It is often believed China’s economy is strongest in physical production or some service sectors – statistics are frequently quoted that China produces more cement than the rest of the world put together, more steel than the next 20 countries combined, the largest number of cars in the world are sold in China, China is the only country with over 1 billion mobile phone users, China has more than twice as many internet users as the US etc.
These are impressive statistics but they understate, because they are not the core of, China’s economic strength. China’s greatest economic strength is finance. In this field China has already overtaken the US even before China’ GDP equals the US. This dynamic determines the strategic development of China’s economy during the next decades.
To show this process the chart below shows the total amount of finance created in China and the US each year available for investment – i.e. total savings. The data is not percentages but the absolute amount in dollars at market exchange rates.
China’s economic achievement is so enormous, indeed literally without parallel in human history, that it is sometimes difficult for people to take in its scale. A country which in 1978, when “reform and opening up” was launched, was one of the poorest in the world, has now reached a point where it has a higher GDP per capita than the countries containing the majority of the world’s population. Only 30 per cent of the world’s population now lives in countries with higher per capita GDP than China.
In eigener Sache: HOLD THE DATE!
China-Seminar vom 12.9.2013 in Zürich in den Räumen von Ernst & Young
Sehr geehrte Leser/-innen des Connect.China-Blogs
Die Vorbereitungen für unser diesjähriges China-Seminar laufen auf Hochtouren. Die Steilvorlage kommt aus der Politik von ganz oben: Der Bundesrat hat sich letzte Woche mit dem Chinesischen Staatschef getroffen und bereits positiv über das Freihandelsabkommen mit China geäussert. Am China-Tag vom 12. September fokussieren wir uns auf das Thema „Strategie“. Nach dem wir in den letzten Jahren immer wieder darüber diskutiert haben ob und wenn ja wo in China es Chancen gibt, gehen wir nun einen Schritt weiter und diskutieren wie diese Chancen genutzt werden können. Welche Strategien zum Erfolg führen und wie Schweizer Unternehmen das Potential von China ausschöpfen.
Bevor wir damit breit nach aussen gehen, möchten wir Sie als Leser/-in unseres Blogs schon vorab über diesen Anlass informieren. Den Rest des Beitrags lesen »
Successful consumer marketing in China is, in many ways, as much art as science. It combines a sophisticated understanding of local perceptions and preferences with a willingness to embrace unconventional strategies and the best new technology. Read attached the Article of Accenture on this topic. If you want to learn more and especialy what it mean to you in your business we recommend to attend Connect China 2013 in September when Rocky Fu a Chinese Internet-Marketing Experts comes to Switzerland.
The world’s second biggest economy is set to create 260 million more middle class consumers by 2020, this means 260 million new customers for luxury goods. City dwellers account for the majority of the population.
At a press conference in Shanghai a few weeks ago, L’Oreal’s Chairman & CEO Jean-Paul Agon, highlighted this enormous opportunity to add to its customer base. Den Rest des Beitrags lesen »
China scores miserably on some types of innovation but does surprisingly well on others
Most depictions of Chinese innovation tend to paint the country in broad generalizations. The country is either a nation of copycat products whose schools have left its low-cost workers devoid of any ability to think creatively. Or it is a forward-thinking society that is pumping in funding and pumping out patents in such innovative sectors as life sciences and clean energy.
As usual, the reality is more nuanced. The truth is that China is better at some types of innovation than others. Bill Dodson, the author of “China Fast Forward: The Technologies, Green Industries and Innovations Driving the Mainland’s Future,” described innovation as a “spectrum of change,” during a recent talk in Shanghai. Ingenuity falls at one end of the spectrum, while paradigm shifts like the Renaissance fall at the other; in between are commercial innovation and discovery, said Dodson, who is a contributor to China Economic Review. Den Rest des Beitrags lesen »
Ein Laptop, ein Drucker, mehr als 100 Versandscheine und Verpackungen, das ist alles, was die 26-jährige Qu Wen für ihre tägliche Arbeit braucht. Von ihrem kleinen Zimmer aus verkauft sie Taschen, Kostüme und Accessoires über das Internet nach China und nach der ganzen Welt. “In meinem Laden bei Taobao.com (chinesisches Portal für Online-Shopping, ähnlich zu amazon, etsy.com) gehen jeden Tag etwa 100 Bestellungen ein. Der Umsatz liegt bei über 10.000 Yuan (rund 1250 Euro)”, erzählt sie. Drei Jahre nach dem Studium betreibt Qu ihren Online-Shop zusammen mit drei Angestellten. Zwar läuft er noch nicht ganz so gut wie ihr reales Geschäft in ihrer Heimatprovinz Shandong mit einem Umsatz von 20.000 (2500 Euro) bis 30.000 Yuan (3750 Euro). “Aber ich bin schon sehr zufrieden, dass es im Internet nach kurzer Zeit so gut klappt”, sagt Qu. Sie ist nicht die einzige Unternehmensgründerin, die ihr Start-up gleichzeitig on- und offline betreibt.
