Progress and expectations of business between People's Republic of China (PRC) and Europe/Italy Centro Reach S.r.l Dec 3 rd, 2014 11/12/2014 1
New Economy Era in China China outbound investment will exceed foreign FDI From Investment-led model to more sustainable consumption and service oriented model Average 7% moderate growth rate with boom for the middle-class Influential state-owned & private companies are more overseas-ambitious and more innovative Chinese companies are to be understood in a more complex, globalised environment. Italian companies shall evaluate opportunities provided by the Chinese market considering the global market 11/12/2014 Source: Chinese Customs. Statistics anaylised by Camera di Commercio Italo Cinese. 2 The value indicated is upon customs registration, without considering exchange rate
Market opportunities ( Jan Oct 2014 ) Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes Import in USD Total 8.258.632.125 Export in USD Total 12.514.340.793 Kazakhstan 1.239.008.669 Japan 1.616.622.526 Korea Rep. 994.422.158 Korea Rep. 1.554.331.676 Australia 966.233.616 United States 1.213.606.981 United States 844.004.782 Germany 836.354.536 Thailand 559.424.238 India 555.932.661 Italy 11.880.192 Italy 132,131,580 11/12/2014 Source: Chinese Customs. Statistics anaylised by Camera di Commercio Italo Cinese. 3 The value indicated is upon customs registration, without considering exchange rate
Market opportunities ( Jan Oct 2014 ) Organic chemicals Import in USD Total 51.413.902.402 Export in USD 37.721.473.093 Korea Rep. 11.785.451.749 India 5.264.034.111 Japan Taiwan Saudi Arabia 7.039.878.431 6.461.625.053 5.166.330.451 United States 5.044.630.985 Japan 2.452.268.080 Korea Rep. 2.113.988.993 United States 3.251.858.315 Brazil 1.628.135.563 Netherlands 1.596.804.758 Germany 1.561.691.342 Italy 167.285.051 Italy 849.756.257 11/12/2014 Source: Chinese Customs. Statistics anaylised by Camera di Commercio Italo Cinese. 4 The value indicated is upon customs registration, without considering exchange rate
Market opportunities ( Jan Oct 2014 ) Fertilizers Import in USD Total 2.759.966.411 Export in USD Total 6.532.927.276 Russia 800.573.116 Byelorussia 396.336.664 Israel 392.371.155 Canada 325.657.097 Norway 252.023.475 India 1.422.821.663 United States 468.265.409 Vietnam 451.778.865 Brazil 450.229.069 Indonesia 279.037.009 Italy 6.148.187 Italy 7.670.313 11/12/2014 Source: Chinese Customs. Statistics anaylised by Camera di Commercio Italo Cinese. 5 The value indicated is upon customs registration, without considering exchange rate
Market opportunities ( Jan Oct 2014 ) Tanning or dyeing extracts; tannins and their derivatives; dye pigments and other coloring matter; paints and varnishes; putty and other mastics; inks Import in USD Total 3.711.988.650 Export in USD Total 5.632.828.851 Japan Germany United States Korea Rep. Taiwan 715.044.272 475.264.104 464.036.950 397.282.781 396.590.870 United States 462.795.609 Indonesia 385.394.122 Korea Rep. 348.782.709 India 305.678.501 Taiwan 279.260.699 Italy 91.429.958 Italy 112.047.467 11/12/2014 Source: Chinese Customs. Statistics anaylised by Camera di Commercio Italo Cinese. 6 The value indicated is upon customs registration, without considering exchange rate
Market opportunities ( Jan Oct 2014 ) Essential oils and resinoids; perfumery, cosmetic or toilet preparations Import in USD Total 2.781.311.387 Export in USD Total 3.420.419.897 France 860.277.053 United States 456.639.695 Japan 380.973.815 Korea Rep. 192.015.178 United States 717.356.283 HongKong 285.663.125 Japan 271.147.708 United Kingdom 246.742.928 United Kingdom 169.276.155 Indonesia 181.596.725 Italy 59.768.343 Italy 37.241.159 11/12/2014 Source: Chinese Customs. Statistics anaylised by Camera di Commercio Italo Cinese. 7 The value indicated is upon customs registration, without considering exchange rate
