By Brierley Penn
China is at a tipping point and things will change for the better for businesses within weeks, according to Alan Carroll, executive chairman of Carroll Partners International, speaking at the China Business Summit this afternoon.
Even in the last six weeks, the situation in China has changed.
Carroll emphasised China is a country of ongoing reforms, and the majority of these changes will surround the domestic capital market and the role of the country’s state-owned enterprises. He said it is imperative that China professionalizes its SOEs and the government is in the process of addressing these issues.
Carroll said as China learns to move up the value chain, New Zealand needs to adapt its strategy to respond to these changes. The size of China’s middle class will soon reach 200 million citizens, and its the private sector is going to have a bigger role to play in the country. Its banking system is also soon to face changes.
“It will take them a lot of courage, but it’s coming. We are about to see big changes under a new government.”
The country’s rapidly expanding middle class need good food, they need greater professionalism and they need to list their companies offshore. According to Carroll, “The whole thing is shifting, and in six weeks we will see it emerge. The role of the PLA (Peoples’ Liberation Army) will be a lot less.
“There is a big shift going on in China, it will break the four winds, land reform is coming.”