Recap | GWA "China Plus One" - Chongqing Edition

The China-Italy Chamber of Commerce (CICC) together with Greatway Advisory (GWA) are pleased to announce the successful conclusion of the China Plus One (C+1): Business Talk & Executive Networking event, held on October 19th, 2023, in Chongqing.

To discuss the current state of doing business in Asia, the CICC and GWA gathered about 25 guests among clients and friends of the firm, foreign and domestic companies, industry leaders, and relevant enterprises for an executive meeting to share perspectives, seek expert opinions, and analyze relevant business cases.

On June 6th, 2023, the same format was successfully held in Vietnam by GWA's team in Saigon. Considering the relevance of the topic and to have the most possible comprehensive view of it, GWA decided to host the business talk in all their branch offices and in other key relevant areas. On June 29th in Shanghai (China), to be back again this October in Milan (Italy), Guangzhou (China).

Our guests were invited to share their expert opinions according to their specific fields, for Chongqing edition, particularly from the high-tech manufacturing, automotive, semiconductors and mechatronics sectors.

Organizers were honored to have opening remarks by Mr. Fabio Schina, the Consul general of Italy in Chongqing, who expressed his interest due to the relevance of the topic, while confirming the commitment of Italian Institutions to assist and support businesses, especially in strengthening more and more the relations with local institutions, create more opportunities collaboration between Chinese and Italian companies, in order to reach an even higher degree of common benefit and prosperity.

Chairman of China-Italy Chamber of Commerce, Mr. Paolo Bazzoni expressed gratitude for the opportunity presented by GWA and emphasized the CICC hands-on approach to working closely with companies in various regions, particularly in China's Southwest. The Chairman mentioned China with shifting dynamics is no longer solely a developing country. Instead, he emphasized the importance of promoting innovation and technology while delivering Italian quality across sectors and the value of fostering a supportive business environment. Mr. Bazzoni invited italian companies to study the market and its evolution, carefully plan their strategies and reshape in order to better seize opportunities ahead. His remark concluded with a commitment to support Italian companies in expanding their presence in China.

Mr. Daniele Zibetti – GWA Managing Partner emphasized the importance of business and merchants in strengthening relationship between companies from different countries in these times of changes of policies and market trends. Mr. Zibetti analyzed GWA’s business case as “China+1”, reporting that the firm has been continuously expanding its presence in Asia continent via direct investments and strategic partnerships, to support its clients doing their business in the region. In talking about pros and cons of some “+1 countries” he remarked that, despite the current trend of companies expanding abroad and benefitting from it, China’s unique infrastructures, logistical and supply chain advantages are challenging to be replicated elsewhere, determining companies’ presence in China still pivotal to their Asian and global growth.

Saic - Fiat Powertrains General Manager - Mr. Giovanni Violano gave an overview of the company extensive manufacturing operations in China. Fiat Powertrains (currently Iveco Group) invested almost 15 years ago in China in consideration of the significant market potential, in partnership with very well-known domestic SIAC group. Mr. Violano streamlined last years’ market fluctuations in the field of commercial vehicle engine manufacturing and analyzing strategies to navigate them. During his insightful contribution he stressed on the importance of products diversification and research and development, for which the company is investing very considerable amounts of resources, with their R&D centers in China and across the world.

The Founder & CEO of Bplan technology, Mr. Alberto Borini, shared its experience as founder of a company operating in China in high-tech and R&D sector. Mr. Borini presented its company operations and updated the attendees on the automotive software market, adding a general overview of the tech session. Its contribution provided valuable insights on new technologies, policies involving motherboards and other components, analyzing how companies are adapting their strategies in consideration of the trade war. Mr. Borini concluded that China market is vital due to its high-tech potential and if the companies will react quickly new opportunity can be found in China-centric product design, and generally in China’s new tech growing environment.

Finally, Mr. Paolo Bazzoni, join the conversation again in consideration of his role of Member of the Board Bonfiglioli Drives, part of Bonfiglioli Group, joint stock company with global presence which includes entities around Asia, particularly in China and Vietnam, and that operates in wind, industrial, and mechatronics solutions. Being present in Asia for a long time with diversified investments, Bonfiglioli served as a great business case for the event, incarnating a “China + many” company. Mr. Bazzoni emphasized the importance of diversification and a regionalization as a strategy, as per Bonfiglioli Drives, still with a focus on the Chinese market and its potentials for growth. To remain competitive, Mr. Bazzoni suggested a lean approach, to generate cash, and diversify risk management.

Moderated by Mr. Filippo Sticconi - GWA Senior Associate, the business talk served as valuable platform to gather insight from different sectors regarding current market changes in China and Asia.

Recap of Guangzhou and Chongqing sessions: the market is changing rapidly, and many companies are adapting and undergoing structural reorganizations to undertake forms of diversification of their investments. This is for several reasons, such as mitigating geopolitical risks, or for supply chain, logistics, and tax related optimization.  In this scenario at current stage, China still confirms its central role in Asia and on a global scale. However, more and more companies are implementing a form of the C+1 strategy, and this trend could generate opportunities for many neighboring countries and synergy between them.  Lack of planning in this respect could lead businesses slow down their competitiveness on a global scale and missing to tap into new opportunities in the neighboring markets. On the other hand, moving away from China too much and too fast may be more detrimental than beneficial.

Our thanks to all the attendees for their active participation and insightful contributions to the business meeting.

CICC Team