Several weeks ago the Chinese government announced its intention to embark upon a new urbanisation programme to 2020. Whilst news of this was reported by the FT, the Economist and elsewhere, it seems that no one has yet noted either its size, or the massive opportunities this opens up for Western businesses. From now until 2020 there is potentially a trillion dollars worth of new opportunities for Western businesses off the back of this programme. So far, very few businesses seem to be marshalling themselves to reap the potential benefits.
Simon Cheung a Director at the London consultancy Zhangsmith Limited was reading about the programme in the Chinese media when he discovered that the country’s Vice Minister of Finance had estimated its cost to be around US$6.8 Trillion (Yes, Trillion!). The report he read also detailed specific targets for the programme to meet by 2020 and acknowledged various lessons China had learned from its urbanisation experiences to date. Upon appreciating the targets, China’s domestic capabilities and the estimated costs, the massive opportunities for various Western businesses become apparent.
The magnitude of the opportunities now opening in China should be massive news, but as the weeks have rolled by, Simon has been amazed that no one has covered this aspect of the programme. Why this has so far not been reported may be due to the following two issues. The report detailing specific programme targets which were then commented upon by the Vice Minister of Finance may not have been officially translated into English. Also, less than two weeks after its publication, another major report on the same programme, but not covering the specific targets, was jointly published in English with the World Bank.
As it is now over a month since both the original and World Bank reports were published Zhangsmith have prepared their own short report on the opportunities so as to alert Western businesses. Zhangsmith estimates the new opportunities for Western businesses to directly service the program to be worth around $100Bn each year up to 2020 and beyond. They also estimate that additional demand for consumer goods and services as a result of the programme will lead to total new business opportunities for the West, worth around a trillion dollars to 2020. As a new consultancy set up to aid businesses in Europe and China, Zhangsmith are happy to assist those wanting to know more.
Zhangsmith’s report can be found at www.zhangsmith.com/chinato2020.pdf
Zhangsmith Limited, 4th Floor,36 Spital Square,London E1 6DY,England
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Simon Cheung E: email@example.com M: +44 (0) 790434278
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