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Chinese companies could become the largest grouping among the Fortune Global 500 by 2040 according to 60% of the 700 business leaders, government officials, leading academics and futurists from across 60 countries who participated in the survey entitled, "The Future of China's Economy, The Path to 2020 - Opportunities, Challenges and Uncertainties."
The survey, conducted by Global Futures and Foresight (GFF) and Fast Future, found other sweeping changes ahead:
Even with the knowledge of the importance of China as part of a strategic business plan, Europe and the U.S. are lagging behind their Asian counterparts in their plans for the Chinese market:
"Many still seem to hope the 'China issue' will go away -- but hope is not a strategy. Western businesses need to recognize the opportunities that this powerful market presents and face up to the challenges. Business leaders are clearly worried about the impact China will have in their own markets and on western business practices. However fear of the unknown, a lack of market knowledge, language barriers, limited cultural understanding and concerns about corruption and bureaucracy are leading to hesitancy and inertia. The way forward is to start developing true market insight, take the first steps and learn by doing," said Rohit Talwar, CEO of GFF.
The study also found that there is a clear expectation that China's market power will transform the way the West does business.
China has been very active in pursuing its goals. "Chinese firms have increasingly ambitious overseas expansion plans and want to prove themselves in global markets. At the same time your competitors may be sourcing or manufacturing in China and taking advantage of the cost savings to compete with you in your domestic markets. Businesses of all sizes need to be clear on how they will respond," said David Smith, CEO of GFF.
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