Menu

The Shanghai Free Trade Zone And Composite Opportunities

China’s market is of enormous interest to many businesses. With a large economy it can provide an opportunity to export to export to many consumers. With a customer base that is anticipating the manufactured goods both commercially and privately, it can cater to China’s growing industrial base and provide opportunity for composite manufacturers.

The Shanghai Free Trade Zone And Composite Opportunities

Sitting on the cutting edge of this opportunity you’ll find The Shanghai Free Trade Zone.

The East Opportunity

China’s scale of opportunity has shown in recent reports through The Irish Research and Markets. This report was published on January 11 and predicts an impressive growth of the demand for composites. The China market growth alone is estimated to be 11.5 billion by 2018.

Major markets for composites include transportation, electronics as well as construction and have grown significantly since 2012. They show no signs of slowing down in the near future. Many joint ventures with the Chinese companies are being established in order to make the most of this growth trend and they will require high volume production as this growth continues.

This opens up an opportunity for everyone including major composite products export to composite tool designers.

The Shanghai Free Trade Zone

SFTZ, Shanghai Free Trade zone, was established in September of 2013. It provides an opportunity as a sign of what is in store in the future.

Following up a previous experiment, Shenzhen of the 1980s it’s a small part of the City in which more liberal rules have been applied to businesses. These rules include borrowing and investing. They are looser in this zone than all the rest of China. The bureaucracy that businesses face is more significantly reduced here. As an experiment of China, it allows more involvement of foreign businesses and foreign investors. It also provides many opportunities for all of the companies involved.

Composites Manufacturing and SFTZ

The most dramatic of changes in the SFTZ are the financial sector. This has created new opportunities and manufacturing needs.

The zone is only a small area of a few square miles but it’s based on the mainland of China thus creating an ideal location for businesses who are seeking to expand within China. These businesses can easily be headquartered in the zone and base any key activities there. This increase their distribution opportunities to the surrounding mainland.

Drawing upon liberalized investment rules for financial support, the businesses have made it easier to maintain foreign business and cooperate with one another as well as with China in the supply chain.

SFTZ provides an opportunity for composite products to move from consumer to consumer industries. The high wealth and unrestricted lifestyles of those who work within this area create markets for many consumables that are considered luxuries in other parts of China. Products and tools are readily provided to produce these and will continue to create a micro economy of the composite products within the area. More and more of the SFTZ profits will channel into the hands of manufacturers and the exporters in the area as well.

The Hold of The Future

It’s important to remember that not just the opportunity of the SFTZ area, but also the market should be involved in this endeavor. That is what SFTZ will represent to the future of business.

The area has the backing of the Chinese Premier named Li Keqiang. As a trained economist, seeking to liberalize the country’s economy and accelerate growth, it’s imperative to keep this going. If successful, he’ll certainly extend the liberal regulations to the all of China. Companies involved will now have a strong foothold in the market and be able to make the most of this opportunity.

Composite manufacturers who choose to be involved in SFTZ aren’t just taking an opportunity, they’re investing time in one of the most important world markets.

Citations:

Amy Rice writes about composite manufactuers, when not writing she enjoys walking and dining out with friends.