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Explore the opportunities and challenges in China's service sector through the lens of economic history and current trade data. Discover the potential of the domestic and international markets, and understand the obstacles faced by foreign companies. Talk to us at iceCo.XENON for expert insights.
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China Service Sector: Opportunities & Challenges Yang Li Trade Representative Embassy of Iceland, Beijing
Controversies about China • China Miracle vs China Collapse • China Threats vs China Opportunities
China Economic History in the World % of GDP 40% 35% 30% 25% 20% 15% 10% 5% 0% Opium War 1839-1842 Second Opium War 1856-1860 Invasion of Allied Armies 1900 Japanese invasion1937-1945 Civil War 1945-1949 Cultural Revolution 1966-1976 Opening-up & Reform 1978 1700 1820 1830 1850 1900 1950 1978 2000 2005 2010
China Economic Growth 27 Peaceful Years of 9% Average Annual Growth 20-30 More Years of 8-10% Growth expected
Great Potentials • Domestic Market: 1. Market potential 2. Fast development 3. Minimum market share for foreign companies 4. Wider market opening
Obstacles • Insufficient legislation: Monopoly & governmental effort • Sector and regional imbalance • Cultural factors • Long-term strategy: Fish-go vs Sow-harvest
China multitude: the Very Basic The margins 20 million people GDP: USD 110bn The Rust Belt 110 million people GDP: USD 120 bn The Coast 375 million people GDP: USD 550 bn The Hinterland 580 million GDP: 400bn The Diaspora 55 million people GDP: USD 1000bn
Opportunities & Challenges ? Know the enemy and know yourself; in a hundred battles, you will never be defeated --Sun Wu, 551 – 479 B.C. • How much do I know about the sector • Where are the customers & competitors • Do I have the resources • Is it the right time • Do I have the time frame • ….
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