China will be the world’s first economy after the global recovery from COVID-19. So, it is becoming more and more striking to start business with this country, in any of both ways: import and export. It takes curiosity, interest and risk knowing this market, as well as opening a different frontier from the current one.
Chinese market is not as far away as it seems, are the regulations that distance it, as well as companies that do not know how to deal with them or be strategic enough to manage to do intermediation work between both parties, or get informed daily about a civilization that reinvents itself day after day at an impressive speed.
China has had new modernizations, which could become obstacles for our country, such as strengthening the null use of cash, using the cell phone to pay for food, taxis, get credit, etc. Digitization has been such in the country that the company Didi is currently venturing into driverless taxis in Shanghai.
Only the IMF said that China’s financial technology sector could be instrumental in helping SMEs acquire reliable credit that will play a key role in helping companies overcome the COVID-19 outbreak and the resulting challenges.
Although little by little, Mexico is digitizing, we are light years away from being like them, and this may cause obstacles. Much of what is in international trade does not happen for fear that the counterparty does not comply, which causes the greatest problem that prevents further growth in world trade, and which could be solved with greater digitization. This would mean for our country to enter an urgent digitization phase to negotiate directly and quickly.
The opportunities to see China are much greater than the risks. There are 1.4 billion people and the growth of the Chinese middle class is exponential. China is currently highly capitalized with 4.1% of the assets of world funds in its coffers. Its emerging investment sector continues despite the global recession. China is now the third largest asset management market in the world, although its country asset base is expected to increase from $ 5.3 trillion to $ 9 trillion by 2023.
Every year, given the growth of a middle class in the country, more people are beginning to consume more products, goods, and services, and these are opportunities to be seized. China does not buy in small volumes, but in huge levels. Once they find suppliers, the same Chinese importers recommend them to their peers.
Few companies, like us, have in their structure founders from both countries. Which helps enormously when doing business with China, since relations and capabilities in both countries are facilitated, one can even speak of a higher success rate in our operations.