China's middleclass could number
As China’s domestic firms shift to higher-margin business, they are open to foreign companies to supply them with high-value goods and services and can tap into the rapidly growing Chinese middleclass.
China’s state-owned enterprises (SOEs) are investing outside China, creating opportunities for internationally minded companies to participate in massive capital projects in Asia, Africa and Europe.
The next game-changing idea in global technology will likely come from China’s Silicon Delta, a cluster of cities in Guangdong province where many of the country’s most innovative companies are based.
Shenzhen-based companies have the highest average scores for innovative power Pearl River Delta, Shanghai and Beijing are top Chinese bases for innovative companies Coastal regions lead in innovation but some industrial, inland provinces gaining ground.
- Quartz “BRICS” is not big enough for China’s global ambitions 26 Nov 2017
- Quartz China’s recent port acquisitions begin to link up to overland BRI projects 15 Nov 2017
- Quartz Despite the BRI push, much of Chinese foreign direct investment still centres on Germany, the UK, and France 15 Nov 2017
China's economic transition involves:
- Global economic growth fueled by investment of China’s vast sovereign wealth outside of mainland China
- Clustering of higher-margin high-tech manufacturing and service-oriented businesses on the Pearl River Delta
- The Belt and Road Initiative is investing trillions of dollars in physical infrastructure and financial institutions linking China’s businesses to the rest of Asia, Africa and Europe
- Internationalisation of the renminbi, an inevitable consequence, as well as policy mandate, of externalising China’s investment.
By 2020 RMB will be an important trade settlement currency, investment currency and a reserve currency.
How will China’s growth plans impact your business with and in Asia?
Speak to your HSBC relationship manager to find out more or email us.