Chinese Economy and Business Opportunities Qinglei Dai Faculdade de Economia Universidade Nova de Lisboa
Agenda Chinese economic growth: an overview International trade with China FDI in China China-Portugal business relations Portuguese export to China Portuguese investment in China How to do business in China? Some international experiences
Chinese Economic Growth (1970-2009) 20 GDP growth rate (%) 15 10 5 0 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009-5 -10 World China Germany Japan United Kingdom United States
Chinese Economic Growth (1970-2009) 20 GDP growth rate (%) 15 10 5 0 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009-5 -10 World China Germany Japan United Kingdom United States
Chinese Economic Growth (1970 2009) GDP (billion $) 16000 14000 12000 10000 8000 6000 4000 2000 0 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 China Germany Japan United Kingdom United States
Chinese Economic Growth (1970 2009) GDP (billion $) 16000 14000 12000 10000 8000 6000 4000 2000 0 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 China Germany Japan United Kingdom United States
Chinese Economic Growth (1970 2009) GDP per capita (PPP) 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 China Germany Japan Portugal United Kingdom United States
International Trade Export of Goods and Services (billion US$) 1600 1400 1200 1000 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 China Germany Japan United Kingdom United States
FDI in China Global companies are now making a more aggressive push into China 2010: more than 1200 R&D centers In 2009, foreign-invested invested companies accounted for 28% of the nation s s industrial output 56% of exports directly employed 45 million people.
Portugal and China Trade Relations The total trade between Portugal and China in 2010 mounted 1.8 billion Euros Import from China: 1.57 billion Euros Export to China: 230 million Euros China became one of the top ten trading partners for Portugal in 2010 No. 8 import source country No. 24 export target market
1% Export from Portugal to China (2010) Portugal 1% and China Trade Relations 1% 1% Salt; Sulfur; Earths and Stone 1% 7% Electrical Machinery, Etc. 2% 20% Cork 2% Woodpulp, Etc. 2% Plastic 2% Rubber 2% Machinery; Reactors, Boilers Vehicles, Not Railway 3% Copper and Articles Thereof Furniture and Bedding 4% Beverages Manmade Staple Fibers 4% 19% Manmade Filaments Aluminum and Articles Thereof 4% Iron and Steel Wood 5% Stone, Plaster, Cement 5% Woven Apparel 10% 7% Tanning, Dye, Paint Iron and Steel Products others
Portuguese Investments in China Total number of projects so far: 172 Projects initiated in 2009: 14 Total amount of investment (in contracts): US$ 336 million Amount of investment (in contract) in 2009: US$ 51.5 million Yearly growth: 104% The majority of investments (63.5%) are made by the Chinese community residing in Portugal, with Portuguese companies investing the remaining 36.5%.
Portuguese Investment in China 2.0% 2.1% 5.9% (2009) textile / footware / leather goods machinery 3.1% 3.5% 4.3% 6.7% 8.1% 8.2% 11.1% 11.6% 33.4% chemicals electronics energy real estate and services metal material and products food office equipment / furniture / construction material cork trade other
Doing business in China: International experiences Key words for running electronic business in China: Low price Economies of Scale
Doing business in China: International experiences
Doing business in China: International experiences
Doing business in China: International experiences Enter Chinese market 1987 1990 Menu Localized Global standard Current No. of restaurants 3244 1300 What are they up to now? Replicating the successful experience in other brands of the firm, including Pizza Hut Modernizing image, promoting Coffee Culture, providing free Wifi
Thank You and Welcome to Visit China!