Entering the Chinese market is on the to-do list of many businesses, but unfortunately the market isn’t very accepting of foreign companies and goods. There have been many cases in the past wherein foreign companies have been driven out of the country by homegrown competitors. One such classic example is China’s ride-hailing startup Didi chasing out ride-hailing superpower Uber from its country last year. But, here’s the good news for Indian entrepreneurs and startups wanting to get a taste of the Chinese market. The Indian government and Nasscom have recently entered into a memorandum of understanding (MoU) with China’s Guizhou, a mountainous province located in southwest of the country to encourage Indian entrepreneurs to come set up their businesses there.
Harbouring the largest population on Earth, China’s economy has continued to grow by double-digit rates over the last couple of years. With this impressive growth, the country is expected to overtake the US as the second largest global economy by 2020 and destined to remain an engine of global growth for the next ten years. These lucrative growth figures attracts a lot of businesses to the country but the country’s market isn’t particularly easy to enter because of a lot of norms and regulations. But, fortunately the MoU with Guizhou will prove to be a sweet entry ticket for Indian entrepreneurs and startups into the country.
China’s Guizhou has been gaining ground as an emerging point of the country’s Big Data and Internet of Things (IoT) initiatives, with 12 data centres already under construction. The province, which has the presence of some of the biggest technology giants in the world like Apple, Amazon, Alibaba, Baidu and enterprises such as IBM, HP, Infosys and Dell, aims to leverage the developments being witnessed there and built itself into a smart city.
The province of Guizhou was recently in the news for hosting the Big Data Industry Expo, which saw the presence of a whopping 87,000 attendees from all across the globe. For the unversed, the Expo showcases IT possibilities and opportunities, and is a discussion ground for various current topics affecting the industry like artificial intelligence, digital economy etc.
Commenting on the MoU signed between Guizhou and the Indian government and Nasscom, Sun Zhigang, Guizhou’s governor, drew parallels between Guizhou and Bengaluru and said that Indian businesses coming here could take advantage of the favourable policy environment, availability of resources and convenient transportation facilities in order to spur the growth of their startups/businesses.