Italy needs to support the growth of its companies in China,chairman of Italy’s insurance and financial group SACE GiovanniCastellaneta told Xinhua in an interview Thursday. As the Chinese market has stepped into a “mature” phase ofincreasing inner consumption and high-quality production, there arenow a variety of fresh opportunities for Italian companies,Castellaneta said. The Asian country is attractive to companies that see it as theirdestination market, especially for those who see China as a newplatform for growth and development, he said. SACE supports the competitiveness of Italian companies abroad byproviding credit insurance, safety bonds and financial guarantees. Some 2,000 Italian companies have established themselves in Chinawith diversified investments. Caterpillar Scanner
“However, Italian companies’penetration rate in the Chinese market is still inferior to thepotential,” Castellaneta said. “The contradiction between the Western world considered as a bigmarket, and China seen as a big exporter has been finally overcome”as highlighted by several professionals during the China CapitalSummit held in Milan on Thursday to deepen mutual knowledge betweenChinese investors and Italian businesses, he said. The old model has been overtaken by a new balance “in whichEuropean and Chinese companies can compete fairly and transparentlyon a level playing field,” he said. Castellaneta said Italian companies should firstly broaden therange of their products, as domestic consumption, mainly among theurban population and younger generations, is growing in China. China Remote Control Duplicator
Secondly, the companies should start penetrating into second- andthird-tier cities, which have been developing fast in recent years,he said. In his view, the three concepts fundamental to supporting thegrowth of Italian companies in China are “presence, innovation andcompetitiveness.” Investing in “presence,” Castellaneta said, means strengthening therelationship with local companies and institutions and having aprofound understanding of Chinese culture, which are theprerequisites to enter that market. Then it is vital to enhance their competitiveness through betterfinancial guarantees during a phase “in which production quality isnot sufficient anymore” to survive in the Chinese market, as Chinaitself is increasingly investing in technological innovation, hesaid. “Only an approach based on active and broadmindedinternationalization can lead to success,” Castellaneta said. Auto Diagnostics Software Manufacturer
“Dimension also plays a key role,” he said, calling on the Italiansmall- and medium-sized enterprises to join forces and adopt asystematic approach, so as to be qualified as main actors on theChinese market. Castellaneta said that SACE, whose insured transactions reachapproximately 72 billion euros (90 billion U.S. dollars), hascontinued to play a strong role in supporting theinternationalization of businesses in the current difficulteconomic climate. However, the group’s insured transactions in China presently amountto only two billion out of the 72 billion euros, he said.
Therefore, one of Castellaneta’s main objectives is to furthersupport growth by cooperating with Chinese financial actors, whileencouraging Italian companies to show their “creative spirit andtypical lifestyle.” Author Source xinhua Editor Yang Fan.