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Event Recap: Outbound Investment - Market Entry Strategies, The Regulatory Framework and Areas of Opportunity

24 October 2016

Outbound Investment from Australia into China was the topic of the next event delivered by ACBC Victoria’s Financial and Investment Services Working Group. The intimate evening networking drinks function and series of presentations was hosted by ShineWing Australia on 24 October, and welcomed guest speakers Dr Chuyang Liu, China Advisor, International Operations, Austrade; Mr Kevin Lam, Partner, ShineWing Beijing and Mr Frank Liang, Head of Business Development, Bank of China.

The proceedings began with an introduction by Mr David Chu, Partner – International Liason, ShineWing Australia, who welcomed the first speaker Dr Chuyang Liu. Chuyang spoke about which Australian industry sectors have potential and can succeed in China. Australia’s competitive advantage is quite broad, therefore any sectors that can meet the rising demand of the Chinese middle class have a good chance of success. Such sectors include aged care facilities, premium food and beverages and other professional services. Chuyang concluded by highlighting the need for Australian businesses to sell the whole package with regards to what Australia can offer. Further, she emphasised that although the ChAFTA is a great window for investment into China, businesses need to be aware of the other regulations. However, all in all, her advice was simple - patience, perseverance and following your business sense.

Mr Kevin Lam was next to speak and focused on the current market situation in China relating to foreign investment and market entry strategies. Encouraged foreign investment industries in China include:

  • Agricultural advanced technology
  • Innovative technology that enhances productivity
  • Investment that can address market needs, improve product quality, explore new markets or improve competitiveness
  • Others defined by laws and policies 

Kevin moved on to discuss market entry strategies which consist of one internal factor – your internal capabilities, whether your organisation has the financial and human resources, as well as the management capabilities to do business with China – and five external factors – regulatory, market, suppliers, competitors and customers. Kevin provided a great deal of insight into these external factors and his slides are available for members via the members-only portal on the ACBC website.

The final presentation came from Mr Frank Liang who explored the technical banking aspects of investing in China. Exporting products or services to China involves Trade Settlement, while direct investment into China involves establishing a subsidiary or JV company in China. Frank provided details on each of these paths and concluded with how Bank of China can assist in this area.

The presentations were followed by an engaging and informative panel discussion and Q&A facilitated by Mr David Chu. Guests were then invited to enjoy further networking opportunities. ACBC Victoria extends our warm thanks to ShineWing Australia for generously hosting the event, and to Mr David Chu for facilitating. We also wish to thank our speakers for their time and expertise, as well as all members and friends who attended.