China’s leaders are instituting a new industrial revolution with robotics at the centre, and are inviting investors from outside countries. But what’s it like to enter the dragon with your money? In this article, China-based investment expert Edward Tse, CEO of Gao Feng, outlines some things to consider
Broadly speaking, there are now three distinct groups of multinational companies (MNCs) in China we can classify according to their market views.
The first group includes MNCs who have come to China, made investments and being unsuccessful, decided that China is not their cup of tea. They generally found it difficult to be profitable and some have withdrawn from China.
The second group of companies are those operating in sectors with overcapacity – often quite significant ones – in China. These companies are typically in a wait-and-see mode, waiting to see if and when the overcapacity may be managed away.
The final group of companies are those who have found China to be a major, and often highly profitable, market. For them, China is one of their largest, if not the largest market in the world. [Read more…] about Investing in China: A quick step into the robotics and automation revolution