THE FILLED PROGRAMME included everything from hands-on tips and advices when setting up business in China as well as contemporary social and environmental analysis and financial information.
FRÉDÉRIC CHO, Asia Manager at HQ Bank was first in line and spoke about his positive view on China’s development.
– In the last 25 years, Chinese BNP growth has been more than 9 percent annually, which is very unique. Many factors indicate that this growth will continue. China is getting a better credit rating, has large currency reserves and with a growing middle class, domestic consumption is increasing.
Urbanisation is also extending. According to Frédéric Cho, 15-20 million Chinese per year will move to the cities by 2020. This will result in increased demand for raw material, steel, cement and much more.
THE LEGAL FRAMEWORK is challenging for foreign companies when
setting up business in China. It is complicated and hard to grasp, says Fredrik Hähnel, Senior Vice President at SEB Shanghai, speaking from his own experience.
– In the financial sector, rules are changed all the time, especially currency regulations. It is not easy to keep updated. As a Nordic bank we assist Swedish companies in keeping clients updated as well as interpreting rules, says Fredrik Hähnel.
Fredrik Hähnel spoke about how to finance a quick expansion in China, techniques to eliminate currency risks and how to make a profit in China.
CHINA IS BECOMING the world’s largest market and many companies realise the necessity of being represented in China to benefit from advantages and opportunities. However, simultaneous with opportunities, risks are significant and as a foreign entrepreneur you may make the wrong decision. When Trelleborg AB entered the Chinese market, end of the 80’s, China was still unexploited and a new market for Swedish companies. Mikael Jonson worked at Trelleborg during this time and spoke about all of the faux pas they made.
– We learnt that when starting a joint venture with Chinese companies; you need to choose your counterpart carefully. To succeed it is essential to be able to trust your counterpart. Choosing the right partner is also important in Chinese manufacturing and sourcing. In a little more than 20 years in China, Mikael Jonson learnt that you need local support who understands the conditions in the new market. In addition, you must be careful when evaluating suppliers for investments.
EVEN THOUGH SPEAKERS at the seminar talked about many different areas, there was one common denominator, ie relations.
– Relations mean a lot when doing business, stressed Thomas Lagerqvist, Resident Partner at Mannheimer Swartling in Hong Kong.
– You need good relations and invest in personal relations to succeed in China, agreed Mikael Jonson.
Thomas Lagerqvist Emelie Ring