Press Release – PwC
As Chinas new leaders confirm their commitment to ongoing reform and continued support for foreign direct investment, market entrants can find a path to sustainable success in China if they bring an open mind and a flexible strategy, according to …
Foreign business and investment in China is more vital than ever
As China’s new leaders confirm their commitment to ongoing reform and continued support for foreign direct investment, market entrants can find a path to sustainable success in China if they bring an open mind and a flexible strategy, according to PwC’s latest edition of Doing Business and Investing in China.
PwC New Zealand Partner and China sector leader Colum Rice says, “China has never been more open and welcoming for foreign investment. We’re currently seeing an increasingly attractive environment for foreign investment into China. This could present a real opportunity for Kiwi companies who are prepared to make a real commitment to entering the China market and those who wish to further grow their existing business.
“As much as New Zealand needs China, the Chinese Government and its businesses are looking to foreign markets, including New Zealand, to help China continue its strong economic performance and to help China achieve its economic objectives.”
PwC’s China business guidebook, based on interviews with dozens of PwC’s China-based practitioners, shows rapid changes in demographics and market forces are opening up exciting new sectors and opportunities that would never have been believed possible a few years ago.
“China is moving from being the world’s factory to the world’s number one consumer, which obviously brings opportunities for canny and fast-footed New Zealand businesses.
“Recent experience has been focused on opportunities for Kiwi companies to work with Chinese partners to export to other markets. New opportunities are also now arising in goods that are ‘made in China for China’ and New Zealand companies should be looking to partner with Chinese businesses to supply China’s burgeoning middle classes with the consumables they crave,” adds Mr Rice.
China’s simultaneous catalysts – an aging population, growing wealth, changing consumer attitudes, rising environmental awareness, greater mobility, urbanisation, and decreasing household sizes – are pushing the country through a rapid process of great change.
To keep up, a growing number of sectors and markets are moving towards liberalisation. The agenda for China’s new leadership is to encourage more private investment and to nurture the growth of the private sector. It is also committed to opening up new markets and sectors to foreign investment.
While there are initial signs of a pickup in the US economy the Euro zone still has substantial issues so the global economy remains highly reliant on strong growth expectations for China.
“There are no guarantees of success, but to give your business the best start, you need to carefully reflect, plan and commit the necessary financial and human resources to this new market with a long-term focus in mind. Finding the right path into the China market has its challenges, yet the rewards are immense,” concludes Mr Rice.
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Notes to editors
PwC’s third edition of Doing Business and Investing in China is available online at www.pwc.co.nz/chinabusiness
The guidebook is a compilation of insider knowledge about China – advice insights and perspectives gained through interviewing dozens of PwC’s leading China-based practitioners. These contributors offer a wealth of on-the-ground experience in dealing with top business issues in China, such as sustainable supply chains, risk resilience, JV and M&A deals, and government relations.
The ten chapters of the book cover topics which have been developed in response to issues that China investors and corporate leaders have told us are of importance to them. They are:
1. Market entry and growth
2. Doing deals
3. Managing risks
4. Corporate governance and IT effectiveness
5. Human resources and talent management
6. Finance and treasury
7. Supply chain strategies
8. Government relations, regulatory compliance and stakeholder alignment
9. Tax management: planning and compliance
10. Accounting and reporting.