Devaluation of the yuan, turbulence in the stock market, a slowdown in economic growth and interest rate cutting five times in one single year, many issues in china economic development have raised great concern in recent events. What does this mean for foreign investors and in the light of that will those changes lead to a stable environment for investment in the future? On 18th, September 2015, when Jebsen Industrial held a half-day seminar in Munich.
The Seminar started with welcoming remarks from the key note speaker Maximilian von Stillfried, Managing Director of Jebsen Industrial. The Jebsen Group was founded in 1985 in Hong Kong. Focusing on its business and industrial field, Jebsen Industrial has been active on the Chinese market for more than 100 years. In 2015 Jebsen Industrial launched the new service program “Market Intelligence & Consultancy Services”, which aims at supporting foreign companies to enter the Chinese market and to expand their business. After giving a brief introduction Mr.Stillfried shared his view regarding latest developments of the Chinese market. The fact that China is now seeking a more sustainable growth should not be neglected. In other words, speed is not the only factor for measurement anymore. The government is embarking on new steps toward a more market-based economic system. Relevant policies such as improving corporate governance and asset management to support import, helping the small and medium-sized companies to realize their shift from low-cost production to high-value manufacture, so that they could better adapt to the global competition are proceeding. Opprtunities for overseas investors remain attractive since regarding exchange-rate, rules and procedures for foreign direct investment have been simplified, which actually, also allows the market force to play a more critical role.
In the afternoon session, three different workshops were held in separated teams. In the workshop three “Tackling the market by combining strengths – German-Chinese Partnerships”, Arnie Jenson, director & general manager from Jebsen Automotive Technik (JAT), supported by Mr. Robert Stöhr, Managing Director at MSR Technologies GmbH, talked about how JAT cooperates with foreign OEM manufactures to fit into the Chinese market. Until now, three joint ventures have already been set up between JAT and their partners in the second largest economy, not to mention that the fourth will be happening soon. As an OEM manufactures service providers within a long history in this domain, JAT has strong local expertise in regional sales, network building and aftermarket business. Their role, in this case, is to assist their business partners to localize by facilitating the advanced technologies and complete solutions. Under the new collaborative management, the cooperation has proven quite a success. Their products are provided to both domestic and foreign customers with outstanding quality but a lower cost.
Along with the light refreshment at the end is the wrap-up discussion. A lot of ideas and reviews from the workshops were shared. The Jebsen management team pointed out that considering the over-capacity in first tier cities, overseas investors should consider looking for new locations for their business in China, meaning second or third tier cities. With big improvement in local infrastructure and logic system a couple of years from now, those cities have big potential for setting up production basement, developing network and exploring split-new opportunities on the long run.
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