HSBC Navigator: Growing with China
Back to Navigator – Resilience: building back betterInternational businesses remain bullish on their China prospects
Neither the Covid-19 pandemic nor rising geopolitical tensions have dimmed China’s attraction as both a destination market and a key player in global supply chains.
We spoke to 1,100 companies across 11 key markets – Australia, Canada, France, Germany, Hong Kong SAR, Malaysia, Mexico, Singapore, UAE, UK, and USA.
China‘s early recovery from the Covid-19 pandemic is fuelling optimism among companies across the world, with 75 per cent of the companies surveyed expecting sales in or exports to China to grow in the next two years.
Much of the optimism and ambition over the Chinese market is down to the mainland’s early recovery from the pandemic and its relatively strong demand compared to other markets. The country’s vast market and its unrivalled manufacturing infrastructure remain compelling reasons not just to maintain business with China, but in many cases to increase it.
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Manufacturing is to stay
China’s pivotal role in global supply chains has proven durable. The survey shows that, contrary to some commentary, many companies are in fact increasing their exposure to the country.
75%
of companies said they expect to increase their supply-chain footprint in China over the next two years
The role of technology
44%
of businesses are looking to strengthen their digital presence within China by upgrading their technology or e-commerce platforms
Businesses recognise that the pandemic has accelerated the pace of technology adoption and that they need to join the race if they are to compete.
Where’s the growth
Companies foresee a broad-based recovery across the Chinese economy, but are noticeably more optimistic about the outlook for service industries over the next 24 months, high-tech products and services, consumer electronics and appliances, medical equipment and medical care products.
54%
of companies ranked services, particularly high-tech services, as the number one growth area over the next two years.
Find out more about Navigator – Resilience: Building Back Better
2020 Navigator China Report
Navigator 2020 survey: Over 80% of businesses in mainland China are positive about the outlook of international trade in the next 2 years
