China Insights

GCiS shares a mix of China economy and business observations, industry articles based on recently published multi-client reports, infographics composed with public statistics and annual reviews of China demographics.

 

Are there Still Opportunities for Foreign Firms in China?

Yes, in Many Markets- But these are Shifting

When a few years back markets in China were growing by 10-20% per year or more, and a large number of MNCs were making double digit growth, most would say that opportunities in this market were strong.

Now the situation has changed noticeably, with slower growth in the economy as a whole, and much slower growth in the industries that were driving this growth. This comprises the construction market as well as heavy industries such as chemicals, machinery, cement, etc. This is compounded by real or perceived unfairness by the Chinese government in market access and subsidies to local companies, and lastly the fact that leading local firms have demonstrably improved their product and have closed the product/technology gap in a range of markets.

These combination of factors, along with the normal operating headaches, have led many foreign firms to conclude that their opportunities in China have taken a strong negative turn. Internal surveys by Amcham and EuroCham both echo this sentiment. Is this an accurate statement, or more a matter of perception?

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Compressed Growth in the China Market

This article is based on a GCiS multi-client report: China Stationary Air Compressors Market Research Report.

A large domestic market and a smaller export market are both features of the Stationary Air Compressor (SAC) market in China. The best prospects are for screw SACs, but with a general slowdown across all end-user industries, SAC suppliers should look to boost efficiency rather than grow.

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Printing Ink in China

This article is based on a GCiS multi-client report: China Inks Market Research Report.

The purpose of this article is to gauge the potential growth of China’s ink market and to propose if there are still significant potential opportunities for businesses to thrive in this sector. To answer this, this article will focus on three main aspects: Market trends, existing competition and driving vs. inhibiting forces.

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Sealed in Stability

This article is based on a GCiS multi-client report: China Sealants Market Research Report.

Steady growth and medium-term opportunities make this a market worth paying attention to. Despite challenges from domestic companies, there are still opportunities to be had by expanding to high-growth end-user industries, and producing high-quality products.

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Industrial Diesel Engines Suppliers Expect Lukewarm Future Market Prospects in China

This article is based on a GCiS multi-client report: China Diesel Engines Market Research Report.

Over the last few years, the growth of China's industrial diesel engines market has experienced a marked decline. According to a recent report from GCiS China Strategic Research, overall market growth was just 4.3% in 2013 to a RMB 112.7 Bn, or USD 18 Bn, market, which covers engineering machinery diesel engines, marine diesel engines, diesel engines used in generator sets, and downhole diesel engines. Industry insiders report that the recent slow growth is largely a result of difficulties in the shipbuilding and construction sectors, although none of the key end user industries are experiencing impressive growth from a target product sales standpoint.

Growth rates are not expected to rise dramatically in the foreseeable future, and while overall growth is expected to level off after peaking in late 2015, growth is expected to remain at a higher equilibrium than 2013 levels. This trend will largely be shaped by the shipbuilding industry, which is expected to make a brief resurgence, as well as sluggish but steady development across the majority of end user industries.

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