The 2024 Understanding China Conference Report is out, with major takeaways from the brilliant presentations given by the speakers on hashtagChina‘s economy, policy shifts, industries in focus, and hashtagSME-specific considerations.
Speakers highlighted China’s ongoing economic transition from a traditional growth model—dominated by housing, infrastructure, and consumption—to one driven by “new quality productive forces,” a term encompassing high-tech industries. This shift has been particularly evident in the downturn of the real estate sector, with investments now channelling toward manufacturing.
Accounting for 29% of global hashtagmanufacturing but only 18% of global consumption, China has accumulated significant overcapacity in recent years, leading to an influx of exports to Europe and fierce competition within its domestic market.
The Conference also delved into the top challenges cited by European hashtagSMEs, including the intense competition in the market, alongside obstacles such as limited access to financing, burdensome administrative procedures, hashtagIPR implementation concerns, difficulties in talent acquisition, and the complex requirements of the hashtaggreentransition and the hashtagdigitaltransition. Analysts emphasised that these transitions are key drivers for European SMEs in China, with hashtaggreentechnologies and hashtagdigitalisation offering potential opportunities despite their challenges.
Extensive discussions centered on hashtaggreentech, with analysts noting China’s dual role as the world’s largest CO2 emitter and fastest-growing market for renewables. In 2023, solar and wind power made up 84% of all new grid-connected capacity in China.
Digitalisation also remains a critical issue for SMEs, though conditions have recently improved following the Cyberspace Administration of China’s Regulations on Promoting and Regulating hashtagCrossborderData Flow, effective in March 2024. These regulations have eased compliance for SMEs by reducing the data export burden, improving the overall operating environment for European businesses navigating China’s complex regulatory landscape.
Download the full report and stream the video recording of this year’s sessions: https://lnkd.in/epG8Pqzr
