Chinese Economy and
Business Opportunities
Qinglei Dai
Faculdade de Economia
Universidade Nova de Lisboa
March 23, 2011 for Ordem dos Economistas
Agenda

Chinese economic growth: an overview
International trade with China
 FDI in China


China-Portugal business relations
Portuguese export to China
 Portuguese investment in China


How to do business in China? Some
international experiences
Qinglei Dai, FEUNL
March 23, 2011 for Ordem dos Economistas
Chinese Economic Growth
(1970-2009)
GDP growth rate (%)
20
15
10
5
-5
-10
World
Qinglei Dai, FEUNL
China
Germany
Japan
United Kingdom
United States
March 23, 2011 for Ordem dos Economistas
09
20
07
20
05
20
03
20
01
20
99
19
97
19
95
19
93
19
91
19
89
19
87
19
85
19
83
19
81
19
79
19
77
19
75
19
73
19
19
71
0
Chinese Economic Growth
(1970-2009)
GDP growth rate (%)
20
15
10
5
-5
-10
World
Qinglei Dai, FEUNL
China
Germany
Japan
United Kingdom
United States
March 23, 2011 for Ordem dos Economistas
20
09
20
07
20
05
20
03
20
01
19
99
19
97
19
95
19
93
19
91
19
89
19
87
19
85
19
83
19
81
19
79
19
77
19
75
19
73
19
71
0
Chinese Economic Growth
(1970 – 2009)
GDP (billion $)
16000
14000
12000
10000
8000
6000
4000
2000
19
70
19
72
19
74
19
76
19
78
19
80
19
82
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
0
China
Qinglei Dai, FEUNL
Germany
Japan
United Kingdom
March 23, 2011 for Ordem dos Economistas
United States
Chinese Economic Growth
(1970 – 2009)
GDP (billion $)
16000
14000
12000
10000
8000
6000
4000
2000
19
70
19
72
19
74
19
76
19
78
19
80
19
82
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
0
China
Qinglei Dai, FEUNL
Germany
Japan
United Kingdom
March 23, 2011 for Ordem dos Economistas
United States
Chinese Economic Growth
(1970 – 2009)
GDP per capita (PPP)
50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
19
70
19
72
19
74
19
76
19
78
19
80
19
82
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
20
10
20
12
20
14
0
China
Qinglei Dai, FEUNL
Germany
Japan
Portugal
United Kingdom
March 23, 2011 for Ordem dos Economistas
United States
International Trade
Export of Goods and Services (billion US$)
1600
1400
1200
1000
800
600
400
200
0
2000
2001
2002
China
Qinglei Dai, FEUNL
2003
Germany
2004
Japan
2005
2006
United Kingdom
March 23, 2011 for Ordem dos Economistas
2007
United States
2008
2009
FDI in China

Global companies are now making a more
aggressive push into China


2010: more than 1200 R&D centers
In 2009, foreign-invested companies accounted
for
28% of the nation’s industrial output
 56% of exports
 directly employed 45 million people.

Qinglei Dai, FEUNL
March 23, 2011 for Ordem dos Economistas
Portugal and China Trade Relations

The total trade between Portugal and China in
2010 mounted 1.8 billion Euros
Import from China: 1.57 billion Euros
 Export to China: 230 million Euros


China became one of the top ten trading
partners for Portugal in 2010
No. 8 import source country
 No. 24 export target market

Qinglei Dai, FEUNL
March 23, 2011 for Ordem dos Economistas
1%
Export from Portugal to China (2010)
Portugal and China Trade Relations
1%
1%
1%
Salt; Sulfur; Earths and Stone
7%
1%
Electrical Machinery, Etc.
Cork
20%
2%
Woodpulp, Etc.
2%
Plastic
2%
Rubber
2%
Machinery; Reactors, Boilers
2%
Vehicles, Not Railway
3%
Copper and Articles Thereof
Furniture and Bedding
4%
Beverages
Manmade Staple Fibers
4%
19%
Manmade Filaments
Aluminum and Articles Thereof
4%
Iron and Steel
Wood
5%
Stone, Plaster, Cement
5%
7%
10%
Woven Apparel
Tanning, Dye, Paint
Iron and Steel Products
Qinglei Dai, FEUNL
March 23, 2011 for Ordem dos Economistas
others
Portuguese Investments in China

Total number of projects so far: 172


Total amount of investment (in contracts): US$ 336
million



Projects initiated in 2009: 14
Amount of investment (in contract) in 2009: US$ 51.5 million
Yearly growth: 104%
The majority of investments (63.5%) are made by the
Chinese community residing in Portugal, with
Portuguese companies investing the remaining 36.5%.
Qinglei Dai, FEUNL
March 23, 2011 for Ordem dos Economistas
Portuguese Investment in China
2.0%
(2009)
5.9%
2.1%
textile / footware / leather goods
machinery
3.1%
chemicals
3.5%
33.4%
4.3%
electronics
energy
real estate and services
6.7%
metal material and products
food
office equipment / furniture /
construction material
cork
8.1%
11.6%
8.2%
11.1%
Qinglei Dai, FEUNL
March 23, 2011 for Ordem dos Economistas
trade
other
Doing business in China:
International experiences

Key words for
running electronic
business in China:
Low price
 Economies of Scale

Qinglei Dai, FEUNL
March 23, 2011 for Ordem dos Economistas
Doing business in China:
International experiences
Qinglei Dai, FEUNL
March 23, 2011 for Ordem dos Economistas
Doing business in China:
International experiences
Qinglei Dai, FEUNL
March 23, 2011 for Ordem dos Economistas
Doing business in China:
International experiences
Enter Chinese market
1987
1990
Menu
Localized
Global standard
Current No. of restaurants
3244
1300
What are they up to now?
Qinglei Dai, FEUNL
Replicating the successful
experience in other brands
of the firm, including Pizza
Hut
March 23, 2011 for Ordem dos Economistas
Modernizing image,
promoting Coffee Culture,
providing free Wifi
Thank You and
Welcome to Visit China!
Qinglei Dai, FEUNL
March 23, 2011 for Ordem dos Economistas