Market opportunities ( Jan Oct 2014 ) Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, "dental waxes" and dental preparations with a basis Import in USD Total 3.279.512.738 Export in USD Total 2.815.073.840 Japan 744.973.697 United States 703.244.864 Germany 562.703.495 Korea Rep. 199.523.231 France 170.838.640 United States 243.950.916 HongKong 189.576.426 Japan 175.389.418 Australia 111.361.689 United Kingdom 109.124.982 Italy 50.942.126 Italy 19.978.159 11/12/2014 Source: Chinese Customs. Statistics anaylised by Camera di Commercio Italo Cinese. 8 The value indicated is upon customs registration, without considering exchange rate
Market opportunities ( Jan Oct 2014 ) Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations Import in USD 121.698.000 Export in USD 816.129.376 United States 64.062.546 Thailand 21.638.849 Japan 10.869.917 Czech Republic 7.217.495 Germany 5.472.618 United States 238.630.095 Germany 100.992.503 Indonesia 47.849.705 Australia 30.281.790 United Kingdom 28.138.426 11/12/2014 Source: Chinese Customs. Statistics anaylised by Camera di Commercio Italo Cinese. 9 The value indicated is upon customs registration, without considering exchange rate
Market opportunities ( Jan Oct 2014 ) Photographic or cinematographic goods Import in USD Total 1.868.880.415 Export in USD Total 986.432.564 Japan 831.794.372 United States 452.811.292 Korea Rep. 190.970.641 Taiwan 132.524.838 Belgium 96.342.430 Korea Rep. 139.047.546 HongKong 134.160.568 Taiwan 67.983.672 Japan 56.172.294 United States 46.950.036 United Kingdom 44.402.430 Italy 248.394 Italy 5.642.653 11/12/2014 Source: Chinese Customs. Statistics anaylised by Camera di Commercio Italo Cinese. 10 The value indicated is upon customs registration, without considering exchange rate
Market opportunities ( Jan Oct 2014 ) Miscellaneous chemical products: Residual lyes from the manufacture of wood pulp; or chemically treated, including lignin sulphonates; Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant growth regulators, disinfectants; Refractory cements, mortars, concretes and similar compositions; Artificial graphite; colloidal or semi colloidal graphite; preparations based on graphite or other carbon; Activated carbon; activated natural mineral products; animal black; Tall oil Import in USD Total 14.092.567.205 Japan 2.494.950.210 United States 2.489.710.870 Taiwan 1.375.746.091 Indonesia 1.340.930.185 Korea Rep. 1.331.242.067 Export in USD 11.851.332.863 Taiwan 1.527.044.133 Korea, Rep. 906.042.128 United States 860.118.626 Japan 840.646.453 Thailand 521.300.322 Germany 1.108.604.255 Italy 221.418.064 Italy 76.760.939 11/12/2014 Source: Chinese Customs. Statistics anaylised by Camera di Commercio Italo Cinese. 11 The value indicated is upon customs registration, without considering exchange rate
Market opportunities ( Jan Oct 2014 ) Plastics Import in USD Total 62.859.671.178 Export in USD 54.984.054.054 Korea, Rep. 10.405.113.709 Taiwan 8.417.465.431 Japan 8.252.865.847 United States 5.714.957.786 United States 10.478.128.324 HongKong 4.179.408.499 Japan 3.645.778.033 India 1.918.207.353 Singapore 3.578.916.682 Russia 1.657.207.451 Italy 462.911.484 Italy 678.473.054 11/12/2014 Source: Chinese Customs. Statistics anaylised by Camera di Commercio Italo Cinese. 12 The value indicated is upon customs registration, without considering exchange rate
Market opportunities ( Jan Oct 2014 ) Rubber products Import in USD 14.495.345.869 Export in USD 19.751.487.956 Thailand 4.295.016.614 Malaysia 1.704.863.955 Japan 1.541.482.400 United States 1.071.019.509 Korea Rep. 971.526.637 Italy 146.204.139 United States 4.401.121.967 United Kingdom 739.212.800 Russia 608.905.814 Mexico 589.046.447 Japan 586.875.376 Italy 348.038.706 11/12/2014 Source: Chinese Customs. Statistics anaylised by Camera di Commercio Italo Cinese. 13 The value indicated is upon customs registration, without considering exchange rate
What is going on in China? Chemical Industry: the 2013 1Q fact sheet - No. Companies: 25169 - Revenue: RMB 3,8 trillion - Profit: RMB 171.71 billion 11/12/2014 14 Source: China Nationa Development and Reform Commssion ( NDRC ).
