Why China?
China is a huge market with even greater opportunities to grow your business, but it also pays to be prepared and well-supported before you enter a very different business context. We understand how daunting it can be to approach businesses in China, and that’s why we are committed to giving you all the support we can, from our pre-departure training, to our post-visit investment support. We will always offer you a candid perspective to help you understand both the opportunities and the limitations of doing business in China. We hope that you will engage with an approach that is both adaptable but solidly committed to your fundamentals.Despite many of the challenges, China remains one of the world’s most sought-after destinations for foreign businesses. In 2019, foreign direct investment (FDI) rose 5.8% to 941.5 billion yuan (US$137 billio0ni). This has been driven by increasing liberalisation of the economy, the rapid development of technology-driven industries, and the establishment of free trade zones. Even at the height of trade tensions with the US, more than 60,000 companies were established by foreign investors in 2018, a 70% increase compared to 2017.According to the British Chamber of Commerce's 2019 business sentiment survey, involving 249 of the largest British businesses in mainland China, 60% said that they intended to increase investment in their China operations the following year, with 79% of businesses citing market potential as the reason. These businesses represented a combined annual revenue of £22 billion (US$28.9 billion) with substantial interests in transport and logistics, media and publishing, health care and financial services.
Why Jiangsu?
When people talk about China’s cities it is often the towering skyscrapers of Beijing, the glistening lights of Shanghai or the innovative buzz of Shenzhen that comes to mind, but whilst these cities tell a dramatic story, they are merely the tip of China’s economic iceberg.
Across China a growing rank of second and third tier cities have become new engines for global economic activity with impressive growth to date and even more impressive capacity for the future.
Dere Street Capital is determined to drive new opportunity by helping British businesses to tap into this enormous growth potential through our unrivalled networks in China’s burgeoning new first and second tier cities.
The 2020 roadshow finds its focus in the Jiangsu Province, which alone makes up more than 10% of China’s total GDP. Renowned for innovation and with a reputation for open engagement around the world, Jiangsu’s economy is equivalent to the 15th largest in the world. Of its 13 cities, it has three new first tier and four second tier cities.
Provincial and local governments are battling to attract the brightest minds and the most innovative businesses and the roadshow is set to reap the rewards of Jiangsu’s distinctive concentration of private wealth and large regional investment vehicles.
Private companies
According to the Hurun 2020 China Most Valuable Private Companies List, there are more than 35 companies in Jiangsu Province along that has a valuation of at least 2 Billion USD
Private wealth
According to the Hurun Wealth Report, there are more than 250 billionaires in new first-tier and second-tier cities. In Jiangsu Province alone, where Dere Street Capital’s 2020 roadshow programme will take place, the 35 wealthiest individuals are worth more than $130bn put together.
Jiangsu is also home to one of the Chinese central government’s 13 governmental support areas focussing on innovation and private enterprise; supporting more than 500 tech-oriented companies.
Startup environment
According to the Hurun Global Unicorn List, Jiangsu is home to some 15 unicorns, 12 of which are found in the provincial capital of Nanjing, making it the 7th biggest most successful city in the world for generating these lucrative companies. .
