Investing in trade with China can produce tremendous rewards for large, as well as small, international businesses, but it's important that they understand the complexities associated with operating in that country, especially as its economic growth slows Firstly, it is important to understand the Chinese government's five-year plan, as it provides valuable insights into potential business opportunities and government incentives.
The National People's Congress, China's legislature, will soon announce its 13th five-year plan, for 2016-2020. This will set China's course for the coming years, with the social and economic measures laid out in the plan deeply impacting the business landscape and all companies, domestic and foreign, that operate in the country.
Keeping an eye on the government's growth priorities is important, as incentives are given to encourage the growth of certain sectors. Based on recent economic trends, industries that have received a lot of attention in recent years include: renewable energy, energy conservation, environmental protection, biotechnology, pharmaceuticals, new materials and rare earths, new technology, and high-end equipment manufacturing.
It is also important to understand the growth areas of your market. For example, there has been strong demand for Australian dairy, beef and lamb products in the past two years, with more food producers and exporters making efforts to understand how to distribute their products in China.
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