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?
The consumer economy
Global companies look at China and
see a huge and growing consumer
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.
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
"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.
This material was not prepared by a member of HSBC's Global Research Department. The report is based on the interpretation of data from survey responses conducted by Kantar and may differ from other opinions expressed by other members of the HSBC Group, including its Research Department. It has not been prepared in accordance with regulatory requirements to promote the independence of investment research. Any information contained in this material is not and should not be regarded as investment research for purposes of the rules of the Securities Exchange Commission, or any other relevant regulatory body.
HSBC Bank USA, N.A. makes no representations whatsoever regarding content of the material shared. This material has been prepared or supplied by Kantar. It is being shared by HSBC Bank USA, N.A. for information purposes only without review or validation of the content.
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