China market overview

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I think it’s over the past 12 months that there have been the largest change in the China market. The emerging opportunities are in health care and There is a couple reasons. One is that China is becoming a middle-income society, and people’s income is growing. And the second, is the whole of China becoming an aged society. We are talking about over 400 million Chinese are in their fifties and 200 million are in their sixties. And then there is a huge, you know, support system needed to help this market and the population. So there is opportunities for Queensland companies to provide the services, the productions and other things, you know to make those things happen. I think it’s a good time for Queensland companies to think more about the China market because China is no longer the fastest growing market, it is becoming mature. The whole size of the economy has become much bigger than before, and the market is mature and the people’s income is growing, and new opportunities come in from time to time. We are still considered as a traditional market like mining, like with agri-business but also we should think about more services, products and others like digital, and healthcare and aged care. That is new market providing tremendous opportunities for Queensland.

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Doing business with China is a two-way business. I think firstly we would ask the Queensland company to do their homework and get ready for the market and for export. Secondly, we will work with them together to identify a niche market for them, identify potential partners or suppliers for such markets because each
product or service is different and you need to be very targeted, and the generic promotion at this stage I think is a bit outdated.

We need very targeted, niche markets and that would work with Queensland firms. We have a strong team there (in China) and it’s currently growing significantly through Trade & Investment Queensland and the China office is now in four locations in Shanghai, Beijing, Guangzhou, and Chengdu and the latest one announced by the Premiere two months ago and we’re working well, and working with some Queensland firms together to target markets.

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I think the best advice is to work with the companies and from the beginning to the end to help them to supply chain, build up as strongest supply chain for the 0 market. For instance, versus white boys of walking with contents teachers girls from better end to ther importers and the wholesalers and give them advice to make change for their package materials and also to the quality of teachers and also to collect market feedback regarding the qualities and also its working with the importers and set up their sales management here to walk with the course together and by the end is the promotion of things with local wholesale markets together as a whole. As long as you can get through the whole is somebody chain this you are so going to success in the market. So that is just one example, I think – it’s working together.

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Agribusiness and food sectors. We (China) would say that beef of course is a top priority for Queensland exporters. At this stage the market has been increasing significantly over the past three years.

And also fresh fruits from Queensland such as citrus and mangoes are selling well and (have a) high reputation with good market feedback in China on such products (being) very clean and very safe, and taste well.

And also processed food of course such as macadamia nuts which Queensland produce are selling well in China.

Apart from that of course is, we expect live cattle as an export to China in the near future. It might become the next export driven by China market demand.

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Another area is education of course as I mentioned in the case study, which was a successful case. Also there’s high school student recruitment that’s started towards vocation education for instance, like Aged Care It’s a new area because China has a growing aged population. It’s becoming a big problem for the future.

Thus China needs to get ready for that. Australia has a lot of experience, and the skills and the services in that area from Aged Care. It’s residential design, to the services provided, and nursing teams, and also the food, nutrition – and a lot of things can be provided to China for the Aged Care.

So that’s part of a vocation education for that area.

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Other opportunities that we think of is urban development. It is a new area, so as China will be looking for expertise from Queensland and the services and the products such as measurements for environment pollution. And also for the urban planning and Queensland has very high skills in that area for that one.

Of course there are a lot of investment inquiries and interest from China to the areas such as tourism facilities, and hotels, and multi uses of buildings and the theme park for instance. That’s all of the new areas in China for investment.

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This is a successful case for you from China I can think of one and it’s in vocation education, and we call it Hills Foundation, a Queensland-based, a local-based company. They are an education provider and are privately owned. They have set up a pre-school, kindergarten in China for over the past five years.

They provide a Queensland curriculum and also Queensland teachers there. And they have extended their business from one city to another city, fully booked. The (parents) have to wait for one to three years to get in. So it’s very successful as a bilingual education system in China, and (they are) well respected in China.

That’s a model that is based on Queensland kindergarten model.

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We’ll be talking today about China and exporting of services and products to China. First I think that the top three things you need to do, of course the first is to do your homework very well, prepare your product aligned with Eastern categories and specifications, for instance, and second is do the marketing intelligence regarding the countries you’re interested in going to export to, that is China.

The third one would be your networking. You need to set up as being well networked is a good approach and existing networks such as the chambers, and industry associations and governmental agencies such as Trade and Investment Queensland provide necessary information for you to go ahead.

So that is my recommendation for the top three things you should do.