China’s economic reform creates golden opportunities for foreign businesses

Posted on May 11, 2011 in AllEconomic News
The next five years will be a critical period for China to deepen the economic reform and to accelerate the transformation of its economic development pattern, according to the country’s 12th Five-Year Plan.

“Transformation” and “opportunity” were the two words reporters heard most when interviewing the senior executives of certain foreign enterprises. In their eyes, the accelerated transformation of the economic development mode in China will not only promote the country’s economic and social development but also create golden opportunities for various businesses. Many foreign companies have adjusted their global strategy and are paying more attention to the Chinese market.

Domestic demand and consumption

Bob McDonald, chairman of the U.S.-based Procter & Gamble, said in an interview that China’s economic growth will help improve the employment situation in the United States. There are some 1.3 billion consumers in China. Their income is growing steadily, and their demand for quality products and services is increasing rapidly. He said that the company will invest 1 billion U.S. dollars in China in the next four to five years.

Shinji Yamada, manager of the International PR Department of the Japan-based Kanebo Cosmetics, said that China has become the company’s most important overseas market, and Kanebo will introduce a five-year plan next month for expanding business in China. He said that Kanebo will not only improve its sales in large cities along the eastern coast of China, but also expand its business to the hinterland and second-tier cities.

“As the economy develops and people’s living conditions improve, there is an increasing demand for quality consumer goods in China,” he said, feeling happy about China’s rapid development and excited about the excellent business opportunities.

Ouyang Kun, chief of the World Luxury Association’s China office, said that as the income of the Chinese people grows and their purchasing power increases, the sales of luxury goods will be further boosted, and the Chinese people will gradually develop more mature attitudes toward consumption.

Energy efficiency and environmental protection

David Hathaway, managing director of the world-renowned consulting firm ICF International, is upbeat about China’s environment protection market for the next 10 years. He said, “I greatly admire the executive abilities and the far-reaching vision of the Chinese government. China has assumed its obligations to mankind and the world as a major power. The Chinese government has always strived to formulate sound energy and environmental policies, and its people have increasingly higher demand for the environment. Chinese enterprises have also drawn more and more attention to the “green marks” on their products or services. The development of China’s future green economy will surely be better and better and the environmental protection sector will promote China’s economy to a higher level in the future.”

Hathaway said that China became a manufacturer of European and American enterprises using its low-cost workforce in the past before developing itself into the world’s largest import market using its enormous spending power. China is now completing the “perfect transition” of becoming the ideal service import market of foreign enterprises. China is a country where every American company seeks to do business.

Tulsi Tanti, chairman of Suzlon Energy Limited, has praised the fast development of Chinese environmental protection enterprises and mentioned the precious expansion opportunities provided by the development of China’s wind power market to foreign enterprises. He said that entering into the Chinese market and participating in the projects of meeting the Chinese government’s grand “green” goals is a strategically wise decision for Suzlon. China’s open and friendly environment for foreign investments has also offered wind power enterprises a platform for fair competition.

Innovation and talent

Ronald Frank Christie, head of the China Regional Office of the Novo Nordisk Pharmaceuticals Science and Technology Company, a leading global biopharmaceutical company, said during an interview that the Chinese government is moving in the right direction of cultivating creative talent.

“As a pharmaceutical company, we are impressed by the improvement of China’s medical security system. I appreciate the cooperation between public hospitals and community clinics in the healthcare reform, which can maximize the introduction of advanced medical resources in rural areas and benefit the people at the county level with high-tech drugs,” Christie said.

Christie also said that Novo Nordisk’s first overseas research and development center is located in China. “The policy environment, human resources environment and market environment in China are very attractive to foreign companies. More than 90 percent of employees in our company come from the Chinese mainland, and the proportion in the research and development team is even higher. We also plan to double the number of employees in the research and development team in the next two years. Facts have proven that in China, we have the best talent, the most efficient production lines and the best market potential,” Christie said.

via China’s economic reform creates golden opportunities for foreign businesses – People’s Daily Online.