According to China's 13th Five-Year Plan (2016-2020) approved by the National People's Congress in March 2016, the aim is a more sustainable and open economy to ensure more frequent cross-border business activities and growing oversea cooperation possibilities for China and Chinese firms. According to Thomson Reuters, up until 20 June 2016, the total cross border merger and acquisitions in China reached a record high amount of $111.6 billion, more than that of the entire year of 2015 ($111.5 billion); the oversea purchasing by Chinese firms mounted to $82.2 billion.
Total cross border M&A in China
As at 22 June 2016 China is ranked as the no.1 player representing 20.8% of the total international cross border M&A, with Germany in the second place with 16.1% and USA in the third place with 11.8%.
The economic tie between China and Denmark has never been closer. According to Danmarks Statistik, in 2015, the amount of bilateral goods and service trade between China and Denmark mounted to a record high of DKK 116.6 billion, with a growth rate of 6% compared to the previous year and the amount of export to China tripled in the last ten years to DKK.
For Denmark, China has already become the largest trade partner in Asia and the second largest oversea investment destination. In terms of trade volume per capita with China, Denmark, Germany and Holland are the top three countries in the European Union, with Denmark DKK 20,079 in 2015. So far, approximately 500 Danish enterprises have established branches or subsidiaries in China.
Understanding the Chinese government structure and your industry and being familiar with Chinese business etiquette and culture is imperative to success.
Globalization does affect China in a way. However China is taking action to maintain the economic growth such as laying out some policies related to the foreign investment to boost the national economy. This CEO survey report comes from PWC which comprehensively reveals that China could be the main stage for market entry. Moreover CEOs emphasize the recent problem about talent gap which can be solved by man and machine work together and it could be a long way to go. Yet finding an agency can be one of the best ways to narrow the talent gap. Talent Spot can help you with your HR solutions in China as well as Asia Pacific Region includes Singapore, Hong Kong, Taiwan, Japan, Korea, Thailand and Vietnam.