MILAN, Feb. 23 (Class Editori) -- Italian SMEs that invest in China are increasingly considering the country as an attractive export market for their products. This emerges from the study on Italian SMEs carried out by the Research Center for Enterprise of the Italy China Foundation (CeSIF) and presented today.
The report titled "The role of SMEs in relations between Italy and China: analysis of the scenario and indications of business partners and enterprises", is based on a pool that involved 180 Italian SMEs that invested in China. "These are the companies that most need help" to play a role in the most dynamic market in the world, Mario Boselli, President of the Italy China Foundation, explained, also adding that "giants do not need any help, but the industry beneath does" and that "this research aimed to understand what their real needs are".
China has been the "first country to get out of the COVID-19 pandemic" and the only major country in the world to grow. "Today every enterprise should be present in China, even if it is not always easy," Boselli added.
In 2018, Italian SMEs traded with East Asia for a total amount of almost 47.2 billion dollars, which means 58.1% of the overall Italian trade in the region: Italian SMEs' export to East Asia reached 19 billion euros. Today their export to China amounts to 6.5 billion euros, while import to 20.2 billion euros.
The analysis also shows a change in the reasons that bring Italian SMEs towards the People's Republic of China 76.34% of the sample: in fact, sees the option of the "export market" as the main reason of the company's presence in China, 12.2% indicates the People's Republic of China as a "delocalized production plant", and 11.45% considers the country as a "regional hub".
"Between the enterprises that responded to the questionnaire, China is increasingly seen as an export and consumer market and no longer as the world's factory," Marco Bettin, Chief Operating Officer of the Italy China Foundation, explained. Evidently, many of the small and very small Italian enterprises are frightened by the difficulties that arise when operating in that large market and that concern respect for intellectual property, language and finding a partner.
On the other hand, the considerations emerging from the 180 SMEs interviewed in Italy are contradicted by the 360 interviews carried out in China with companies associated with the China-Italy Chamber of Commerce (CICC) in Shanghai at the end of last year, from which a strong optimism on business prospects in that country emerges, even from managers of smaller companies who landed in China in the last three years.
All this clearly indicates the difficulty for an entrepreneur who does not have sufficient capital reserves in making the leap from seller to direct investor, a change that is now considered indispensable for an economy seeking growth.
The Foundation's interventions are based on this approach and aim to improve the digital presence of SMEs, promote them on the Chinese market, match them with Chinese partners, strengthen the cultural and linguistic skills of companies, and foster a better competitiveness of the system and coordination at European level as well.
Suggestions for China are to improve the protection of intellectual property, to create matchmaking platforms between partners, to strengthen the Belt and Road Initiative for businesses and to encourage Italian investments.
Today's presentation was attended by Li Bin, the Minister Counsellor for Economics and Trade at the Embassy of the People's Republic of China in Rome. Li Bin recalled that "China has entered a new phase of development and will continue to create an innovative growth model", which will allow "Sino-Italian cooperation" to offer "more and more opportunities in many sectors, such as digital economy, medicine and healthcare, green energy and environmental protection." He also recalled the "special" role of China and Italy at the two ends of the Silk Road, mentioning the Belt and Road Initiative. (All rights reserved)
(Source:Class Editori)
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