Faced with exceptional circumstances – significant growth in the Chinese market – an exceptional response is required in the form of pooling the main strengths created by increased globalisation of French SMEs as part of the “China 2004” campaign.
This campaign should, within the next two years, open up China to SMEs in a cautious and sustained way.
France is not very well represented in China, even though international companies of French origin are present there, and our economy is not taking sufficient advantage of the astounding growth and opportunities China offers. We only rank 14th among suppliers for a country whose export growth is the highest in the world. And yet 4,000 French companies are regularly exporting to Beijing, Shanghai and Canton and among them are 3,000 SMEs.
SMEs have distinct advantages when it comes exerting an influence in a market where they operate together. The flexibility and responsiveness for which French SMEs are known are crucial attributes in a country undergoing such rapid economic expansion and where efficiency and haste are sometimes confused.
But before getting carried away, they should take into account the heavy outlay in time and money. Success requires sustainability and protection. The concept of intellectual property, which is now recognised, is still very novel, with counterfeiting still accounting for eight per cent of China’s GNP and allegedly employing between five and six million people. The commitments undertaken by China on its entry into the WTO should, in the long term, curb this phenomenon. China already allows complaints to be registered, and these are now taken into account.
“Aside from the fascination it exerts in the business world, the largest market in the world should not be approached like other markets”, said Olivier Candotti, Head of the Canton Economic Mission.
As part of a logical approach to greater openness to the world, the Chinese authorities are looking for partnerships with Western SMEs. This is the approach adopted by the CCPIT (China Council for the Promotion of International Trade) when dealing with the CGPME (General Confederation of Directors of SMEs).
In the next two years, over a million SMEs will realise that if they have the physical and human resources, they will receive help and advice to enable them to take their first steps, provided they have an idea or a product of interest to the Chinese market. How many will get that far? “If we motivate a few dozen SMEs capable of embarking on a project and succeeding, we will have achieved our objectives”, said Yves Capelle, “Mr China 2004”, the new President of the CGPME’s International Commission.