Perspective John Jullens Hannu Suonio Tony Tang Sino-Finnish Paths to International Competitive Advantage Contact Information Booz & Company John Jullens Partner Suite 2511, One Corporate Avenue No. 222 Hu Bin Road Shanghai 200021, P.R. China Tel: +86 21 2327 9800 Fax: +86 21 2327 9833 Blog: www.johnjullens.com
[email protected] Booz & Company Oy Hannu Suonio Partner Mikonkatu 15B, 7th floor Helsinki 00100, Finland Tel: +358-9-6154 6614 Mobile: +358-40-511 9324
[email protected] Booz & Company It may seem ironic that China’s future depends increasingly on the country’s EXECUTIVE ability to forge new paths for growth through international expansion. Over SUMMARY the last 30 years, China has grown at a breakneck pace, largely because of the West’s insatiable appetite for goods that China produced with its near-limitless supply of low-cost labor. But success breeds its own challenges. Rising wages are gradually eroding China’s low-cost advantage, and the country’s continued progress now increasingly hinges on its ability to transform itself from a low- cost to a high-value economy. Some of China’s best opportunities for target sector is in a “sunrise” or glob- developing the capabilities and acquir- ally mature industry. These criteria ing the technology needed to make serve as the basis for our Market that transition are to be found abroad Opportunity Matrix, which charac- and can be captured only through terizes four broad opportunity sets for partnerships with foreign entities. Finnish and Chinese companies seek- ing international partnerships. Finland also needs its companies to expand internationally to drive overall The first part of this report explains economic growth.