BUSINESS: Somerset should still work with China

THE recent economic volatility in China should not deter businesses from the international trade opportunities that the country offers - says the chief executive of the Somerset Chamber of Commerce.

Neil Murphy, commenting on the recent turbulence in the Chinese economy, said: “It is far too early to suggest that the situation in China is a crisis, and that this is likely to have dramatic long term implications for Somerset businesses.

“The Chinese market, amongst others, represents a substantial growth opportunity for local companies. There has been interest shown by local manufacturers in exporting what is seen by the Chinese as premium brands, and many local businesses have established contracts with Chinese companies.

PHOTO – RIGHT: Somerset Chamber of Commerce chief executive Neil Murphy.

“However the overall impact on the Somerset economy resulting from any downturn in the Chinese demand will be marginal, as this destination represents a relatively small proportion of Somerset’s exports.

“The potential of China as an export destination for Somerset businesses is enormous. Any impact on the pace at which these opportunities could develop will clearly be a setback to the export strategy of those businesses focusing on China, but it will not eliminate the opportunities altogether and some perspective on the recent news has to be taken into account.

“China is still expecting growth in the region of 7% this year, which is a figure that most developed markets would be delighted with.

“There are serious and significant economic factors that are affecting the Chinese economy, and the Chinese government has taken measures to arrest the decline in the Chinese stock market, including devaluation of the currency to boost exports. There are also natural ‘correction’ factors that take place in markets that grow aggressively, and it will be several days and weeks before we understand if the current hiatus has a long term impact on the global economy, or if this is an example of the Chinese market correcting itself.”

The Somerset Chamber of Commerce works closely with UKTI to provide international trade support and services for Somerset businesses. It also has close links with the China-Britain Business Council and the Chinese Embassy.

Somerset businesses wishing to get further advice on doing business with China – or with any other international markets – are advised to contact the Chamber on 01823-444924 or by emailing export@somerset-chamber.co.uk.

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