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Benefit from our Greater China experience
Penetrating the Chinese market is no easy task; while economic reforms have allowed the transformation of China into a market economy, the country still keeps much specificity.  One of the major challenges is to be able to see through the social, economical and regulatory differences between the 32 provinces, municipalities and semi-autonomous regions. Most actors usually understand that business practices are different in China but tend to forget that they also differ within China.

However, along with the difficulties and challenges, China offers many opportunities for those ambitious and daring enough to seize them:
•    Different regulations mean tax competition between the provinces to attract investment and special regimes for those who know how to get them.
•    The 12th Five year plan is under way and has appointed the priorities of Chinese development along with billions in incentives.
•    China has signed the millennium chart and is implementing series of reforms on energy saving and the modernization of its industry, opening a door for foreign companies holding green technologies.
Also, even during the peak of the financial crisis, China has seen unprecedented levels of growth and development, to finally surpass Japan and claim the world’s second largest GDP in the 3rd quarter of 2010 with $1.337 trillion ($1.288 trillion for Japan).
2011 should confirm the tendency and see China settle comfortably in the second position of the GDP ranking with a growth above 8%.
On a more detailed note, several regions of China already play a significant role in the world economy and never fail to show their attractiveness.
•    Shanghai, as the largest city of China, has been proclaimed financial center of the country by Beijing and benefits from government incentives, the special economic zone of Pudong and its airport and the world’s largest cargo harbor.
•    Beijing, after a ten billion face lifting for the Olympic Games, has become a fully modern metropolis concentrating both economical and political power. With its 17 million inhabitants Beijing has an internal market and economical weight similar to New Zealand.
•    Hong Kong barely needs to be presented; with a nominal GDP higher than Malaysia or Israel and a GDP per capita among the world top 10, Hong Kong is a vibrant city that has attracted talent, and investment and wealth for the past 100 years.
•    Lastly, Taiwan with its status, is a real bridge between the East and the West. The island benefits from billions of dollars of investment from all over the world and remains a global strong technology leader with home-grown brands emerging onto the world stage.
Also, foreign investment has been rising steadily in recent years in China to an estimated 100 billion USD for 2010. Of this figure, while the manufacturing and industry sector still attracts more than 50% of the investment, services have increased their share to 45% in 2010 and represent the main drive of the Chinese FDI growth, mirroring the changing structure of China’s economy.

The crisis has also triggered a gigantic move of mergers and acquisitions for Chinese companies. To sustain the country’s growth, Beijing has pledged to offer a hundred billion in loans in the coming years for companies willing to acquire foreign assets and technologies or merging with businesses fitting the 2006 Medium- to Long-Term Science and Technology National Plan.

All in all, Greater China is now ready to take its role as one of the world leading economies and offers much to those ready to join the adventure.



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