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Ferne Märkte werden für Firmen immer wichtiger – doch Japaner mögen süsswaren salzig, Amerikaner eher zuckrig und Chinesen cremig. Wer exportieren will, muss die Geschmäcker kennen. Ein spannender Artikel dazu aus der NZZ und weitere Details gibt es im September direkt von Nestlé bei Connect-China. Den Rest des Beitrags lesen »
Chinese outbound investment is growing – but it’s not going where you may think
There has been a lot of discussion these days focused on the potential for investment by China into international projects, with many governments, including those in the United States and Europe, keen to attract Chinese investment. While China remains non-discriminatory to nations when it comes to securing energy and commodity supplies, and will deal with anyone who is prepared to sell such assets, another picture is emerging over where China is investing overseas.
As we noted in our recent Asia Briefing piece on the expected establishment of a BRICS Development Bank, many emerging nations feel left behind by organizations such as the World Bank and International Monetary Fund that remain dominated by the United States and European Union. Such entities are perceived to be lacking in vision and are failing to keep pace with the changing dynamics of global growth.
Other than state-supported purchases of supplies, the real answer to where China is investing lies within its own backyard. Anyone who last visited China 20, 10 or even 5 years ago and returns today will immediately notice the massive boom in infrastructure that has taken place in the country. From practically dawdling coal locomotives to cutting-edge high speed rail in 30 years is some accomplishment. Anyone who has read Paul Theroux’s “Riding the Iron Rooster” will recall his accounts of traveling across China by train in 1988; aptly demonstrating the progress in infrastructure development that China has made over the years. That was just five years before the establishment of Dezan Shira & Associates, and Theroux tells of coal-powered steam locomotives running the length and breadth of China. The Iron Rooster being of course, an old fashioned steam loco, which is still used for industrial purposes in some of China’s poorer provinces today. Even today, China hasn’t completely phased their usage out.
The same is true of roads and airports. I recall the main Beijing airport expressway being a two-lane road frequented by donkey and cart (the road still exists to the side of the new eight-lane highway, serving local villages as traffic zooms past along the new road) while China’s airport terminals, once shabby versions of Soviet-built breeze block architecture are now constructed by internationally renowned architects. Just 15 years ago, the main source of refreshment at Beijing Airport was a cup of dried noodles and a massive, steaming hot water samovar used to drown them in. Now there are executive lounges, state-of-the-art facilities, and world-class shopping options with WiFi throughout.
If those are the clues, they are ones well worth noting. China’s overseas investments have largely been infrastructure-driven, with the exporting not just of cheap construction technology, but Chinese labor to go with it. This article highlights many of the projects China has been involved in and spells out the message very clearly: if you need roads built, China is your answer.
In this article, we discuss China’s foreign aid policy and identify some of the key geographic regions that China is supporting. Den Rest des Beitrags lesen »
Wir haben bereits vor einigen Wochen über den Artikel aus der NZZ zu den Herausforderungen von Wal-Mart in China berichtet. daher möchten wir an dieser Stelle auch darüber berichten wie es mit Wal-Mart in China weitergehen soll.
Wal-Mart to open 30 new stores in China
The world’s largest retailer by sales will open 30 new stores in China and invest nearly 500 million yuan ($80.1 million) to remodel existing ones in the country. Wal-Mart Stores Inc told China Daily on Monday it will remodel 50 stores this year, following completion of remodeling at 31 stores last year.
The new openings in China this year are part of a plan announced in October for the company to have more than 100 new stores in the next three years. This year, the US retailer has opened two new stores in Sanhe, Hebei province, and in Bazhong city, Sichuan province. Two hypermarkets will be opened in Shenzhen and Dongguang in Guangdong province and two new Sam’s Club stores in Hangzhou, Zhejiang province and Suzhou, Jiangsu province.