David Thomas

We live in the Asian Century. In the coming years, China, India, Japan and Indonesia will become the largest economies in the world, driven by innovation, productivity and domestic consumption from their large and fast growing middle class and high net worth populations. Smaller Asian countries like South Korea, Malaysia, Thailand, Vietnam and the Philippines are also emerging as economic powers in their own right, as the World tilts towards Asia and business leaders, entrepreneurs and investors seek access to the high growth markets of the region. Not surprisingly, this massive shift in the projection of global power, influence and leadership is causing disruption in the world, especially in the US and Europe who are threatened by the rise of powerful authoritarian countries disturbing the existing rules based world order, challenging old and well defined borders and creating conflicts in faraway places. How should we think and react to all of this? How do we feel about China, the rising economic, military and investment super-power on our doorstep? How do we navigate the complexities of the US - China rivalry and build new relationships and create opportunities in the Asian region?

China’s major challenge is to deal with the massive deficit in its GDP caused by a traumatic, deep and far-reaching property crisis and the longer term impacts of the global pandemic. Consumer confidence is severely impacted and it would seem over-optimistic to believe that this gap can be filled by a rise in domestic consumption. As a result, China is rapidly investing in its advanced manufacturing sector to boost domestic growth, stimulate exports and create new jobs for their highly educated and youthful workforce. Much of this innovation will come from overseas, at least in the short term. The innovative and high-tech companies of the future now need to commercialise, capitalise and scale their technology and products into the Asian region, starting with the traditional investment and logistical hubs of Hong Kong and Singapore, and moving north into southern China and south into ASEAN. Australian entrepreneurs with access to innovative technology (especially in health, AI, fintech, food, agtech, clean energy and others) now have a unique opportunity to access early stage funding and investment in Asia.

Despite some of Asia’s significant economic advances in recent times, their approach to doing business remains refreshingly similar to the way they’ve done business over the past one thousand years i.e. they only do business with people they know, like and trust. Business executives, entrepreneurs and professionals need to deal with people of other Asian backgrounds to deliver successful commercial outcomes, and it’s become critical for leaders to learn how to communicate, negotiate and connect with senior decision-makers and business leaders from both sides of the cross-cultural divide. Working with Asians can be rewarding and highly lucrative but it can also throw up cross-cultural differences and challenges which can cause frustration, stress and even conflict on both sides. Addressing, understanding and resolving areas of difference, especially when communicating and negotiating with Asian investors, entrepreneurs, partners and employees, is a skill that can be learnt and applied in high stakes situations, as well as in everyday interactions.

There has never been a better time for foreign entrepreneurs and business leaders to consider entering the China market despite negative noise, media and commentary to keep you away. Consider the following: - China’s economy today is driven by domestic consumption (now 80% of GDP growth). This is the time for foreign businesses to tap into the fast growing local demand for world class products, goods and services. - China invests more money in innovation (USD60 billion) than any other country in the world and is determined to become a global leader in areas like high value manufacturing, healthcare, environmental protection, technology and education. Foreign entrepreneurs must now participate in this innovation story. China has the money and the market to transform the lives of foreign entrepreneurs and business leaders who are willing to invest the time, money and effort to: - understand the local market via on the ground market research and intelligence - embrace the cultural differences involved in working with chinese investors, entrepreneurs and business leaders - Commercialise their products, services and capabilities into the key sectors which are driving China’s transformation David Thomas has spent a lifetime uncovering opportunities in modern China and inspiring business leaders and entrepreneurs to take their first step into the China market. He delivers unique skills, practical insights and long term experience on the ground to every presentation. His audiences enjoy his anecdotes, case studies and stories from travelling around China for the past 30 years.