2030 Vision: Why your business needs to operate in China
Even though everyone knows that China is the biggest market in the world, many business in the UK still haven’t made their first move to China, why?
The answer can vary, but I think the main reason is that they don’t think they NEED to go to China, or they acknowledge they need to go there one day, but they don’t feel a great deal of urgency.
One company might say: China is not my target market, plus I’m doing very well in Europe.
Another could come to a conclusion, such as: There are too much unfamiliarity in China, I’d rather go to the USA where culture is much similar to us.
Yes, the above comments may make sense at the moment, but what about in 10 years’ time?
According to a research done by HSBC, the projection 2030 model suggests 5 of the 6 fastest-growing global economies will be in Asia, among them, China is set to be the world’s largest economy by 2030.
Unsurprisingly, in 2008-17, the biggest single contribution to global growth came from China. Projections on China will continue to lead the charge over the next decade or so.
This is the 1st reason for your business to consider going to China sooner rather than later.
The 2nd reason – China is expected to have faster GDP growth than most European countries.
The HSBC report also indicates that China’s push towards AI robotics could mean higher productivity and even faster GDP growth.
China currently faces demographic headwinds to growth, with a working-age population that peaked in 2017. There is a clear effort to push up automation, and China’s industrial upgrading will no doubt lead to a rapid increase in robots in the coming years. In other words, China’s future economy is developing into new technologies.
This has already started to happen, and if China’s industrial shift leads to a sufficient rise in automation to raise productivity enough to counteract its demographic drag, then higher GDP growth rates could be sustained.
Finally, the look of global economy is changing, and you should prepare for that.
With the rise of China and other Asian countries in the global economy rankings, currently-rich economies in Europe such as Austria and Norway, are predicted to slide down to outside top 30, and Denmark could even slip below top 40 by 2030.
Therefore, if your business is operating in these countries currently, you might need to start planning for 2030.
The future is in China, that is why your business will blossom there, not where you are now.