Chinese Market Assessment – Inner Mongolia

Think China, think Inner Mongolia!

China is, for many people, alien and difficult. The language, the culture, the distance all make it seem very strange. Many people have also heard tell that the country is an extremely difficult place in which to do business. They (mistakenly) think that it is Communist.

The first response to this is that you should never make generalisations about China or leap to conclusions.

Inner Mongolia is a land of stunning beauty, but for investors who think first of Shenzhen, Shanghai or Beijing, the idea of looking to this vast region must initially seem alien. However it is home to some of China’s almost successful companies whose niche products are offering considerable growth opportunities.

The Inner Mongolia Autonomous Region occupies one eighth of China’s land area. Home to only 24 million people, it stretches 2,400 kilometres from east to west. Forested mountains, tundra and sever winters characterise the north east; sand deserts cover much of the west, while central areas are mainly grassy plateaus over 1000 metres above sea level.

The Golden Triangle of Hetao Plain, in the Great Bend of the Yellow River, is the main area of economic activity. The regional capital Hohhot and industrial powerhouse Baotou are located there. Modern railways and a new expressway connect with Beijing, only 45 minutes away by air.

Much of China’s international trade with its northern neighbours goes via Inner Mongolia, particularly through Erenhot (to Mongolia) and Manzhouli (to Russia).

At B2B International China we have seen a great enthusiasm from our Western clients to expand into China. From all the market assessment research we have carried out, Inner Mongolia hasn’t been on the radar due to its remoteness until now. However, with many transportation problems recently overcome, Inner Mongolia is definitely worth looking at. For more information on entering Chinese markets contact our Beijing office via www.b2binternational.com/China.

Adapted from an extract from China-Britain Business Review by Brian Connolly (Sept 07) – http://www.cbbc.org/

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