Lim Jisu from the Republic of Korea (ROK), head of NUC Electronics China Co., Ltd., is busy preparing for his 20th trip to the Canton Fair to be held in the southern Chinese city of Guangzhou this October.
In November, Lim plans to bring his company’s latest juicer to the second China International Import Expo (CIIE) in Shanghai. “The Chinese market contributes to less than 10 percent of our sales revenue and there is still huge potential,” he said.
Lim is among a large number of foreign entrepreneurs who have flocked to China to seek market opportunities as the country keeps expanding its market.
ROK-headquartered NUC Electronics has witnessed China’s further opening-up over the past decade.
Lim said his company first participated in the Canton Fair, China’s oldest and largest trade fair that more focuses on exports, in 2008 and entered the Chinese market three years later.
“By 2017, we had developed distribution channels in about 10 provincial-level regions across China,” Lim said. “But we managed to tap into the markets of another five at the first CIIE last year,” he said, adding that he expects even better results for the second CIIE this year.
China launched the world’s first import-themed national-level expo last year, further opening up its market to businesses from around the world.
French cosmetic giant L’Oreal plans to introduce more products into the Chinese market after participating in the first CIIE.
“Chinese consumers have shown a strong demand for high-quality, individualized cosmetic products, so we are planning to showcase more than 1,000 kinds of products at this year’s CIIE in an exhibition area twice as large as that of last year,”
said Jin Jing, a senior public affairs manager with L’Oreal China.
Bai Ming, an expert with a research institute affiliated with the Commerce Ministry, said Chinese people’s consumption upgrade will bring more opportunities to foreign enterprises.
Over 3,000 enterprises from about 150 countries and regions have signed up for the second CIIE between Nov. 5 and 10, seeking to cash in on the rising purchasing power of Chinese consumers.
China’s per capita disposable income reached 28,228 yuan (3,960 U.S. dollars) in 2018, increasing nearly 60 times from that in 1949 calculated at comparable prices, according to the National Bureau of Statistics.
Shanghai Artemed Hospital, a German business-funded hospital, opened on Sept. 26 in the Shanghai free trade zone (FTZ), China’s first free trade zone launched in 2013.
It was among the first group of foreign-funded medical institutions the Shanghai FTZ, home to Tesla’s China Gigafactory, introduced as it opened the sector to overseas investors.
China has so far established 18 FTZs across the country. The zones have served as the testing grounds for new rules and regulations to facilitate trade and investment and improve the business environment that would later be replicated nationwide.
Sun Yuanxin, a professor with Shanghai University of Finance and Economics, said China’s FTZs will help promote China’s reform and opening-up and bring the country’s business environment on par with the world’s advanced level.
Also in 2013, China proposed the Belt & Road Initiative (BRI), aimed at building a trade and infrastructure network connecting Asia with other parts of the world.
In less than six years, the BRI has become a platform of opportunities and a road to prosperity for all its participants. So far, China has signed cooperation documents with more than 160 countries and international organizations.
From 2013 to 2018, the trade volume between China and other Belt and Road countries surpassed 6 trillion dollars, and Chinese businesses’ direct investment in those countries exceeded 90 billion dollars, official data showed.
China, with huge market potential, is becoming one of the most open and inclusive markets in the world, and its contribution to global economic growth is increasing, said Juan Carlos Dominguez, head of ChilePork, the national producers’ association of the Latin American country.