During this week two events linked to China and Italy happened. The first is the visit of Italian President Sergio Mattarella and his meeting with the Chinese President Xi Jinping. The second was the fourth China – Italy Business Forum, particularly important for the whole Italian-System, and with some good news for the Italian Start-up world.
Tech Silu had the chance to be one of the 250 enterprises that took part in the forum. This is the sum up of what we believe are the best insights for Italian start-ups that are looking to expand abroad and are considering China as a possible market. If you are not taking into account to move into the Chinese market, we also urge you to read this article and reconsider your position.
1. Sino-Italian relationships are better and better
First of all, it is important to understand that the relation between Italy and China were never better.
During the last few months, the relationship between the two countries had a great boost. No only due to the meeting between Renzi and Xi Jinping during the Hangzhou G20 event, but also the decision of the Chinese President to stop in Sardinia on his way to Davos.
The trip of President Mattarella to China is the first visit of a Head of State in China during the year of the rooster, stressing the constant improvement of the Sino-Italian relationship.
Besides the meeting between the two Presidents, the fourth Sino-Italian Business Forum took place and it saw the presence of the Undersecretary of the Ministry of Economic Development (MiSE), Ivan Scalfarotto, who came to China for the fifth time in seven months.
This two country relationship is expected to improve even more, thanks to the so-called “road to 50”, a program that will lead to the 50th anniversary of diplomatic relations between China and Italy in 2020.
2. The 13th five-year plan (2016-2020)
China is big on planning. Every five years, China drafts a five-year plan that allows being clear on which are the key sector to be developed.
Within this plan, it is clear that China is moving from a low-cost & low-quality producer to an high-tech maker. So we can see indicators like:
- Improving the developing strategy
- focusing on a new “industrial revolution”
- supporting green tech and environmentally friendly production
- promote innovation
- and many others
To the start-ups, it is a great chance to enter the Chinese market, especially because of China focus on innovation and disruptive ideas, not only as a theory, but as an application in many sectors and within the new production system.
Just to be clear about how serious China is about innovation, we should take into account the amount that is investing in R&D: 200 billion USD / year.
3. Made in China 2025
China has a clear vision and so should your Start-up. This means that China is not only planning five years at a time, but it has longer plans. The most famous are Made in China 2025, along with Internet Plus. This means that the sectors which will receive a particular attention in China are:
- Industry 4.0
- Information Technology
- Internet of Things (IoT)
- Big Data
It is interesting to mention that IoT it is expected to be a 500 billion dollars sector within 2030.
4. Hot industries in future China
Thanks to the whole planning that China is doing, it is clear that in the net few year the hottest areas of interest are going to be:
- Green Energy
- Green Mobility
- Green Tech, sustainable development and circular economy
- Urbanization, especially “green cities” and “smart cities”
- Health and medical
- Food security
- Care of elderlies
- plus the areas already mentioned in the previous list.
5. How to start your venture in China?
Because of all the above, this is the best period for start-ups to move into the Chinese market. But we know first-hand that doing business with and within China can be hard. To take out the hard part and give you all the instruments to do what you do better: your business, we at Tech Silu launched the program ChinaLab. Join this program and let us help you in analyzing the Chinese market for you, doing market research, help you tweak your Business Plan and Sales&Marketing Strategy to better fit into the Chinese Market.
Changing slightly a way of saying about the right time to plant a tree, let me say that
“the best time to take your business to China was 20 years ago. The second best time is now”, I would also add “the smartest choice is doing that with Tech Silu”.