Keynote speech Bart Horsten at the CIFTIS Conference 21 June 2024

On the 21st of June Bart Horsten was asked to give a keynote speech at the Roadshow of the China International Fair for Trade in Services (CIFTIS). The below text is an abstract of this speech.

As a EU-China business consultant with 26 years of experience in facilitating cooperation between Chinese and European companies, I consider myself a privileged witness of the amazing development of China in the past decades, which gives me unique insights in the opportunities for cooperation between the two regions.

Let me get straight to the point. Instead of seeing China’s economic and technological development as a threat, I believe that EU companies should proactively look for Chinese partners and partnerships for joint development and commercialization.

I am a strong believer of partnerships between Chinese and European companies. These partnerships not only help to develop your business in China, but I am convinced that these cooperations can also be instrumental for global expansion. Of course, we should not be naive: as a European company, you should carefully screen your Chinese partner and make sure to protect your intellectual properties.

Let’s first look at EU companies that want to enter the Chinese market with their products and technologies. In the past years I have seen many EU companies struggling to enter the Chinese market. Therefore, rather than competing against Chinese firms with established networks and a deep understanding of the Chinese market, partnering with Chinese companies allows EU companies to use these partnerships with Chinese companies as leverage. Additionally, when entering China, there can be quite some obstacles in terms of regulations and culture differences. Therefore, it is easier to enter the Chinese market when you have a good Chinese partner.

China is already a global leader in various technological domains, including artificial intelligence, 5G, smart manufacturing and renewable energy. EU companies obviously also have advanced technologies with great potential in China, but EU companies often lack the necessary funding and resources to bring these technologies to market. Therefore, by cooperating with Chinese tech companies, EU firms can gain access to cutting-edge technologies and innovations that may not be readily available elsewhere. This exchange of knowledge and resources can accelerate the development of new products and services, improving the competitive edge of EU companies in both local markets as well as global markets.

China is no longer a low-labour-cost-country. Nevertheless, it is still ‘the factory of the world’ with 30% of global manufacturing being done in China. In recent years China is known for its efficient manufacturing processes and cost-effective labor force. Through shared investments in research and development, EU companies can minimize financial risks while maximizing the potential for innovation. As a consequence, EU firms can allocate their resources more effectively, and they can focus on areas where they can add the most value.

I am convinced that, through cooperation with Chinese companies, EU companies also can get more competitive for global expansion. The synergies created by these partnerships can create products and solutions and open new markets and new customer segments that may have been inaccessible previously.

To conclude, only if you go to China and proactively look for business partners, you will be able to better understand your competitive situation and look for opportunities for cooperation. The CIFTIS expo is certainly a perfect event to go to China and meet with potential partners. Horsten International is ready to assist you with finding trustworthy partners in China and guide you through the entire process.