China is the first country in the world to experience a post-COVID era.
The strict containment measures imposed to stop the spread of the virus have drastically reduced infections, enabling the Chinese economy to begin growing again.
And while other countries struggle to emerge from the pandemic and all the economic implications that holds, China has just recorded a 5% increase in GDP.
Businesses and commercial activities are recovering, internal demand has increased and new overseas trade opportunities are now springing up.
With a truce agreed in the trade war that risked bubbling over during the previous US presidential administration, China has taken advantage of the void left by the American superpower to strengthen its own commercial relationships with Asian and European countries alike.
Let’s take a look at the key points in China’s agreements with these countries.
Commercial agreements with China
The first commercial agreement involving China we’re going to look at is the Regional Comprehensive Economic Partnership (RCEP), which was signed on 15 November 2020 by 15 countries from the Asia-Pacific region.
The agreements involved in the RCEP are designed to support the economic recovery of the various countries involved. The partnership includes increased trade liberalization through removal of tariffs and other trade barriers, a relaxation of the rules on people involved in the trade of goods, services and investments who are visiting and staying in the country temporarily, and efforts to encourage e-commerce.
The second such agreement is the Comprehensive Agreement of Investment (CAI), which applies to China’s relationships with Europe.
This is a much more complex agreement, with negotiations alone having taken seven years. And although the agreement is still a draft, it’s not hard to see the huge potential it represents.
The overall aim of the CAI is to protect investors and their investments.
The agreement allows for European investors to invest in sectors that were previously restricted (such as the automotive and telecommunications sectors), as well as greater transparency in procedures applicable to investments.
Both agreements represent turning points for China and contribute to making it the most promising and potentially lucrative market in the world at this historic time. So when it comes to planning your company’s global development strategy, China is one market you simply have to consider – otherwise you risk letting truly one-off opportunities slip away.
The advantages of the Chinese market for global development
Though in the past other Asian countries have not automatically been able to access the Chinese market, the situation is destined to change radically. China is morphing into the strategic gateway to the entire Asia-Pacific area.
Having a presence in China will allow a company to expand not only in the Chinese market (the largest in the world thanks to its population of nearly 1.4 billion), but also in the 14 other economies involved in the agreement.
It’s vital for companies to have a presence in China if they wish to tap into the opportunities offered by this unique economy, which has succeeded in bouncing back from the pandemic without many repercussions.
The first step to gaining access to this lucrative market is without doubt speaking the same language as the stakeholders you’re targeting. As such, it’s crucial that a company turn to a professional language service provider with experience in international development.
At Way2Global, we have a team of native-speaking Chinese translators and interpreters specializing in the biggest sectors: fashion, design, luxury, food and beverage and quintessentially Italian products.
Thanks to our team of project managers, we can provide clients with comprehensive support to assist them in choosing the best solution to fit their needs. Whether you need a translation, localisation or interpreting service, we’re ready and waiting to provide you with impeccable quality every time.
Need a translation service as part of your global expansion strategy? Contact us!