….50% of China’s population now resides in urban areas. However, from a China market entry perspective Beijing, Shanghai, Shenzhen, and Guangzhou are saturated, mature markets in which competition is fierce. The cost of doing business in these cities is growing by the day.
The real opportunities for Ireland’s exporters in China lie in the tier 2 / tier 3 cities, the 160 cities populated by over one million people, 46 of which have populations of 2 million or more.
With all this urban growth Central Government planners are pouring hundreds of billions of dollars into infrastructure. The scale is breath-taking.
For example, over the next five years the aviation industry will see an investment of $228.2 billion in the building of an additional 45 airports and the purchase of at least 1,900 additional aircraft to cater for an anticipated annual 450-500 million air passenger trips by 2015.
In every investment there is an opportunity for an Irish business.
If you are setting your sights on China, here are two pieces of practical advice:
(1) The key to managing risk China is first understanding what the risk is.
“Choose Your Battles Wisely” –
(Sun Tsu’s first essential rule. The Art of War, circ. 6th Century BC).
(2) Use experienced Irish people on-the-ground in China where ever possible to establish a beach head.