The summit was a unique opportunity to showcase the strength of Northern Irish business and innovation and will provided a springboard to explore growth in China and Hong Kong.
Local political, business and academic figures had the opportunity to discuss the unique offering of the NW with Vice-Mayor Lu Lin and members of the Dalian City delegation during their visit to NI as part of the UK-China Regional Leaders’ Summit #NIChinaSummit2017 pic.twitter.com/dPBOuwXkzF— Derry Strabane Cncl (@dcsdcouncil) December 3, 2017
Many companies know about the potential of China but are still nervous about a perceived difficult business environment.
With 1.4 billion people, a land mass over 38 times the size of the UK and the second largest economy in the world, China‘s regions are diverse, effectively operating as distinct economies at times and with specific trading opportunities for businesses.
Hong Kong has an integral role in supporting Western businesses in understanding and accessing the market. Consistently ranked as the freest economy in the world, trade and finance are the cornerstone of Hong Kong’s economy. In practical terms it has a low and simple tax system, a world-class business infrastructure, and offers a level playing field for international companies. The official language of Hong Kong is English, it follows British Law and, aside from being a lucrative market for international business in its own right, Hong Kong hosts more than 50 million visitors per year.
The Chinese economy continues to open up to Western business. Just recently, the Chinese authorities announced that financial services firms could, for the first time, own a majority stake in a mainland joint venture. The financial institutions operating in Hong Kong’s hub will look to capitalise on this.
Now is also an especially exciting time as we see increased connectivity between Hong Kong, Macau and nine Southern China cities to form China’s Greater Bay Area. The Greater Bay initiative, alongside the Belt and Road initiative, recognises that commercial opportunities for the region have changed. With the emergence of the digital and technology sectors in China and the movement of the Chinese economy up the value curve away from low-cost export manufacturing, we are seeing many of the region’s cities starting to specialise. Shenzhen, for example, is developing as a high tech hub and HQ to major global players such as Tencent and Alibaba, and there are vast factory and assembly line capabilities in cities like Dongguan and Foshan.
The 11% depreciation of Sterling against the US dollar has made Northern Ireland exports ever more attractive making now a good time to explore the opportunities of China and Hong Kong.
The advanced manufacturing, and technology and digital sectors in particular, present trade opportunities for Northern Ireland’s longstanding strength in the engineering and our burgeoning tech cluster. There is already a healthy appetite for Northern Ireland goods in this region, and this will only increase on the back of the UK:China Summit.
The leisure and entertainment sectors can also capitalise on a fast increasing middle class with high consumer spending and demand for high quality overseas products such as food and beverages which command a premium here. There’s also a growing number of resort style hotels catering to middle class families, for example the upcoming rebrand of Sands Cotai Central to a London themed resort presents trade opportunities from design and specialist construction, to supply of beef and detergents, to name but a few.
It is very important to do your research before engaging in this market. Knowing the opportunities available that are suitable for your business, understanding what distribution channels there are and what the regulatory and licensing requirements are is important for sustainable success. These factors differ across Hong Kong, Macau and China, and this is something our market research service and in-market advisors can help with.
Asia is not a quick win, it’s a journey. Business partnerships need to be built on trust and relationships, this takes time and multiple trips to demonstrate a steadfast commitment to the region. Small gestures of respect go a long way, while quick responses to queries and regular communication with potential partners here is essential.
The 11% depreciation of Sterling against the US dollar has made Northern Ireland exports ever more attractive making now a good time to explore the opportunities of China and Hong Kong. Invest Northern Ireland has the expertise, experience and local knowledge to help you succeed so if you would like to explore the opportunities please contact your Client Manager or our Business Support Team on 0800 181 4422.