Asia: More than the Sum of its Chinese Parts

There is more to Asia than China - To succeed in the Asian Century it will be important to look beyond the Forbidden City.

Too often in Australia we think and talk of Asia as being China. Government strategies, political rhetoric, journalistic commentaries, and in many cases business strategies look to China as the be all of Asia. This is a simplistic and dangerous view to hold. China undoubtedly is a thriving and impressive market with somewhere around 1.3 billion people, including over 250 million in the middle class. It is the world’s largest country by population and will soon overtake the US as the world’s largest economy. China is a vast country stretching from the pacific coast in the East to Central Asia in the West, Russia and Mongolia to the North and India and the Himalayas to the South. Mega cities are abundant seeking to buy and sell all the worlds fare, while the resource potential is emerging anew with exploration and exploitation of rare earth minerals, and shale oil and gas reserves. China is clearly a behemoth, and it is important for any business and sovereign western government to plot a clear strategy for engagement with China. Asia however is more than just the sum of its Chinese parts.

Unfortunately I hear and see too often “Asia” being used as a proxy descriptor for “China”, which it clearly is not. We must remember that Asia is a vast continent which includes South Asia: Pakistan, India, Bangladesh (1 . 5 billion), Central Asia: Uzbekistan, Kazakhstan, Tajikistan, Kirgizstan, Iran etc (500million), and South East Asia: Indonesia, Vietnam, Thailand, Malaysia etc (600million). The rest of Asia dwarfs the population and labour resource potential of China. Asia makes up around half the world’s population. It is important to place this scale of opportunity into perspective.  The trade opportunities in these other Asian markets are equally impressive. Central Asia and Indonesian have abundant oil and gas resources, while in many countries there are rare earth minerals amongst other mineral resources readily sought on global exchanges. Indonesian for example is now the world’s largest exporter of Coal.

We should remember also that in addition to China, India and Indonesia make up three of the four most populous countries in the world…..and two of these markets are democracies ( India 1 billion, and Indonesia 250 million). The population size of other countries in Asia provides a renewed opportunity for manufacturing in the region from a non-Chinese market. The labour supply in Asian Countries such as Indonesia and India provide an opportunity for international manufacturers to tap into location benefits that can arise from proximity to sales markets and global supply chains.  The market opportunities in Asia are indeed more than just China and many successful companies are developing strategies to tap into these emerging market opportunities. So when you next hear a politician, businessman, journalist or man on the street talk of Asia….ask them which part? If businesses are to truly succeed in the Asian century they will need to actively build a strategy that goes beyond solely a China Strategy, as Asia is a big place, and increasingly likely to be the economic super region of the future.

f you would like to meet with me to discuss how I can help you and your organisation achieve success in the broader Asian markets, or you would like to discuss new opportunities emerging in the near future, please send me an email (nathan@asiaaustralis.com). Alternatively check-out my LinkedIn Profile and the website of my company AsiaAustralis.

Advertisements

The Path to Success in the Asian Century is more than just a China Strategy

Premier Weatherill identified the importance of Asia to South Australia, and identified a number of markets throughout Asia.

On Thursday I attended the Australian British Chamber of Commerce Luncheon: Succeeding in the Asian Century. It was an opportunity to hear from South Australian Premier Mr Jay Weatherill and the British High Commissioner to Australia Mr Paul Madden About their visions of the current and future trading, business and Investment opportunities in Asia. Both speakers were engaging and spoke of both the long held cultural values and business links between South Australia and Britain, and how there were opportunities for collaboration and partnership between British companies and South Australian companies to take advantage of the Asian Century. There was however a striking difference in the outlook of the two speakers.

The South Australian Premier perhaps constrained by domestic political considerations had a conservative outlook with regards to Asia. He spoke of the need to increase the export growth to Asia, and made particular mention of opportunities in China. South Australian export growth had grown by a larger percentage over the past 12 months than the other Australian states. The specific industry sectors that lead the export growth were described as the Wine and agricultural exports, and of course the future mining boom which will undoubtedly lead to further export growth in the decade to come. There was however a limited future vision of Asian expansion and future business engagement. Indeed the British High Commissioner perhaps provided a greater insight into the logical future movements into Asia.

The British High Commissioner spoke of his time as High Commissioner to Singapore, and of the enduring British legacy in the Asian region. But perhaps the surest insight into South Australia, and Australia’s future business outlook was contained in an answer to an audience question. The luncheon was attended by just short of 100 business leaders. One businessman asked of the speakers, why there seemed to be no strategic focus upon Australia’s largest, closest Neighbour – Indonesia. Unfortunately the Premier was unable to discuss a specific trade focus upon this country, other than to remind the audience that Indonesia was an important regional market. The High Commissioner, however spoke of the important business links between Indonesia and the rest of South East Asia, and how British business had entered Indonesia through their exposure to the Singaporean and Malaysian markets. He spoke of the obvious geographic proximity to Australia, and the undoubted market and population size (upwards of 250 million people) which should prove attractive for Australian and indeed South Australian business.

The luncheon provided a good opportunity to hear of the opportunities in Asia, and the success that was already occurring with Australian exporters in the region. The great pity of the luncheon was that it took a British Diplomat whom has a home market the other side of the world to truly identify the opportunities that exist right across the Torres Strait and Timor Sea in Indonesia. Let’s hope the Premier is able to grasp the market opportunity that exists in South East Asia and specifically Indonesia to help South Australian Companies succeed in this Asian Century.

If your company is looking to tap into the increasing demand for food in the Indonesian market, please feel free to send me an email (nathan@asiaaustralis.com), and we can have a chat about how AsiaAustralis can assist your company meet the needs of the Indonesian market. Alternatively come along to the Australia Indonesia Business Council Business Forum – “Identifying opportunities for primary industries in the Indonesian market”  in Adelaide on Friday 30th March, click the link to register and for more information.

%d bloggers like this: