queensland open for business - china market brief
TRANSCRIPT
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Queensland Open for Business – China Market Brief8 October 2015
ZIJIAN ZHANGTrade & Investment Commissioner for China
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Contents
• China Market Spotlight
• Trends and Opportunities
• TIQ China Strategic Plan 2015-16
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China Market Spotlight
• New Normal Model: Transition from investment driven to consumption driven;
• Devaluation of Chinese currency and turbulence of Chinese stock market;
• Serious challenges by growth slowing, environmental pollution, food safety, ongoing anti corruption and its chain reaction.
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Trends & Opportunities
Trade:
- Agribusiness and food supply: strong demanding;
- Ecommerce: fast growing marekt and direct purchasing from overseas
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Agribusiness and Food
• China has been the world’s biggest food retail market since 2012
• China is Australia’s largest agriculture and fisheries market, worth close to $10 billion in 2014.
• Import growing fast for grain, beef, pork and fruits from Qld since 2010
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Catching up with Food opportunities
ChAFTATariffs on most of the agriculatural products exporting from Australia to China will be eliminated, which will give Australia a significant advantage over larger players in the Chinese agriculture market – the US, EU and Canada.
Product A$ million
Beef 722
Sheepmeat 385
Dairy 351
Horticulture 83
Seafood 38
Live animal 142
Wine 217
Australian Export to China 2013 TARIFF
EXPORT
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Catching up with Food opportunities
7.5-30%4-7 Years
12-25%9 Years
12-23%8 Years
15%9 Years
10-30%8 Years
10-25%4 Years
14-20%4 Years
14%4 Years
10%4 Years
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Top 10 imported foods@Tmallby country of origins
16%
12.40%8.90%
7.10%
6.50%
5.50%4.50%
4.30% 4.10% 3.40%
Country of Origins
Republic of Korea
Hong Kong&Macau
Vietnam
Malaysia
Italy
Germany
Thailand
France
Indonesia
New Zealand
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Orders of imported foods@Tmail by cities
19%
24%
12% 23%
8%
8%
6%
1st Tier Cities
New 1st Tier Cities
2nd Tier Cities
3rd Tier Cities
4th Tier Cities
5th Tier Cities
Others
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Trends & Opportunities
Investment:
- One Belt and One Road Initiative;
- Ongoing overseas investment focusing on agri and property development
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China’s Outbound Direct Investment
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China’s Outbound Direct Investment
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One Belt One Road
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Rise of Privately Owned Enterprised – China’s New ForceWith the growing strength of Chinese POEs and the government’s support for “going out”, a smaller proportion of China’s increasing outward FDI is coming from SOEs. By the end of 2013, China’s outward FDI of non-SOEs accounted for 44.8% of China’s total accumulated outward FDI value, and their outflow comprised 56.1% of the total outflow of 2013.
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M&A Rush in Real Estate and Construction
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M&A Rush in Agribusiness and Food
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M&A Rush in Energy and Mining
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Main Risks Faced by the Chinese Companies
• Political Risk in host countries;• Intitutional Risk such as legal and taxation;• Lack of strategic planning;• Weak of local cultural understanding and
integration;• Lack of international professionals
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TIQ China Strategic Plan 2015 -16
• Qld Premier’s visit to China in Sept, 2015
• Chinese buyers mission to Qld in Sept, 2015
• Qld food mission to FHC, Shanghai , Nov 2015
• Initiating investment missions to Qld focusing on agribusiness and tourism facilities development in 2015 /16
• Queensland Government ministerial missions to China 2015/16
• Chinese business migration / investment mission to Queensland, in 2015 /16
• Regular investment / business migration promotion workshops in various cities 2015-16
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TIQ China Office look forward to working with you
Q&A section