Business Game Changers Radio with Sarah Westall: China's Purchasing Power has By Passed the United States, It's Time to Pay Attention

China recently bypassed the United States as the world’s largest economy in purchasing power. For a business wanting to grow, it is hard to ignore the possibilities that tapping into this vast market can bring. Here are a few facts that give you a reason to pause and think about the opportunities that exist in China:

1. There are 1.367 billion people living in China.

2. Over the past decade, China’s economy has increased by 316%, 7 times faster than that of the U.S.

3. Despite this, a significant portion of the population still lives in relative poverty. According to IMF, the GDP per capita (PPP) of China in 2014 was $12,880, which is less than that of Iran’s. But this also means there is vast opportunity for growth. 

4. According to McKinsey& Company’s ‘Preparing for China’s urban billion’, China will add 350 million more people to cities by 2030 – 30 million more than the entire U.S. population.

5. At an estimated $200 billion, exports from China to the United States is four times greater than exports from the United States to China. This means there is immense opportunity to balance the scales.

 

These facts all point to incredible business opportunities in China. But before rushing in, there are many obstacles that companies must be aware of otherwise they will lose their investment and time. Here are a few things you must be aware of:

 

1. China is a Communist country. While it has become much more open to free markets, many of China’s largest industries are supported by the government. Depending on the industry, it can be good or bad for investment.
2. The fluctuation of the Chinese Yuan against the dollar can be significant.
3. As with all foreign countries, there are cultural norms that must be followed or you could insult important business contacts or even consumers in mass.
4. Again, as with all foreign countries, there are different laws and business procedures that must be followed to protect your investments.

 

Despite the obstacles, there are still great opportunities in China. Today’s episode we welcome Coco Kee, co-founder of Kee Global Advisors, to help us understand China’s business terrain.

 

Kee has more than 20 years experience helping Fortune 500 as well as SMEs from the U.S., Europe and China with global expansion. Her clients come from consumer, financial technology (Fintech), media & entertainment and the manufacturing industries. As one of the most experienced professionals in the field, equally experienced with China and the United States, she has successfully brought many fortune 500 companies into China as well as Chinese companies into the United States.

 

Coco holds a B.A. and an M.A. from Peking University and an MBA from the Haas School of Business at the University of California at Berkeley.

 

You can see learn more about Coco Kee and her company on her website at www.keeglobaladvisors.com