Mid-sized businesses are set to emerge the big winners of the FTA with China.
New markets opening up in education, hospitality, aged care, services and agricultural produce, are dominated by mid-sized businesses known for their agility, adaptability and capacity to build long-term trusted relationships, so critical for Chinese trade.
Greg Keith, Grant Thornton Managing Partner and former Chinese Partner, believes the characteristics of Australian mid-size businesses will aid in overcoming the challenges of entering new markets in China.
“Mid-sized businesses turning their mind to China will be challenged by complex rules surrounding profit repatriation, legal structure, business etiquette, language and culture.
“However, the unique advantage for Australian mid-sized businesses is that Chinese businesses greatly value relationships with business owners who they know have authority, are agile and committed to long-term relationships,” said Mr Keith.
These sentiments were echoed by Xu Hua, CEO of Grant Thornton China.
“Chinese consumers and investors are increasingly looking towards Australia as a business partner. Those businesses which are prepared to invest their time to develop trusted relationships first will benefit most in the longer term,” said Mr Xu.
Chinese State Owned Enterprises which control the majority of purchasing decisions are likely to be influenced by this public alignment with Australia by President Xi Jinping, opening up opportunities for local growth through equity funding.
“Mid-size businesses looking to accelerate local growth plans are also best placed to capitalise on inbound investment opportunity. Chinese investors prefer to deal with business owners with whom they can build long term trusted relationships which are consistent with Australian mid-size businesses, said Mr Keith.
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