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.


Market Trends: China Is a Hot-Melt Adhesives Hot Spot

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

From the construction of King Tut’s tomb during the time of the pharaohs, to ensuring the airtight bonding of planks while shipbuilding by the Romans, adhesives have served numerous applications—and made their mark on history. With the invention of thermoplastic adhesives, more commonly known as hot-melt adhesives (HMAs) occurring only 70 years ago by Procter and Gamble, the industry has undergone large transformations from its roots in ancient civilization. In the Chinese domestic marketplace, recent economic trends, consumer behavior, and developments to product technology and delivery systems have all merged to shape the hot-melt adhesives market.

Read more ...

Phosphorus-based Flame Retardant Market in China Poised for Strong Growth

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

China continues to play a prominent role in the global flame retardant chemical market in terms of production, domestic consumption as well as direct exports, and is expected to lead in global market growth. Locally produced phosphorus flame retardant chemical is gradually replacing previously popular halogen-containing chemicals in a broad range of applications, particularly in the plastics and rubber sector. Consumption of inorganic flame retardant is also on the rise.

Read more ...

The Gradual Market Expansion of China’s CNC Metal-Cutting Machine Industry

This article is based on a GCiS multi-client report: China CNC Metal Cutting Machine Tools Market Research Report

As China moves away from its legacy of lower end manufactures and modernizes large swathes of its production capacity, the market for quality CNC metal-cutting machine tools is expected to grow over the long run, though the market will take some time to pick up. Historically, China’s broad manufacturing sector has been driven by domestically manufactured machine tools, but a shift in higher quality products necessitates a shift towards higher quality production methods and equipment. While foreign machinery suppliers have worked to address this demand, domestic suppliers have upgraded their offerings and continue to account for the vast majority of CNC machine tool sales in China. Over the next several years, will increasing demands for higher quality production lead to more opportunities for foreign suppliers?

Read more ...

The New Normal in China for MNC’s: Attrition

MNC’s To Get a Smaller Share of a Much Bigger Market

Again the organizing concept for MNC’s in China is shifting. Whereas once the focus was on setting up, and quick expansion, now this should move to standard business development. The “land rush” is over, and now to borrow agricultural imagery its time to till the soil and produce good crops. Of course land rushes are far more exiting than farming, so there are complaints that growth is much slower than it used to be, and that some government practices and policies are unfair. At the same time, growth is slower than it was in the boom years around 2004-2010, with current official GDP growth rates at about 7%, and true growth likely even slower than this, in the range of 3-5%. In sum, for some of the shine has some off the China market.

While there may be some reason to complain, the fact is that the most recent 10-15 years represented an ideal period for foreign businesses in China: very fast development combined with relatively open access, and an under-developed set of domestic competitors, depending on the market. In the past several years though, these have all begun to change, with greater focus on compliance, stronger domestic players, and slowing growth. As a result MNCs are in effect being squeezed, with many losing market share in their target industries. Much of this though comes down to the natural progression of China’s development, rather than actions by the Chinese government.

Read more ...

Anti-Corrosion Coating Suppliers Positive on Future Market Prospects in China

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

Over the last few years, the growth of China's anti-corrosion coatings market has dropped precipitously. According to a recent report from GCiS China Strategic research, overall market growth was just 2.8% in 2013 to a RMB 36 Bn or roughly USD 5.8 Bn market - far worse than the 13% growth experienced as recently as 2011. However, both domestic and multinational companies expect conditions to improve significantly over the next few years, pointing to developments below the surface of this headline growth figure. Industry insiders report that the recent slow growth is largely a result of difficulties in the shipbuilding and container sector, while other major end-user industry segments such as construction and petrochemicals are seeing much stronger performance. Improving technology and mounting domestic demand for high-quality products, alongside a likely future revival of the shipbuilding sector, are likely to lead to much healthier growth rates in approximately three to five years.

Read more ...