"Say China grows at 2% per annum during the next decade, its economy will increase by $3.5 trillion – that’s the same amount as India's entire economy today. If China grows at 5%, it will add $9.8 trillion to its GDP or the equivalent of India, Japan and Indonesia combined."
"Chinese firms are increasingly competitive and are thinking about scaling globally. MNCs can't afford not to compete in China because eventually they will face Chinese competitors globally."
"Manufacturers like Foxconn are investing in manufacturing in India and Vietnam to diversify their sources of supply. But those countries lack China's scale or mature manufacturing processes That is why you have companies like BASF spending $10 billion in Zhanjiang."
"Firms are at a tipping point. They must decide how important China is to their business globally. Automotive and luxury goods firms can only win globally if they are in China, but pharma companies, for example, may see things differently."
Many of our members will host HQ visitors in the coming months who may express scepticism about China and want to slow down. While caution is understandable, it can be misguided. Achieving success in today's China requires a sophisticated strategy that embraces risk by evolving with the market. China still offers one of the best opportunities of the decade. Of course, there are risks too, but they can be managed. China CEO Forum members met in February to share ideas on the opportunities and how to effectively communicate them to HQ.
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