Big Trends to Catch When Investing and Doing Business in China

2012-11-06 22:00 346



NANJING, China, November 6, 2012 /PRNewswire/ -- China is still a complicated place for anybody who has not grown up here or that is heavily influenced by western culture. But, putting one's fears aside, the simple truth is you can't afford not to invest in China. For business people, the new dream is one that sees them succeed in China.

Why China?

China has a long history and sophisticated culture; it has the second largest economy in the world; is a manufacturing haven; is an investment paradise for SMEs; and is now enjoying increasing levels of innovation - to name but a few reasons.

With little to no growth in many western nations and the pull of Chinese domestic consumption, the profile of companies investing in China is indeed expanding. China is now experiencing a "second wave" of foreign investment - while the first wave was primarily from big multinationals, the second wave brings with it greater quantities of foreign investment from SMEs.

Importantly, China's competitive advantage in manufacturing is no longer driven solely by low cost labor. Many Chinese factories have become very efficient and are able to deliver a high-quality product compared to counterparts in other low cost geographies. Furthermore, China is in the process of moving up the production value chain and is making a major push to develop its service sector.

Major Industries for Investment

China's State Council issued the "12th Five-Year Development Plan for National Strategic Emerging Industries" in July 2012. For foreign investors, these industries are big trends to catch.

The plan lays out the seven strategic emerging industries as follows:

  1. New energy auto industry
  2. Energy-saving and environmental protection industry (includes resource recycling industry)
  3. New generation information technology industry
  4. Biology industry (includes bio-pharmaceutical, bio-medical engineering, bio-breeding and bio-manufacturing industries)
  5. High-end equipment manufacturing industry (includes aviation, satellite, rail transportation, and marine engineering equipment industries)
  6. New energy industry (includes nuclear energy technology, wind energy, solar energy and biomass industries)
  7. New material industry (includes new functional material, advanced structural material and high performance composite material industries)


Smart Sourcing in China - Online Sourcing Trends

Finding suppliers in China is relatively easy. Finding good suppliers isn't! There are a few effective ways to connect with suppliers: Ask for referrals, the best way to find suppliers is to receive referrals from people you trust; check trade magazines for your industry; attend trade shows (the Canton Fair is called the No. 1 trade show in China); surf websites that have a good deal of audited suppliers from China, such as, which is one of the better-known sites. If you are about to connect with China suppliers on this site, be sure to trade with Audited Suppliers and download their Audit Reports from SGS to save time on background checks.

They Look to China for Investment through

Take Brazil as an example - we all know Brazil will host the World Cup in 2014 and the Summer Olympics in 2016, so the government of Brazil has set aside $130 billion as part of its economic plan to build railways, highways, airports and ports, according to Charles Tang, chairman of Brazil-China Chamber of Commerce and Industry during the Canton Fair in October 2012. The Brazilian government's stimulus package to increase its economy will create tremendous demand for Chinese products and investment. Trade between China and Brazil this year will reach $100 billion. signed an agreement with the Brazil-China Chamber of Commerce and Industry on October 2012 to help Chinese manufacturer's better tap the Brazilian market and vise versa.


Over 14 years' experience in the B2B industry, is connecting global buyers with China Audited Suppliers, as audited by SGS.


Source: Focus Technology