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What is the China businesses environment ?
ATAHK we have studied and reasearch the China business Environment for theinvestors who are interested in do business in China . In China right now, there’s tremendous confidence and a pervasive sense that Western-style democratic capitalism has failed, and that America particularly is in decline. There’s a feeling of, “We don’t need to worry about America. We are not only rising, we have risen.”
At the same time, it’s a very, very competitive, insecure business environment. People feel enormous pressure to reap their gains as quickly as possible, because they really don’t know how it’s going to evolve. They’re positive and they’re quite optimistic that they can do it, but they are also anxious and uncertain. The rules of the game have changed so often—what worked last year may not work this year.
Risk is a big topic. Mitigating risk as a Chinese entrepreneur means learning how to diversify your investments beyond China. In other words, how to carry on your business outside regulation by the government.
It’s what Apple and HP and every other U.S. corporation does. They compare the relative burden of the tax laws and how to work most effectively in a global environment. Chinese businesses are in exactly the same position. They’re saying, “Okay, we have this capital, where should we put it? Are we just going to park it in Hong Kong real estate? In Manhattan real estate?” Currently it appears that diversification through real estate is one focus, but so too are investing in existing businesses and startups.
Delivered in the second quarter of 2014 demonstrates, the government still possesses levers to push GDP growth rates up and down quite rapidly. In other ongoing government initiatives, the “marketization” of prices for electricity, water, land, and capital is having a major impact on the behavior of business, leading to a new focus on productivity, even within state-owned enterprises. Progress in bringing more private capital into state-owned enterprises is slow at the national level, with few scale examples, such as the $30 billion partial privatization of Sinopec’s gas stations under way.
Industries with potential for faster growth in the next decade
Many of the industries with the highest growth potential in China over the next decade are in the services sector, but not all. For example, energy and agriculture will have segments with very rapid growth. Below is a very brief snapshot of where we see opportunities.
Huge manufacturing scale
China is the world’s largest manufacturer, with more than $2.2 trillion in manufacturing value added. It makes 80 percent of the world’s air-conditioners, 90 percent of the world’s personal computers, roughly 70 percent of the world’s solar panels, 90 percent of the world’s mobile phones, and some 65 percent of the world’s shoes. Manufacturing makes up 40 percent of the Chinese economy and directly employs 130 million people. But its traditionally low labor costs are rising, and there is aggressive movement from low-tech assembly to high-tech manufacturing, as well as from the more expensive coastal areas into cheaper central and western China. In addition, Chinese companies’ strategy of building big and selling cheap may not be enough to win in Western markets against companies with both established market share and brand equity, which is the primary barrier preventing Chinese manufacturing scale.
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If you have further queries, don’t hesitate to contact ATAHK anytime, anywhere by simply visiting ATAHK’s website www.3737580.net , or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82148419, or emailing to info@citilinkia.com.