90% of businesses in China are optimistic about the next 5 years, markedly higher than their global peers. Are you making the most of opportunities in this thriving market?
We surveyed over 1,750 decision makers in companies that are either currently trading with China (two-thirds) or intend to start in the next 3-5 years. From this, we can give you insight into doing business in this significant market.
Consumer demand is driving growth – as income continues to rise in the world's second largest economy, demand for goods and services will grow. Businesses from around the world who are trading with China are more optimistic about their future than they were a year ago.
The opportunities to make China a key market for your international business strategy have never been clearer.
Are you making the most of China's growing consumer market, its appealing partnership opportunities, and its increased focus on sustainability?
When Trading with China - what are the key areas for your business to consider?
The consumer economy
Global companies look at China and see a huge and growing consumer market.
Income is rising, as is demand for better-quality goods and services.
Services: The next frontier
Global companies are increasingly eyeing the Chinese service market.
Nearly half of companies that intend to start trading with China in the next 3-5 years are service providers - up from the current one-third.
Partnerships are driving opportunity.
Global companies see China as an enabling business environment with mature industrial clusters that are moving up the value chain.
Being sustainable will set you apart
Chinese companies cite implementing sustainability practices as essential to their long term viability (30%).
At nine percentage points higher than the global average, being sustainable is a key differentiator for your business.
Enable your business to thrive
Optimism is equating to sales.
In the next five years, nearly one-quarter of companies trading with China expect sales to grow by 15% or more.
What's your strategy to maximise China's growing global trade and business potential?
China is the world's largest trader of goods
Of the companies already trading with China, two-thirds are buyers and sellers of goods
Yet China's service industry is untapped potential
Of the companies that intend to start trading with China, nearly half are service providers
Stuart Tait, Regional Head of Commercial Banking Asia Pacific
"Global companies look at China and see a huge and growing consumer market as well as an enabling business environment.
However, if global companies wish to succeed in trading with China, they must understand that sustainability is less of an environmental factor and more of a business consideration for their Chinese counterparts.
Opportunity favours those that can meet – even raise – China’s sustainability standards."
HSBC’s Navigator 2019 surveyed 9,131 business decision-makers in 35 markets. Research by Kantar for HSBC August and September 2019