Page 41 - ABFI March 19 issue

couNtry focus

signs that such efforts are innovation. In particular,
paying off, according to many small and medium
Yi Xiaoguang, director of enterprises faced challenges
the Chongqing Institute of in obtaining bank loans, he
Comprehensive Economic noted.
Research, who points to a A slate of supportive
quadrupled increase in the policies were rolled out
contribution of high-tech following last year's "two
industries to Chongqing's sessions" that called for
industrial output in 2018. reducing taxes and other
"It shows the new growth burdens for enterprises.
engines are gaining steam, China is estimated to have
and in due course, will rise saved 1.3 trillion yuan for
to become the new economic market entities in 2018.
pillars," Yi said. Tseng, Kingtronics chairman,
Jinchai. "Young Chinese today impact on our company. As believes such policies are
Market Confidence consume packaged snacks long as we have innovative essential for China's real
Other good news for mainly to feel good and stay products, there will always be economy to prosper.
China's economy will come healthy." market demand," said Deng, "Pushing for innovation
from the unified foreign Cai said the consumers' whose company just inked a in the manufacturing sector
investment law, which hunt for premium foods 200-million-dollar supply deal always involves a lot of risks.
will be discussed during is driving the company with a Mexican oil firm. Small firms, in particular,
the "two sessions." Once to diversify its products, Deng hoped that the have to overcome many
adopted, it will help foster come up with new tastes, upcoming "two sessions" financial and technological
a more favourable business and team up with Japanese would focus on the financial hurdles, so they need strong
environment and attract more experts to develop "short woes of private companies government support," Tseng
foreign investment. shelf-life" snacks welcomed as they work on reform and said.
The domestic market by health-savvy shoppers.
is expanding and remains It is also foraying into the
strong. In 2018, China's goods profitable market of assorted
consumption gained 9 percent nuts, hailed by white-collar
to 38 trillion yuan (5.66 trillion consumers as a "brain food."
U. S. dollars), continuing to According to a report
serve as the biggest growth by Bain & Company and
driver, according to the Kantar Worldpanel, Chinese
National Bureau of Statistics. households' spending on Fast-
Furthermore, the Moving Consumer Goods
infrastructure boom along the (FMCG), or non-durable
Belt and Road in recent years goods such as packaged
has brought many emerging foods, is expected to rise 5
markets closer to domestic percent in 2018, showing
producers as they seek to that the trade tensions had a
offset uncertainties in Western minimal impact on China's
markets. consumer market.
Panpan Foods, a major The industrial market
supplier of packaged pastries also bodes well for Chinese
and puffed food in Fujian, manufacturers that climb
testifies to the consumption up the innovation ladder,
upgrade in China driven by said Deng Xiaojun, assistant
the rising purchasing power. to the chairman of Datong
"In the past, Chinese Reciprocity Group, a Fujian-
consumers favoured larger- based manufacturer of
sized pastries sold at lower industrial valves that is
prices, but now people don't breaking into the global
mind spending more on market of cryogenic valves.
food with better taste and "The economic slowdown
quality," said Panpan CEO Cai in recent years had a minimal

AgriBusiness & Food i ndustr y March 2019 41