Most of the economic news coming out of China has been bleak. The economy isn’t growing. Labor costs are increasing. Local governments are facing huge debt burdens. While these statements may be true, they are not the whole story—or even most of it—as explained by Xingbin Li, AMT – The Association For Manufacturing Technology’s International Director for the Asia Pacific Region.
Despite ongoing economic challenges, there are significant business opportunities in China’s tier 2 cities and previously untapped markets, Li said during a recent chat with IMTSTV. Arguing that the fundamentals of the Chinese economy remain strong, Li highlighted a long list of potential opportunities outside major metropolitan areas, or Tier 1 cities.
What Li referred to as Tier 2 cities are often located in remote areas, but they are major industrial hubs. For instance, Chongqing may not be well known to most Americans, but it produces more than 32 million units of cars, trucks and buses every year; one out of every three laptop computers in the world; and 50 percent of all the motorcycles made in China. AMT members should not overlook Tianjin and other tier 2 cities when searching for business opportunities, Li argued.
Several regulatory reforms, as well as new government initiatives, are also improving manufacturing technology prospects in China. Li cited the “Made in China 2025” initiative, which is encouraging manufacturers to upgrade their facilities to make more high-end products. This means more opportunities for overseas suppliers of advanced machines and technologies.
With a little research and a bit of marketing, Li noted, many AMT members can find a new market for their existing products in China.
For more information about the wide array of international services offered by AMT to help members expand and improve their operations around the globe, including in China, please visit the Global Support section of AMT’s Website.
AMT and the China Machine Tool and Tool Builders' Association (CMTBA) announced in April the launch of the China Chongqing International Machine Tool Show (CCIMT) to be held November 13 – 16, 2017, at the Chongqing International Expo Center, Yubei, Chongqing, China. Find out more in the joint AMT and CMTBA press release.