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Austrian companies remain optimistic about China

2015.12.16

China continues to be one of the strategically most important markets

The Austrian Business Confidence Survey, which is regularly conducted by ADVANTAGE AUSTRIA, reaffirms the positive attitude of Austrian companies towards their business activities in the Chinese market. Despite some uncertainties in the first half of 2015, 81% (2014: 85%) of respondents are expecting a positive development of the Chinese market in the next two years. 27% of the survey’s participants are planning to expand their business within the next two years, whereas 74% indicated that they would keep their level of commitment to the Chinese market. 21% of all respondents remain undecided and merely 5% are planning to reduce their investments in the near future.

The Chinese market continues to be demanding for Austrian companies. 88% of all participants identified growing competition as one of the most challenging aspects for conducting business in China. Whereas in 2014, 37% identified Chinese companies as their main competitors, this number has now risen to 40.3%, further emphasizing the rapid improvement by Chinese companies regarding quality management and branding. Besides growing competition the survey’s participants named rising labor costs (93%), quality management (85%), as well as issues related to the rule of law (78%) as major business challenges in China.

Despite China’s current economic slowdown the Chinese market still holds a lot of potential for Austrian companies. Most survey respondents emphasized the positive effect their presence in the Chinese market has had on their company’s overall performance. 84.2% described their business activities in China as having a positive influence on business developments in other markets. Furthermore, 62.4% of all respondents are already cooperating with Chinese enterprises in markets outside of China or are very likely to engage in such a partnership in the near future.

Besides its positive effect on the business development in other markets, market size remains a very important factor for Austrian companies. 96% of all respondents indicated that the sheer size of the Chinese market, especially regarding existing customers, is key to their presence in China. Simultaneously, the ongoing restructuring of China’s economic growth model offers vast business opportunities for Austrian companies.

China’s economy is aiming for a qualitative revaluation of its industrial output and higher real net output. This creates huge opportunities for suppliers of high-quality machinery and manufacturing equipment as well as other innovative technologies across various industry sectors. China’s rapid urbanisation will further drive demand for innovations related to infrastructure and urban planning. Simultaneously, rural development will gain importance. In this regard, Austrian companies feature vast expertise in the fields of agricultural and forest technology. Also companies engaged in the fields of environmental technologies, energy, automotive, as well as life science and medical technologies can expect increasing opportunities in the Chinese market. 

The Austrian Business Confidence Survey is regularly conducted by ADVANTAGE AUSTRIA as an online survey. More than 58 companies with various industry backgrounds participated in this year’s survey. 

Any questions?

Would you like to know more about Austrian business activities in China? Please contact us at peking@advantageaustria.org or +86 10 8527 5050.

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