ACBC China Capability Survey 2024: Insights and Key Findings

In July 2024, the Australia China Business Council (ACBC) conducted the China Capability Survey, gathering insights from nearly 100 respondents, including ACBC members and non-members, to assess the current state of corporate Australia’s China capabilities.

Over 55% of respondents had more than ten years’ experience in the China market, and many (34%) categorised their own organisations as having a strong understanding and China capability.
Unsurprisingly, most organisations have a clearly defined China strategy (66%) and risk assessments (63%) and have adapted to local market conditions with 60% marketing their products and services in Chinese with almost 70% customising their offerings to suit the needs of their Chinese consumers.

However, despite 63% of businesses having a physical presence in China, when examining their capability through a defined framework that requires specific knowledge, strong networks, cultural adaptability and leadership, the results reveal some areas of concern.

Specifically, only 23% rated their understanding of China’s domestic economy as good, with almost 20% admitting they had a limited understanding of Australia-China relations and China’s international economic policy.

The data also revealed weak relationships between organisations and Australian government agencies in China with less than 20% claiming they are strong with a similar percentage describing their connections with Chinese government agencies in Australia.

Insufficient cultural and language training was another issue with 33% of respondents occasionally offering specialist training and worryingly 21% of organisations offering no internal support to develop China specific language skills or cultural competencies. These figures are reinforced with less than 34% of the organisations speaking fluent or proficient mandarin.

These statistics paint a concerning picture of the current state of China capabilities among the surveyed organisations. The low levels of competencies in key metrics, lack of understanding, weak relationships with government agencies, insufficient cultural and language training suggest significant areas for improvement.

ACBC is aware of these issues, which are even more stark across less China-engaged organisations and is working on addressing them through developing a formal organisation-based China capability training program. More details will be provided at Canberra Networking Day, or contact our National CEO at tom.parker@acbc.com.au