15 Nov Innovative China – opportunities for Australian businesses
As China’s rapid transformation continues and domestic demand for consumer services and aged care increases, more and more global markets are reaching into China. China is also becoming a driver of global innovation focused on developing its own new technologies and artificial intelligence.
With the China Australia Free Trade Agreement (ChAFTA) now in place, Australian businesses are well-placed to compete in this evolving and dynamic marketplace. Below we look at three fast-growth Chinese industries that are set to create great export opportunities for Australian businesses. If your business is in a complementary space, it may be time to become ‘China ready’.
- Renewable and New Energy
- Material Science
China is a large market for ‘new energy’, an industry that aims to reduce dependence on fossil fuels and environmental pollution. Large scale financial subsidies have been directed to this industry with the aim of building global leadership in cleaner energy.
One example of success in this area is Chinese automobile manufacturer BYD Auto Co., Ltd (比亚迪汽车), an electric vehicle company backed by Warren Buffett. It is reported that more electric cars are sold in China than in the rest of the world combined, and most of these are Chinese-branded electric vehicles such as BYD.
- Cloud Computing
- Big Data
- Virtual Reality
- Artificial Intelligence
- 3D Technology
- Unmanned Technology and Robotics
It has long been said that one of China’s greatest skills is copying others – from handbags and mobile phones to cars and social media – but one technology which is unique and very much ‘Made in China’ is the WeChat app.
WeChat (微信) is an awesome app – an all in one platform that allows users to chat with friends, do live broadcasts, play video games, share updates, follow organisations, save money and spend money, receive red pockets, book appointments and transport, etc etc – all without leaving the app.
According to the National Bureau of Statistics of China, there are around 211 million millennials in China, which is five times the number in the US. Their top mobile activities include social and communication, mobile shopping, mobile video, mobile banking & payments.
China’s appetite for new technology is only going to grow bigger and bigger. Companies such as Alibaba, Tencent and Huawei are investing heavily in new technologies such as cloud computing, virtual reality for gaming, education medical & sports, big data, and many other futuristic technologies. In the short term, major investments will be made to build an industry supply chain for hardware, content production and distribution platforms.
- Medical Services
- Aged Care
- Biotechnology and Life Sciences
- Medical Instruments
Given China’s growing middle class, there will be a significant increase in demand for better medical services. Additionally according to experts, China’s aging population has been increasing rapidly and is estimated to reach 400 million by the end of 2035. With 240 million Chinese currently aged above 60, there are not enough aged care services to satisfy demand.
With Australia’s world class scientific institutions and health care, there will be opportunities for Australian businesses to contribute to the health and ageing sector. Businesses will be looking to transfer and replicate health services back in China and increase knowledge sharing.
The rapid development of information technology will also see a tremendous change to the health industry – for example online services designed to improve doctor-patient relationships, as well as the development of virtual doctors.
How Accru can help
It’s important to find the right partners when expanding your business into a foreign market. Since the 1980s, Accru has been working hard to build a trusted network of accounting firms to assist our clients globally. We now have many long-standing relationships with associate firms throughout China to help ensure our clients’ entry into the Chinese market is a success. To find out more about how we can assist you on your China journey, please don’t hesitate to contact me or another Accru Asia specialist.