communications
87 Industrial & Commercial Bank of China
112 Hon Hai Precision Industry (Taiwan)
116 China Construction Bank
118 China Life Insurance
133 China Railway Construction
137 China Railway Group
How many private Chinese
businesses have made it to world
top 500?
0
Workforce Distribution
100
80
60
First Industry
Second Industry
Third Industry
40
20
0
1978
1990
2000
2009
Value Contribution to GDP
100
80
1st Industry
2nd Industry
3rd Industry
60
40
20
0
1978
1990
2000
2009
NE
West
Central
East
22000
17000
12000
7000
2000
-3000
National
av
Spendable Income 2009 rmb ¥
Urban
spendable
income
Rural
Spendable
Income
Per capita productivity 2009
Grain
398.7
Kg
cloth
57
M
Cotton
4.79
Kg
paper
67
Kg
Oil
23.69
Kg
yarn
18
kg
Sugar
92.21
Kg
coal
2.2
ton
tea
1.02
Kg
petro
142
Kg
fruits
153
Kg
electricity
2790
Kw
meat
44.43
Kg
Raw steel
430
Kg
fish
38.43
kg
cement
1234
kg
Growth of International Trade
1600000
1400000
1200000
1000000
export value m$
import value m$
800000
600000
400000
200000
0
1978
1990
2000
2008
2009
Industrial output world standing
197
8
199
0
200
0
200
5
200
8
200
9
Steel
5
4
1
1
1
1
coal
3
1
1
1
1
1
petro
8
5
5
5
5
4
electric
ity
7
4
2
2
2
2
cement
4
1
1
1
1
1
fertiliz
er
3
3
1
1
1
cloth
1
1
2
1
1
1
Agricultural output World Standing
1978
1990
2000
2005
2008 2009
grain
meat
cotton
soybean
2
3
2
3
1
1
1
3
1
1
1
4
1
1
1
4
1
1
1
4
peanut
rapeseed
sugarcane
2
2
7
2
1
4
1
1
3
2
1
3
1
2
3
tea
fruit
2
9
2
4
2
1
1
1
1
1
Economic standing of China
GDP
GDP per
capita
im/export
1978
1990
2000
2005
2008
2009
10
11
6
4
3
3
175
178
141
128
130
124
(188) (200) (207) (208) (210) (213)
29
15
8
3
3
Hu Jintao:Any achievement will be diminished if calculated by average and
problems amplified considering the size of our population.
2
Foreign ex. reserve 2009 in bln$
China
2399 Poland
Turkey
Indonesia
Israel
United States
73.4
Japan
Russian Fed.
Korea, Rep.
India
997
405.8
265.2
258.6
69.2
60.6
59
50.5
Brazil
Singapore
New Zealand
231.9 Argentina
186 Canada
140 Romania
42.9
42.6
40.8
Thailand
Mexico
Malaysia
133.6 Czech Republic
94.1 United Kingdom
92.9 Philippines
39.7
38
37.5
2009 Ratio of total GDP n
Consumer contribution
A: Total GDP: 5366 bln $/ per
capita~US$3000(Compare with HK:US$37517)
 B: Total consumer expenditure: 1282 bln $
 C: consumer expenditure contribution to GDP
growth: 45.4%; Capital formation
Contribution:95.2%;Trade: -40.6%
 B/A=24%
 Conclusion: consumer spending
insufficient>economy not healthy> sustainable?
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Problems and opportunities in China
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Problems:
 urban-rural disparities
 Economic structures
 Pollutions
 Labour qualities and efficiency
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Opportunities
 Clean energy technologies
 Pollution prevention
 Education
 Quality foodstuff
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Businesses need help to plan and to understand
the market they are going in to. That is why the
Confucius Institute is so valuable.
 First Minister Peter Robinson
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Think about China, the pleasure in learning
more about its people and culture and the
possibility of connections.
 Deputy First Minister McGuinness