The Chinese Economy Going Global
With the ongoing trend of integration of global economy, global market competition has moved passed the stage of product differentiation into inter-brand competition. Whether a country owns a world recognised brand is becoming a crucial criterion for a country’s economic power and global competitive edge.
Since “Reform and Opening-up”, China’s economy has grown rapidly and become the “World Factory”, with sales of commodities such as washing machines, televisions, refrigerators, cameras and clothing ranked world No.1. Although China is a “manufacturing giant”, it does not have the brand power. Therefore, it is critical for the future of Chinese companies to transit from “made in China” to “invented in China”. For Chinese enterprises to have a say in the world market, it has to adapt to the age of inter-brand competition through brand selling and create China’s own global brands. Only by constant innovation and development, as well as effective brand management, can Chinese enterprises create their own competitive edge and contribute to the economic growth.
Since UK has regained its independence in foreign policy after Brexit, it has to make adjustments to its current policies. Will this be a golden opportunity to reinforce the collaboration between Chinese and UK companies? Across the Atlantic Ocean, Trump’s cabinet will implement a major reform in US trade policy and is likely suspend Obama’s Trans-Pacific Partnership (TPP). Does it mean that the Free Trade Area of the Asia-Pacific (FTAAP), a TPP equivalent dominated by China, will take control of trades in Asia and therefore, making China the leader of Asia-Pacific Area? Meanwhile, up to the third quarter of 2016, Chinese enterprises have completed $674.4 billion Mergers & Acquisitions (M&A) deals, overtaking US to become the largest outbound M&A country. What are the factors behind China’s surging outbound M&A activities? How will Brexit create opportunity for M&A deals between UK and China?