EI Annual budget (2006) 245M Investment in companies (2006) 131M EI Investment Portfolio (2006) Seed & VC Fund 85M Investment in Cos 105M Total 190M (balance Sheet) New seed & VC Fund 108M (6 years)
Team based in Dublin & 5 China offices On average, e xports to China have grown by 18% in past 3 years Most companies have representative offices 91 Irish companies have offices in China by March 2009 ( Manufacturing/Operations ) Interested to find out opportunities for our client companies to increase exports to China
China – what you should know ! Philip Singleton 12th September 2012
Asia: 4 billion people, 60% world’s population China land mass of 3,705,393 square miles and a population approx 1.3 billion people. China is the most populous country in the world and ranks third in land mass, behind Russia and Canada.
China• 22 provinces• 4 directly admin: Beijing, Tianjin, Chongquing Shanghai• 2 SARS• 333 prefectures• About 3,000 Counties• Townships 40,000• 20,000 town govs.• 80,000 village govs• average village pop 1,000
Asian Wealth 2010• A total of 64 people from the Chinese mainland made the Forbes magazine list of the worlds richest billionaires, moving up to take second place for the first time.• The US: 403 billionaires. The Chinese mainland was followed by Russia 62 billionaires. Of the worlds 97 new billionaires, 62 were from Asia.• Among the super-rich from the Chinese mainland, 27 made the list for the first time.• In addition, 25 people from Hong Kong made it into the billionaires club, while 18 Taiwan people entered the list. More than 10% of billionaires on the list came from the Greater China Area, namely the Chinese mainland, Hong Kong, Macau and Taiwan.
Personal Wealth in China• 1 million Chinese with personal fortunes of $1.5 million• Half acquired their wealth from private business• 60,000 individuals tagged as being super-rich with assets in excess of $15 million.• 2011 showed a 10% increase in the number of Chinese millionaires and this is expected to increase by 10% over the course of the year.
Invest, Invest, Invest• China currently has about 3,300 kilometers of high-speed railways, but it plans to expand the network to 13,000 kilometers by 2012. As part of 2009’s US$585 billion economic stimulus package, China invested $88 billion in railway construction and spent another $120 billion in 2010.• The massive investment in railway construction in 2009 fuelled the demand for 20 million tons of steel and 120 million tons of cement.
The high-speed trains greatly relieve traffic pressure during the travel season, the worlds largest human migration, andhave also freed existing tracks for delivery of more freight. "The Zhengzhou-Xian high-speed railway will meet thegrowing demand of passenger and cargo transportation in central and western China, and help promote localdevelopment."
Wuhan-Guangzhou high-speed railway passengervolume reached 90% on first day
How can they afford it?• CHINA’S foreign exchange reserves increased by their largest amount ever in the third quarter thanks to capital inflows and a persistently large trade surplus that adds weight to complaints that Beijing is intentionally undervaluing its currency FT• The country’s reserves already the largest in the world, increased by $194 million in the past three months to $2,650 BN (2.6 trillion)• Worry INFLATION somewhere between 5 and 10%
Key targets of Chinas 12th five-year planGeneral Points• GDP to grow by 7% annually on average• More than 45 million jobs to be created in urban areas• Urban registered unemployment to be kept no higher than 5%• Prices to be kept generally stable.
Key targets of Chinas 12th five-year planLivelihood• Population to be no larger than 1.39billion• Life span per person to increase by one year;• Pension schemes to cover all rural residents and 357 million urban residents;• Construction and Renovation of 36 million apartments for low-income families;• Minimum wage standard to increase by no less than 13 percent on average each year;Environment & clean energy• Non-fossil fuel to account for 11.4% of primary energy consumption• Water consumption per unit of value-added industrial output to be cut by 30%• Energy consumption per unit of GDP to be cut by 16%• Carbon dioxide emission per unit of GDP to be cut by 17%• Forest coverage rate to rise to 21.66% and forest stock to increase by 600 million cubic meters;
Challenge; The Labour Market• Aging workforce 2007 20% pop. Retirees• By 2050 1/3 pop will be retirees (worker/retiree ratio 1:1)**• Higher cost workforce• Shortage of workforce• Shortage of managers• Well educated and starting to take on start ups• Differences of experience between indigenous and multinational• Very mobile
Enterprise Ireland International OfficesNorth America & South America Southern Europe, Northern Europe Germany, Central & Asia PacificCanada Sao Paulo Middle East & Africa London Eastern Europe, Russia Beijing SingaporeBoston Milan Paris Düsseldorf Shanghai DelhiNew York Madrid Amsterdam Prague Hong Kong SydneySilicon Valley Dubai Brussels Budapest TokyoToronto Riyadh Stockholm Warsaw Seoul Johannesburg Moscow
Ireland China Trade •Largest exports to China are medical devices & pharma products •Enterprise Ireland’s clients main exports are in food, education and financial services •Ireland/China trade grown from €34M in 1979 to over €5428M in 2011. In 1979, China was Ireland number 33 trading partner, China in 2011 was Ireland number seven (€5428M) trading partner •Over 220 EI client companies export to China in the sectors of Food, Education, Software, Medical Device, Construction… •Ireland has over 137 companies with operations in China, employing 8,000+ people (CRH, Glen Dimplex, PCH, Kerry Ingredients…) Annual Irish/Sino Trade(Source: Central Statistics Office Ireland, http://www.cso.ie/)
China Offices 中国办事处 China Team Director China Dublin China Office Alan Buckley Philip Singleton, Xiaojing Yue Beijing Shanghai Alan Buckley, Li Bo, Renee Wu Jenny Zhang, Hong Kong Patrick Yau
A computer generated imageof the $280m Wyeth facility inChina Allan Schouten, MD PM Group in Asia
TaxbackTerry Clune, Taxback Taxback HQ inKilkenny.CEO and 2009 Ernst & YoungEntrepreneur of the Year
Entrance to the BASF HQ inChina, designed by HJ Lyons. Michael Bradley, General Manager, HJ Lyons
Are you ready to do business in China ? • What are the unique selling points to your business proposition? Will there be a market for your product and services? • Are there any legal barriers to your business model? • Where in China would you start? • Do you have sufficient resources (management time, project finance and expenses) to fund your China projects? • Who will be leading the project within your company? • Do you need to work with a partner in China to succeed? Can you communicate with them effectively? • Have you evaluated business risks (such as protecting your IP) and conducted research and due diligence? • Do you know how to secure payment ?
We work with• First time exporters and start up companies• Companies sourcing new business in existing markets• Experienced exporters seeking new opportunities in emerging markets• International Buyers / Specifiers / Decision Makers
Sino Ireland Relations (2/3)The Visit of Chinese Vice President Xi Jinping to Ireland, Feb 2012
Sino Ireland Relations (1/3) Sino Ireland Relations China Trade Mission 20-25 October 2008Taoiseach (Prime Minister) Brian Li Changchun’s Cowen and Ireland Visit Shanghai Expo Ireland Prime Minister Wen Jiabao, – Sept.2010 Day October 08 - June 2010
Sino Ireland Relations (3/3)China Trade Mission, March 2012
Thank You For your attention 谢 谢www.enterprise-ireland.com www.enterprise-ireland.com/China Contact emails:Philip.email@example.com Xiaojing.firstname.lastname@example.org