Published on October 11, 2007
Austrade Greater China – “have we got a deal for you”: Austrade Greater China – “have we got a deal for you” Laurie Smith Regional Director – North East Asia Austrade 20 March 2006 Slide2: Fukuoka Nagoya Sendai Sapporo Kunming Chengdu Hong Kong Ho Chi Minh City Hanoi Guangzhou Taipei Kaohsiung Hangzhou Shanghai Nanjing Beijing Dalian Seoul Osaka Tokyo NORTH EAST ASIA hub office regional office Austrade Locations in North East Asia Qingdao Wuhan Xian 6 markets 26 offices 40 points of presence Japan Korea China Hong Kong Taiwan Vietnam Ningbo Macau Shenzhen Slide4: Real GDP & personal consumption growth (2005 to 2010) Source: IMA Asia Slide6: A market for everything & anything For Australia - a diversity of opportunity: For Australia - a diversity of opportunity Building - materials, design, DIY, architects Services – education, tourism, finance, management, HR Engineered products – systems, products, services Food & beverages – organics, food safety, from bulk commodities to powder for a skinny latte Agribusiness – livestock, genetics, seeds ICT – fire & security, games, multimedia content Consumer market – fashion, cosmetics, “fads” Film, multimedia, cultural exports Health & medical – hardware, software, design, disposables, R&D A wealth of opportunity Slide8: Kunming Chengdu Guangzhou Hangzhou Shanghai Nanjing Beijing Dalian Office Sub-office Wuhan Qingdao Hong Kong Shenzhen Tianjin Trade Correspondent Xiamen Macao Chongqing Xian Harbin Shenyang Ningbo Wuxi Kunming Chengdu Guangzhou Hangzhou Shanghai Nanjing Beijing Dalian 5 hub offices 12 regional offices Wuhan Qingdao Hong Kong Shenzhen Macau Ningbo Austrade’s Greater China network Xian ~ 120 staff Taipei Kaohsiung The largest network of any foreign government in China Slide9: It’s your network so get on your bike and use it ! Over 10,000 Companies Export to Greater China: Over 10,000 Companies Export to Greater China In 2005 Austrade’s Greater China network: provided services to over 4,500 clients assisted over 1220 clients to export success including nearly 365 new exporters Services to Clients (General): Services to Clients (General) Scaling potential demand for products or services Identifying potential business partners, drawing on our extensive customer networks Facilitating communications and negotiations Advice and assistance on promotional events, strategies Customer relationship management and troubleshooting Services to in-market clients: Services to in-market clients Strategic market assessment to inform investment and locational decisions Opportunity identification Access to customers, especially government connections Delivery of in-market events Facilitation of programs in Australia for key contacts Slide13: Place your bets now ! Sure winners – odds at 1/1: Sure winners – odds at 1/1 Timber Organic skin care Berry powder, ginger powder and other fruit powder for baker use Seamless cold drawn steel tube (specification to DIN2391) Recycled PET Consultant services for operation of water recreation theme park Solar energy systems (inverters, solar panels, control systems) Lead concentrate with lead content >45% and sulphur content <3% Strategic partner in securities, fund management, banking, insurance, bonds etc English Learning Teaching (ELT) materials (full set for any level) Rutile sand, powdered alumina Wine – bottle & cask Slide15: China IP – the question everyone asks China is a Hazardous IP Environment: China is a Hazardous IP Environment Referred to as the “counterfeiting capital of the world” Conspicuous examples include imitation of famous branded product (eg Louis Vuitton), sporting goods (Callaway) pirate DVDs and software, bootleg liquor and cigarettes But also an issue in industrial products sector (eg automotive components) Never safe to assume that your IP is not under threat IP Infrastructure: IP Infrastructure There is an abundance of IP infrastructure in China Substantial progress over last 15 years - well established procedures for registration of Patents Trademarks Designs Trade secrets Domain names China subscribes to all relevant international treaties and conventions Need to register in China to obtain the protection of the Chinese system Austrade can advise on experts to assist with this process Enforcement: Enforcement Consistency of enforcement and adequacy of penalties is a major issue High incidence of “home town decisions” especially but not exclusively away from the major centres A few high profile cases, but a general sense that the heart is not in it Longstanding presumption in China that foreign investment is synonymous with technology transfer (ie they have a right to it) Again there are well developed procedures for pursuing IP trangressions (production of evidence, organisation of raids by relevant authorities) Austrade can advise on specialists in IP management and enforcement Prevention Versus Cure: Prevention Versus Cure Often there will be no cure, so prevention is the only sensible option Businesses planning to identify the main IP risks upfront: Do you have IP that is registerable in China? Costs and timeframes involved Is your product or service at risk outside of China (discovery by travellers, business visitors etc)? Planning to sell into the domestic market or export from China? Identify how loss of control of IP might compromise core business. Develop strategies for ensuring IP does not leak out into the market: maintaining secrecy around key elements of a production process provision of “black box” componentry partial manufacture in China, part elsewhere surfing the wave of innovation IP needs to be viewed as a central element of a China business strategy, not an add-on that the lawyers will take care of.