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.

 

Will Foreign Suppliers Benefit from Tightening Standards in China’s Tank & Pipeline Safety Equipment Market?

This article is based on a GCiS multi-client report: China Tank and Pipeline Safety Equipment Market Research Report.

One side-effect of China’s huge and growing thirst for energy is a large market for tank and pipeline construction in the country, including a substantial market for tank and pipeline safety equipment. Thanks to their lower prices and the domination of key customer industries by large state-owned players, a large majority of the flame arresters and breather valves sold in China currently come from domestic companies. But will tightening enforcement of China’s quality standards lead to more opportunities for foreign suppliers?

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China’s Servo Motor Suppliers see Light at the End of the Tunnel

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

2012 was, all things considered, a rather poor year for industrial servo motor suppliers in China. Hit by weakening demand across a range of downstream industries, virtually every player in this industry saw lower revenues than the previous year – market research and advisory firm GCiS China Strategic Research estimates an average fall of around 8% compared to 2011. Revenues are falling across all market categories, with a particularly strong decline in lower-power motors.

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Market Trends: China’s Silicone Sealant Market

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

In the September 2013 issue of Adhesives and Sealants Industry Magazine, we discuss the position of foreign and domestic suppliers in China's market for neutral silicone sealants. Local suppliers' lower average prices, has allowed them to dominate the low end of the market and take the lion's share of mid-range revenues. Foreign suppliers like Dow Corning are still holding on to a strong fraction of the market for high-end sealants, but domestic companies are improving their quality year on year. 

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At a Glance: The Chinese membrane market

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

In the July/August 2013 Edition of Water and Wastewater Magazine, we discuss the market for filtration membranes in China and explain how sales of these membranes will remain robust over the next few years, due to downstream demand and favorable market conditions.

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Why are Foreign Companies Growing Slower in China?

Weakness in One Sector in Particular Provides Part of the Answer

A recent finding from the GCiS Research Data Set shows that over the past 4 years, starting in 2008, domestic Chinese companies have grown significantly faster than foreign-invested companies. This includes both private as well as state owned Chinese firms (SOEs). Heading into 2012, FEI’s (foreign invested companies, including WOFE and JV) were growing significantly slower than Chinese companies.

One reads almost daily how much this or that MNC is having record sales in China, though it bears keeping in mind that in many cases this is not because the company has gained market share in China, but because the economy has grown so fast over the past 10-15 years. Just since the year 2000, China has added over RMB 40 trn in GDP (nominal), or nearly USD 7 trillion at current exchange rates. Certainly some foreign companies have had great success in China above and beyond GDP growth- GM and Apple come to mind. Though in many cases this has been momentum growth, with growth actually below GDP or sector rates. The chart shows that at the start of the period FEI’s were growing at about average (for industrial markets), though this has slowed by 2%, while the rate of Chinese firms has increased.

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