What matters most when everything is up and down

Investors around the world, including ourselves, had a tough day yesterday. Considering the somewhat depressed mood I had on my way to work this morning despite a fabulous weather in Shanghai, I got cheered up by reading 50 degrees East, a publication by the international law firm Allen & Overy.

The firm conducted a survey among 1,000 business leaders from major international firms in 19 different countries, and presents in this report a number of very interesting facts and figures. The overall conclusion they draw is that much of the world’s growth will come from China in the next two to three years. Indeed China ranked number one with 44% of votes when respondents were requested to indicate the markets with the best business opportunities. Germany was one of the countries giving very high vote for China, with 69%.

Hyundai factory in Nanjing

China might be the number one priority market, it is also perceived as one of the most difficult ones to penetrate according to the respondents. That’s indeed what I often hear here when speaking to representatives of foreign companies that do struggle a bit.

I recently attended the launch of the annual Position Paper by the European Chamber of Commerce in China, which represents the views of its 1,600 member companies. The Position paper, another interesting report (but 330 pages long!), concludes that the 12th five year plan’s priorities towards a more balanced and sustainable growth model and more open market are very positive, but that several barriers and discriminatory concerns for European companies remain albeit some progresses could also be observed during the past year.

So let’s go 50 degrees east even if not always that easy. I am not a huge fan of surveys but at the end of the day the strategic commercial and investment priorities of major multinational companies in the world might be what matters the most when everything else seems to be up and down.