Could conquering China be the key for UK SMEs?
China could become the world’s largest economy in the not-too-distant future and it could represent a fantastic opportunity for many UK SMEs to expand their boundaries.
Exports are important in the development of SMEs and creating links with an economy that is experiencing rapid growth has a number of positives.
It also reduces the financial hardship being faced by many SMEs in the current climate, which is consequently driving some to administration and emergency corporate restructuring methods.
The economy in the Far East has experienced phenomenal growth across the last three decades and although this is expected to slow, the rate of change continues to remain high.
Currently, the growth target set by the Chinese government for 2014 stands at 7% and while this is lower than the rate experienced in recent years; it is still higher than most regions of the world.
The pursuit of growth
Growth is occurring outside of the well-known big cities and it means there are many opportunities in places that were previously unknown to many British companies.
The government in China is very keen to ensure targets are met across the whole country – totalling almost one billion square kilometeres.
Therefore it represents a fantastic opportunity for British SMEs looking to expand their finance options, although it is accompanied by some risk.
The speed of the market could leave unprepared SMEs behind, but for many on the verge of wide-scale business restructuring as a result of the recession, it is a risk worth taking.
One of the key things to ensure is that the SMEs who do enter the market have the capability to deliver on their plans.
With assistance on offer from the China-Britain Business Council and UK Trade and Investment, conditions have never been better for SMEs looking to conquer China.
By Phil Smith