What is going on in China? INVESTMENT IN FIXED ASSETS BY SECTOR 2014 (Jan.-Oct.) (1 000 000 yuan) Petroleum Processing, Coking and Nuclear Fuels Processing: 269.483 Raw Chemical Materials & Chemical Products Manufacturing: 1.190.931 Medical and Pharmaceutical Products Manufacturing: 427.707 Chemical Fiber Manufacturing: 92.619 Rubber and Plastic Products 488.675 11/12/2014 15 Source: Novermber monthly report of China National Statistics Offce.
What is going on in China? Growth factor: urbanisation! INVESTMENT IN FIXED ASSETS (EXCLUDING RURAL HOUSEHOLDS) BY SECTOR 2014 (Jan.-Oct.) (1 000 000 yuan) - Construction 399.574 - Transportation, Storage and Posts 3.303.548 - Real Estate 10.058.337 PROJECTS UNDER CONSTRUCTION AND PLANNED INVESTMENT (EXCLUDING RURAL HOUSEHOLDS)( Jan.-Oct. 2014 ) - Projects under construction: 537.986 - Newly started projects: 23.473 CONSTRUCTION OF RESIDENTIAL BUILDINGS (EXCLUDING RURAL HOUSEHOLDS) 2014 ( 1000qm ) - Floor space completed: 637312.5 - Floor space under construction: 5610011.0 11/12/2014 16 Source: Novermber monthly report of China National Statistics Offce.
Output of Major industrial products 2014 ( Jan. Oct. ) 11/12/2014 17 Source: Novermber monthly report of China National Statistics Offce.
Main economic indicators of industrial enterprises by branch of industry 2014 ( Jan. Sept. ) ( 1,000.000 Yuan ) 11/12/2014 18 Source: Novermber monthly report of China National Statistics Offce.
Main economic indicators of industrial enterprises by branch of industry 2014 ( Jan. Sept. ) ( 1,000.000 Yuan ) 11/12/2014 19 Source: Novermber monthly report of China National Statistics Offce.
Sales and inventory of industrial products (Q1-Q3, 2014) 11/12/2014 20 Source: Novermber monthly report of China National Statistics Offce.
What is the Chinese government planning? - Auto-sufficiency strategy and sustainability, which results in government support for local players. 2015 Target: 76% auto-sufficiency for new chemicals and 1,5 trillion production of fine chemicals. - Key sectors relevant to the chemical industry: new energy, new materials, new energy automotive and energy saving. I.E. large scale ethylene project in next future - Agriculture and food safety is a must for China - Great concern for the deficit for chemicals used in plastics - «Go Abroad»: Government support for SOE and private companies to enhance their product portfolios, when possible - «Go West»: government support on developing petrochemical and chemical enterprises in western provinces 11/12/2014 21 Source: 2012 market report on China s fine chemical industry, China Import Forum
This is what consolidated Chinese companies are thinking for 2015. Consolidated companies: for example, 2011, more than 7000 Chinese chemical companies with revenue more than 5billlion Rmb*; 500 top companies count as 47,1 percent of industry asset.** - Quality, environment & sustainability - Brand management - Overseas Investment and acquisitions, more oriented on mid-cap foreign asset with International sales network and selected technology solutions. - Technology innovation Chinese chemical industry is restructuring itself to be more competitive on a global scale: more synthetic materials and special chemicals segments / less basic chemicals 11/12/2014 Source: *multi reports of China National Statistics Offce. ** Powerful enterprises are the basis of a powerul country: research report on 10-year developmento of 22 China s Top 500 chemical enterprises, 2013, CCEMA/CCIA
Think China, think global! A check list for Italian companies 1. Target definition: is China the best region for improving your global market share? 2. Opportunity definition: slowdown and overcapacity of Chinese local player can be transferred to opportunities for Italian companies? 3. Strategy definition: Considering net chemical deficit and dependency on imported material of Chinese market. Shall Italian companies concentrate on exporting or invest in China/Asia? 4. Market research: business model for Italian PMI in China 5. Qualification, certification and communication. 6. Definition of information channel for business opportunities. 7. Partner definition. 11/12/2014 23
Camera di Commercio Italo Cinese Via Clerici 5 20121 Milano Mail: info@china-italy.com www.china-italy.com 11/12/2014 24