Rising Tides From The East

The maxim "a rising tide lifts all boats" has been bouncing around my head for the last few weeks. While this phrase is generally associated with how improvements in the general economy tend to benefit all participants in that economy, some recent events have put a strong Chinese filter on this for me.

In my role with the Ireland China Business Association, I am in the fortunate position of having first hand exposure to some of the trends that are emerging from the east, and China in particular and I wanted to share some thoughts on these.

Enterprise Ireland Event

On the 25th of April, Enterprise Ireland hosted its first large scale Routes to Growth Asia Pacific event in the Aviva Stadium. If you wanted a litmus test to gauge the level of interest in China and the wider Asia Pacific (APAC) region in Ireland, then this was a definite positive result. Over 400 people registered an interest in attending this event. The event was an excellent networking platform giving those who had an emerging interest in the opportunities presented by APAC the chance to meet with Irish entrepreneurs who had been there and successful built lasting commercial success. Speakers like Barry Napier from Cubic Telecom or Elaine Coughlan from Atlantic Bridge shared first hand experience of how they’ve successfully navigated the (occasionally) choppy waters when doing business in China. Economist John Ferguson also described how the Chinese leadership wants to deliver a “modestly prosperous society by 2020” representing a significant opportunity for those Irish businesses who have the products, services and patience to target the Chinese market.

Irish Beef “meats” Emerging Chinese Demand

After 18 years, China announced in mid-April that it will re-open its markets to Irish beef. Since the BSE scandals that rocked the European beef market in the early 2000’s, Ireland has been locked out of the Chinese market and despite increases in domestic beef production in China, consumer demand for premium imported beef is set to rise significantly. This presents a huge volume opportunity for Irish beef while also reinforcing the high quality, premium positioning associated with Irish beef. In a context where the total Irish agri-food trade exports to China reached €974m last year, and it is now Ireland’s third-largest market overall, this announcement looks set to swell this trend even further.

Access Through Direct Flights

Accessibility is a major driver for any global trade and without any direct flights from Ireland to mainland China or Hong Kong, Ireland’s ability to build on existing relationships or create new commercial opportunities has been somewhat hamstrung. However, all that is about to change. From this summer onwards, Irish businesses can access the Chinese market through direct flights with Cathay Pacific (Hong Kong) and Hainan Airways (Beijing). This is not only a game changer for Irish businesses wishing to do business in China but it also represents a huge opportunity for Irish businesses to service the expected wave of inbound Chinese tourists.

Beijing-Dublin Mutual Investment Forum

Continuing to build on this momentum, this Friday the 11th of May, Dublin Chamber will welcome a delegation from Beijing as part of the Beijing-Dublin Mutual Investment Forum. The significance of this visit should not be underestimated. It reinforces the direct links between Dublin and Beijing while giving Irish businesses managers access to some of China’s most senior political leaders.

All rising tides give opportunities for those prepared to rise; those that aren’t prepared risk losing out. For any business with global aspirations, it may be time to start building your China-Ready vessel or join a boat that can help you take advantage of this opportunity.

The Ireland China Business Association is always ready to welcome new members.