by Jari Makkonen, Mistral Consulting Limited (Hong Kong)
China has implemented several digital services 10-15 years ahead of the United States or Europe. Hence, in some businesses the Chinese innovation is clearly showing its own fruits. However, the old belief of “copying Chinese” is dying hard. At the same time, there are plenty of stories about foreign companies having difficulties competing with local companies in China.
In these both topics there are new developments in China to be paid attention to in 2018.
Global automotive market will possibly launch first new and revolutionary business models in China as the first country in the world regarding “mobility as a service”. Traditional automotive manufacturers and Internet giants like the Chinese “BAT” (Baidu, Alibaba, Tencent) work intensively on this topic, but to us relatively unknown disruptors might be working around corner to reinvent the whole business concept and become leading service platforms. We should follow this phenomenon and learn from this and possibly implement (“copy”) some of the Chinese disruptive services into our business models for example in Europe.
The Chinese government has recently also accepted the fact, that the electrification of cars is not moving ahead fast enough without continuous government support and hence continuation of support programs has been put in place. This growing market will make it more probable to see companies implementing in China new technologies and service models in the energy-related respect, too. Shockingly fast moves are made in this for example by the City of Shenzhen electrifying all its 16.000+ buses by 2018.
Foreign companies have often complained about tougher conditions to compete and tougher access to finance as the Chinese companies, especially the state-owned ones (“SOC”). Nowadays there are however opportunities to get local business support for establishing foreign (Finnish) SME -owned business entity in China. As well there are tax exemptions for companies working in certain by the Chinese government -promoted industries for example related to railways, mining, technology and agriculture, if the foreign company invests the support in their business development in China. For example, American companies complaining about the Chinese protectionism and threatening to leave China have been granted with this kind of support to convince them to stay and develop their China business.
Whatever your intentions are related to China in 2018, please be in contact with Kasvun Roihu and its China business partners by contacting Anna-Mari Blek and discuss with us, how we can help you to have better and more profitable business in China!
Interested in China?
Kasvun Roihu is organizing Grow to China program in Spring 2018. Grow to China is Grow to Market program which is targeted for growth-eager companies from Finland who are interested to expand or strengthen their businesses in China markets. This program is executed with best China market partners: Haier Hai Chuanghui, Boardman 2020, Crowe Horwath, Kolster, FinChi, Techcode, City of Jyväskylä and Mistral Consulting. Application time for the program ends 6th of February 2018.
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