With the world's largest population at 1.4 billion people, China is also the second-largest economy clocking a GDP of 14 trillion yuan in 2019. China is arguably one of the most desired markets for business expansion. Despite COVID-19, FDI continues to increase as foreign companies remain optimistic about the Chinese economy. The government is actively promoting the development of the New Infrastructure, presenting immense opportunities for ICT companies with innovative solutions. Of the top 100 companies that managed to increase their market capitalisation by the largest amount during 2020 (between January – June), 25 of them were Chinese and primarily focused on China for their profit generation.
5G in China
The rate of adoption of 5G in China is increasing rapidly, and it is predicted that Chinese consumers will be the first in the world to buy 5G phones en masse. 5G can change the everyday lives of a general consumer in many ways. TSector-specific adoption models have been developed to facilitate quicker adoption of 5G services by different industries and enable the implementation and adoption of 5G at a larger scale. The Chongqing Economic And Technological Development Zone houses a 5G-enabled Industrial Park which will be able to accommodate 200 5G-related companies by 2025.
Trading with China
Threats on trade include increasing tension among economic powerhouses, increasing trade protectionist sentiments, increasing scrutiny from authorities and increasing global competition for FDI. Companies can do an in-depth FTA consultancy to develop strategies to overcome these threats under the Enhanced Market Readiness Assistance Grant by Enterprise Singapore, which assists companies seeking in-depth FTA consultancy and overseas business development support.
Data and IP Protection
China offers IP protection for ICT companies in the areas of Technology, Data, Product Design, Web Control and Branding. Singapore has dedicated facilities at the China-Singapore Guangzhou Knowledge City and the China-Singapore International Intellectual Property Innovation Service Centre, that are crucial in developing vital policies in the area of IP protection that would benefit Singapore companies.
Tapping on available frameworks and funding
There are existing mechanisms to smoothen the entry process for Singapore businesses into China, especially Western China. The Singapore-Chongqing Joint Innovation Development Fund supports Singapore companies interested in the joint-development of innovative ICT products and solutions together with Chongqing companies.
China-Singapore (Chongqing) ICT Innovation And Collaboration Alliance
In 2019, SGTech took on the Singapore Chairmanship of the ‘China-Singapore (Chongqing) ICT Innovation And Collaboration Alliance’, co-chaired by China’s Technology Service Market in Chongqing (TSMC), to create and foster favourable conditions for members to internationalise.
The Alliance aims to bridge between governments and businesses to cooperate in projects, promoting Chongqing Connectivity Initiative ICT Pillar and recommending demonstrative projects for China-Singapore ICM Joint Innovation Development Fund.
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