Get used to “create in China”.

Since Xi Jinping took office, China has started to see some big changes. It is not only the fight against corruption, nor the further institutionalisation of the rule of law, but also the rearrangement of the productive structure. Just like President Xi has expressed it in several occasions, China is transiting from the “made in China” to “created in China”.

Innovation has been an increasing tendency in the country since 2005. Step by step, more entrepreneurs are coming out with revolutionary ideas. Simultaneously, the fast-paced growth of the economy since the 1980s has created a group of investors that are now looking to diversify their capital among these new ideas.

It is rather certain that 2015 will be a year of slow growth. What for many countries could be a tragedy, in China is an opportunity. This year is the perfect moment to come and cultivate new entrepreneurship in the country. Investors will be keen on support good and interesting projects, while labour market constraints will encourage self-employment initiatives, and eventually a relaxation on small companies’ creation.

Integration is the key

This opportunity is not only for the Chinese audience. Despite of China having quite a native push to develop small businesses, the experience and knowledge at the other side of the Pacific may be well valued. Hence, and integration between Chinese investors, industries, and teams, with foreign ideas, entrepreneurial culture, and even markets, presents a very promising scenario for both sides.

Now, the big question is… what sort of opportunities? In this regard, most analysts agree on three major areas of development.

Internet-based platforms.

It is no secret that in our day and age, Internet could be a real money-maker. Jack Ma really hit the jackpot with his all-powerful Alibaba, and the whole system of B2B and B2C services that grew from there. But is not all said yet, and there is much space to conquest. Outwards, China has much to offer with their rich experience in the field, that goes from getting your groceries, clothing, and even medicine online; to the possibility of calling for a taxi and pay for the ride, all with a couple of taps on your mobile’s screen. Nevertheless, all of these service are mostly limited on the B2C side, as the main concern in the country is boosting domestic consumption. And here comes the opportunity, as an arrival of fresh ideas and expertise, particularly on social development solutions, could really bring up the game.

Prototypes.

DJI Phantom Quadcopters are today widely use among photo and video enthusiasts and professionals alike, all around the world! That is the level of development possible to reach today in China. This should be a wake-up call for all creative around the world, because this is the way dreams can become reality. Areas like home automation, health, and education IT’s are getting a lot of interest from investors and consumers.

Renewable energy.

Last but not least, we must acknowledge the huge growth of this sector in Chinese manufacturing. China is steadily going to become the largest market for renewable-energy technology, and it already has some of the biggest companies in the sector. This is not an opportunity only for trade, but mostly for those innovators with interest on international cooperation.

2015 will be the year to promote “created in China”. It does not mean that the country will close its door to foreign ideas, but the opposite. President Xi has insisted on the need for more knowledge, initiatives, and cooperation. Furthermore, institutionally, the new regulations on visas, economic, and educational exchange are solid signs of a serious concern over growing in quality.

Sources:

Kuo, Kaiser, and Jeremy Goldkorn. Innovation in China. ChinaFile, retrieved 30 Jan. 15, http://www.chinafile.com/library/sinica-podcast/innovation-china

Orr, Gordon, and Erik Roth. A CEO’s guide to innovation in China. McKinsey Quarterly, retrieved 25 Jan. 2015, http://www.mckinsey.com/insights/asia-pacific/a_ceos_guide_to_innovation_in_china

Orr, Gordon. 9 ways the Chinese government promotes innovation. Gordon’s View, retrieved 30 Jan. 15, http://www.mckinseychina.com/9-ways-the-chinese-government-promotes-innovation/

Orr, Gordon. Chinese innovation has gone global. Gordon’s View, retrieved 30 Jan. 15, http://www.mckinseychina.com/chinese-innovation-has-gone-global/

The Economist. From brawn to brain. Retrieved 25 Jan. 2015, http://www.economist.com/node/21549938

Xi Jinping, 2014. Governing China. Beijing: Foreign Language Press.

Pablo Ignacio Ampuero Ruiz, MIR-Peking University

Publishing Coordinator publishing@annexasia.com