China Innovation Opportunities
Why should I read this document?
Opportunities and tips for innovation and doing business in China
- China is the world’s second largest economy in GDP terms, it has a huge consumer market, which absorbs diverse goods, services and innovative ideas.
- Digitalization of production and customisation are likely to become the solutions for productivity growth and satisfaction of growing customer needs. China has one of the largest ICT markets, although demand for deployment of ‘smart’ technologies, Internet-enabled innovations is greater than the supply.
- China has a large manufacturing capacity. However, the manufacturing sector requires innovation towards next-generation manufacturing.
- The demand for environmental, clean and renewable energy technologies is growing in China, as the country tries to transform industries and respond to challenges, such as pollution, shortage of natural resources and desertification.
- China is trying to improve its health sector, focusing on medical technologies, however, the competition in the market is not as strong as in other areas. In addition, large aging population opens wide opportunities for insurance, care service, medical and pharmaceutical companies.
- The Chinese high-tech sector is moving towards technological and innovative solutions in life science, robotics, smart city, new materials, information technology and 3D printing sectors. Currently, Chinese companies are looking for collaboration in above-mentioned industries.
- China has strong trade links throughout the world, it signed 14 free trade agreements and it is a member of the World Trade Organisation. Thus, China is a good place for importing, exporting and supplying to domestic and international markets.
- The Chinese labour market is large, the wages and production costs are still relatively low, in contrast to European levels, therefore China is a good location for resource intensive production.
- The Chinese market is dependent on foreign imports in several sectors, therefore it could be advantageous to launch a business in most demanded sectors or to start a partnership with foreign suppliers for Chinese companies.
- Social media plays an increasingly important role in shaping preferences, therefore it is a useful tool for developing a marketing strategy and examining consumer tastes.
- Chinese people are concerned about their financial stability, therefore credits and loans are not popular. When designing a marketing strategy, target consumers with sufficient income to pay for the good or service at once.
Innovation sectors and technology
Innovation culture and practices
What is the country known for?
The biggest sectors in China are: machine building, textiles, mining and ore processing, iron, cement, transportation equipment, petroleum, chemicals, food processing, electronics, telecommunications equipment, satellites, footwear, toys, steel, aluminium, coal.
Computers, broadcasting equipment, telephones, integrated circuits, video displays, electric motors, air pumps, electric heaters, non-knit women’s suit, knit sweaters, light fixtures, vehicle parts, rubber products, trunks and cases, jewellery.
How easy is it to do business in China?
|China||EU Average||Emergin Markets Average|
|Overall - ease of doing business||78||30||83|
Business trends in China
|Shanghai||Petrochemicals, chemicals, phamaceutical, automobile, electronic apparatus, financial|
|Beijing||IT, communications, electronics|
|Guangzhou||Automobiles, electronic appliances, textiles, apparel, toys, pretrochemicals, chemicals|
|Jiangsu||Chemicals, textiles, communications, petrochemicals, steel, foods, auto parts, biomedicine|
|Shenzhen||IT, semiconductors, biomedicine, communications, electronics information|
|Zhenjiang||Light industry, plastics, textiles, apparel, toys, metallurgy, household electrical, furniture, kitchenware|
|Shandong||Agricultural, oil & foodstuffs, pharmaceutical|
More hands-on info
- The EU-China Business Association (in 2017: http://www.eucba.org/en/)
- China EU International Association (in 2017: http://www.chinaeu.eu/chinaeu/)
- The European Union Chamber of Commerce in China (in 2017: http://www.europeanchamber.com.cn/en/home)
- EU Gateway Business Avenues (in 2017: https://www.eu-gateway.eu)
- Business Laws and Regulations in China (in 2017: http://www.china.org.cn/business/laws_regulations/node_1214470.htm)
- China IPR SME Helpdesk (in 2017: http://www.china-iprhelpdesk.eu)
- EU SME Centre in China (in 2017: http://www.ealink.eu/business-support/partners/eu-sms-centre)
- The EU Asia Business Link (in 2017: http://www.ealink.eu)
- The State Council of the People’s Republic of China (in 2017: http://english.gov.cn)
- The Central People’s Government of The People’s Republic of China (in 2017: http://english.gov.cn)
- Euractiv (in 2017: https://www.euractiv.com/sections/eu-china-trade/)
Export.gov. (2017). China – Technology and ICT. Retrieved from: https://www.export.gov/article?id=China-Technology-and-ICT
Kan, H. (2009). Environment and Health in China: Challenges and Opportunities. Retrieved from: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2799473/
Nelson, C. (2012). Senior Care in China: Challenges and Opportunities. Retrieved from: https://www.chinabusinessreview.com/senior-care-in-china-challenges-and-...
Xinhua. (2017). China seeks more sectors to cooperate with Israeli hi-tech startups. Retrieved from: http://www.chinadaily.com.cn/business/2017-11/20/content_34773304.htm
HKTDC Research. (2017). Trade regulations of China. Retrieved from: http://hong-kong-economy-research.hktdc.com/business-news/article/Small-...
Nelson, C. (2011). Understanding Chinese Consumers. Retrieved from: https://www.chinabusinessreview.com/understanding-chinese-consumers/
OECD. (2018). China. Retrieved from: https://www.oecd.org/sti/outlook/e-outlook/sticountryprofiles/china.htm
World Economic Forum. (2016). China’s Innovation Ecosystem. Retrieved from: http://www3.weforum.org/docs/WEF_GAC_On_China_Innovation_WhitePaper_2016...
The Innovation Policy Platform. (2018). China. Retrieved from: https://www.innovationpolicyplatform.org/content/china
China Briefing. (2015). Opportunities for FIEs in China’s High-Techn Sector. Retrieved from: http://www.china-briefing.com/news/2015/11/13/opportunities-for-fies-in-...
CIA World Factbook. (2018). China. Retrieved from: https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html
OEC. (2018). China. Retrieved from: https://atlas.media.mit.edu/en/profile/country/chn/
COMMCreative. (2011). Challenges and opportunities of Doing Business in China. Retrieved from: https://www.commcreative.com/feed/challenges-and-opportunities-of-doing-...
King, R. (2018). The China Market: Opportunities and Risks. Retrieved form: http://businesslife.com/articles.php?id=1106
Marketing to China. (2016). B2B (Business to Business) & Lead Generation in China. Retrieved from: https://www.marketingtochina.com/b2b-business-business-lead-generation-c...
Yip, G. (2014). China’s Many Types of Innovation. Retrieved from: https://www.forbes.com/sites/ceibs/2014/09/19/chinas-many-types-of-innov...
B2B International. (2018). Entering Chinese Business-to-Business Markets: The Challenges & Opportunities. Retrieved from: https://www.b2binternational.com/publications/china-market-entry/
Yingqun, C. and Nan, Z. (2017). European companies in China report sales growth. Retrieved from: http://europe.chinadaily.com.cn/epaper/2017-06/02/content_29587183.htm
Barton, D. (2013). Mapping China’s middle class. Retrieved from: https://www.mckinsey.com/industries/retail/our-insights/mapping-chinas-m...