China still top automation destination

Speakers at industry body CC-Link’s “Gateway to China” exhibition at Mitsubishi Electric’s UK head office on Tuesday emphasised that local contacts were critical for technology providers looking to establish themselves in the booming Chinese automation market.

According to John Browett, general manager for CC-Link, “the Asia-Pacific region now accounts for nearly half of all global automation sales and is still growing”, while Mitsubishi Electric marketing and operations group manager Chris Evans added that the Asian automation market was now valued at £50 billion.

It is essential to build a relationship with bigger companies to more readily be accepted by Chinese businesses

Berners Consulting president Lutz Berners

China’s process automation sector in particular has seen exponential growth since 2002, boasting a 40% increase in 10 years.

Gambica’s industrial automation sector head Steve Brambley said: “Considering 46% of the global spend on automation products comes from China, it is a good time to break into its process automation sector – but new companies must be quick as growth is steadily slowing.”

However, to begin business in this sector the speakers argued that the true gateway to China is through the partnerships formed with market leaders and those already recognised within industry.

“The Chinese will gravitate heavily towards the market leaders, so it is therefore essential to build a relationship or a link with bigger companies to more readily be accepted by Chinese businesses,” said president of Berners Consulting Lutz Berners.

Those companies wishing to break into the Chinese market effectively can do so through the various support systems in place. Process and automation firms are advised to utilise the China Business Advisory, CC-Link Partner Association and government departments such as the China-Britain Business Council.