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Export to China – How We See the Future

Many leading brands in US and UK are now establishing their export bases in China. Typically to establish an export business in China, brand owners have to prove that they are in the country for long term. Usually entrepreneurs claim that Chinese businessmen are very excited to know that foreign investors have come to build a lifetime trading relationship and they think it is crucial for the growth in imports in their country. They like to connect with overseas exporters on equal footing and judge how the relationship will grow over time. Some businesses prefer employing native staff and establishing offices locally. Whatever the conditions of a trading alliance, one must choose his partners vigilantly. The growing emergence of Chinese economy reveals that it has an enormous capacity for manufacturing and exporting. Many manufacturing businesses in Europe and America find themselves unable to compete with the mass production of cheaper products by China. Since the wealth of country has developed a lot in past few years, European and American companies are heading towards export to China for sure. China has been Australia’s largest partner in trading and the graph given below demonstrates the same.

australia-china-trade

Current and Future Opportunities

China offers a huge potential for export across almost all industries. International businesses are already set to trade with China in the fields of tourism, nano and biotechnology, education, foods, environmental sciences, and urban and agricultural development. Have a look on the graphs given below, each of them shows the tremendous growth and expansion of Chinese economy over time.

Chinese-Student-Study-Abroad-Numbers

Value of export goods to Australia and China

YOY-Growth-Rate-US-China-Trade-Jan1986-Feb2013

Let’s count on what makes China the most sought out economy for export purposes:

China being Asia’s second largest market in food and drinks has an increased demand for premium quality products.

The ICT market in China has an estimated growth rate of 15% within next four to five years.

China is UK’s leading inbound market for tourism costs and it will remain so for the next decade with 7.6% annual growth rate.

China being one of the fastest growing nanotechnology and biotechnology companies provides million dolor businesses to manufacturers of healthcare goods and life sciences marketers.

Urban population in China is expected to grow by 20 million people annually and there will be a strong need for planning and resources used for urbanization and a call for multi million dolor investment plans for this purpose.

The largest education system in the world is operated by this country and it enrolls 20% of world’s students with just 2% of funding specified for educational purposes by Chinese Government. There is a huge scope of investment for manufacturers of goods and services in the field of education.

China is a leading force in the production of common household items, clothing, and accessories whereas manufacturers from UK, USA, and Australia are specializing in the manufacturing of high end products so they can definitely find a market in this country. Before they choose a trading partner in China, they should be vigilant and ensure their intellectual property rights are secured and they should know that there are trading partners who can steal their trade secrets.

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