On the occasion of the Spring Conference of Glasford International, held in Munich to mark the 30th anniversary of the foundation of Glasford International Deutschland, the Chairman of Glasford International, Alan Paul, gave a talk about China to journalists in Munich on 24th April 2015.
The key points of his presentation were as follows:
- After decades of double digit growth, the Chinese economy is now growing a slower rate of 7%. This is a very impressive growth rate for an increasingly mature economy, but it is clear that slower growth is the “new normal.” Foreign companies operating in China will need to adapt to this reality.
- Most foreign companies see the economic slowdown in China as the most important business challenge. Others include rising labour costs; attracting and retaining talent; market access barriers and regulation; and domestic competition. But despite these difficulties, China remains a market which foreign companies cannot afford to ignore, and which is likely to grow in significance in the coming years.
- In this era of relatively slower growth, the Chinese Government will seek to rebalance the economy by encouraging the development of higher added value industries and by investing in clean energy technologies, with corresponding less emphasis on cheap, export orientated production and traditional forms of energy and heavy industries. Chinese outward investment will continue to grow.
- The most striking change in the Chinese economy in the past decade has been the emergence of a large and growing middle class, with all the aspirations which flow from increased affluence. This trend opens up exciting opportunities in services & consumer goods, food & agriculture, education, healthcare, wealth management, and leisure.
- Foreign companies can continue to be successful in China as long as they are smart enough to understand the nature of the changes that are taking place, and nimble enough to take advantage of China’s growth direction and potential.
- This requires above all attracting and retaining outstanding executives with a deep understanding of the local market and the ability to devise and implement the right business strategies.
Glasford International, with its offices in China and Hong Kong, led by Consultants with decades of experience of China, is well placed to serve its client and to ensure that they hire the right people to succeed in this vast and complex market.
Born in the UK, Alan Paul has spent much of the last 40 years living and working in China in various capacities. For enquiries about Glasford in China, and how we can be of assistance, please contact email@example.com or firstname.lastname@example.org.