As China’s middle class continues to expand, more significant economic transformations are occurring every day. Larger multinationals are starting to take an interest in expanding their markets to include China, which is a cue for SMEs to begin targeting the niches that these larger companies cannot reach and providing the raw materials for their growing industries. Here are some of China’s larger provinces and their primary industries:
Overall, the largest industrial cities in China are focused on electronic goods, tech, and processed foods. SMEs looking to trade with Chinese manufacturers should take advantage of this and target their raw materials towards these industries. Moreover, companies looking to enter China’s market should consider these industries. Cities such as Shenzhen, Tianjin, Wuhan, Chongqing, Chengdu, Nanjing, Qingdao, Dalian, Suzhou, and Hangzhou all offer substantial commercial opportunities for foreign companies across a range of sectors.
China’s growing wealth, vast size, economic transformation, and changing demographics will continue to create opportunities for global companies. The manufacturing economy in China, which is already 50% larger than the manufacturing economy in the United States, will continue to evolve. It is moving away from labor-intensive, low-cost manufacturing toward more high-value-added, technology-intensive production. In AmCham’s most recent member survey, companies in healthcare services, aerospace, and retail and distribution industries were most optimistic about China’s investment environment. Consumer-based, R&D-intensive, service-sector companies view the continued rise of China’s affluent middle class as a critical driver for growth in China. Companies in these sectors expect to benefit from the globalization of Chinese companies and see increased outbound investment.
That being said, how do you then succeed in China’s market? Here are some tips:
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