China RECON: Competition
THE RISE OF CHINA IS CHANGING THE NATURE OF COMPETITION
- Companies in sectors that China has deemed ‘strategic’ will face intensifying competition from Chinese firms.
- Support for State Owned Enterprises and privately owned ‘national champions’ will increase, not only in China but in international markets with state-led finance and geopolitical support.
- Many Chinese firms that may not be considered ‘global leaders’ today will benefit from state financial and political support with subsidized financing to acquire technology and resources to increase markets share.
- Foreign firms will face greater headwinds in China, which will favor domestic players, while government export promotions will challenge players abroad in other key markets.
CHINA HAS IDENTIFIED TEN SECTORS TO MASTER IN THE NEXT DECADE
Beijing’s ‘Made in China 2025’ program seeks to make China the world’s preeminent manufacturing power, mastering ten strategic sectors.
Next generation information technology
High-end machine tools and robotics
Space and aerospace equipment
Marine engineering equipment and high-tech ships
Advanced rail transportation equipment
Energy-saving and new energy vehicles
Electric power equipment
Agricultural machinery equipment
Biomedical and high-performance medical devices
Superior planning to capture opportunity and prevent losses
Exposing internal assumptions and biases leads to better planning which leads to better decision making to realize marketplace opportunities and mitigate losses.
A constructive opposing opinion improves internal planning with strategies to manage uncertainty.
Investors and business leaders gain confidence executing their investment thesis and plans.
WE DELIVER A COMPETITIVE ASSESSMENT ON STATE SUPPORT FOR CHINESE COMPANIES
China Competition Reconnaissance follows developments across major industries that receive government support which is slowly transforming competition for multinational firms.
We understand China’s national strategy and how Chinese firms play a critical role in Beijing’s long-term plan.
Clients gain insight from our analysis on developments in China’s strategic sectors on a regular basis via regular in-person briefings.
To learn more, please email us at firstname.lastname@example.org