EU Businesses to Expand Further into Asia
The majority or businesses in Europe are still trying to cope with the impact of Brexit. The latest report suggests that European banks are planning to move more than 9,000 jobs out of Britain as a response to Brexit. Discussions regarding trade and business relationships are still in progress and stakeholders are taking extra caution with every step they make.
Despite everything, European businesses are still focused on their push to expand further into Asian markets. EU officials and private businesses alike are trying to branch out to new markets, especially growing markets like China and Japan.
A Stepping Stone
EU officials are said to be in serious talks with Asian governments about new cooperation and trade deals. Officials are also trying to reach out to New Zealand and Japan, as well as other growing markets in Asia and the Middle East.
While these talks have no significant impact on EU trade as a whole, they are great stepping stones for more cooperation in the future. Trade deals will also help European businesses expand to these markets without having to break through tough barriers in the process.
In many of these markets, the European Union already has investment pacts in place. Unfortunately, the implementation of these pacts and agreements was not as smooth and successful as hoped when they were first agreed upon. There are regulatory issues preventing EU businesses from expanding their operations.
China as the Main Target
All of these trade talks are aimed at one major goal: to help EU businesses enter the Chinese market. There has been a lot of progress over the years, but the Chinese market is still relatively closed to European – and American – businesses. The Chinese's government's protective regulations are far from ideal. There are other issues to iron out as well.
Copyright issues are still causing many European businesses to hesitate. A recent case between BMW and a local automotive company proved that copyright infringement is still an issue that cannot be handled effectively in China. The local judicial system chose to side with Chinese businesses in other similar cases, too, which leaves foreign entities with little support.
Preparing for an Expansion
Nevertheless, we're starting to see a lot of movement by EU businesses in anticipation of new trade deals. Many large corporations are starting to invest in human resources and expanding their teams to help cope with the increasing demand to come.
Specific services such as translation and media transcription services are in high demand. Marketing materials and supporting documents need to be adjusted to suit these new Asian markets better. Another interesting move by many European companies is the investment in advanced market research. Companies are taking a more cultural approach to ensure success as they branch out to new market segments.
All of these changes are positive signs that incite confidence back home. The financial market remains strong and key metrics have shown steady growth these past few months. The EU may have difficulties be dealing with Brexit, but European businesses are supporting the union by taking advantage of new opportunities around the world.