How should companies weather uncertainties in China?
Updated 21:38, 10-Jan-2019
By CGTN's Global Business
["china"]
05:42
As the Chinese economy is hazed by growth slowdown and other uncertainties, how should companies survive in a current volatile environment? 
Here are some solutions by business experts for companies doing business in China.
There is a trend, so-called "supply chain relocation," with respect to investments by foreign companies in China.
David Frey, a partner at KPMG China, explained one of the reasons behind this trend: "Some companies drop back a little bit and say 'hey there are lots of uncertainties. We don't know where China-U.S. trade talks will go. In the near term, let's hold back a little bit on investments and think about some other markets.'"
05:13
"Many foreign companies retreat, probably because China just improved the environmental protection standards, or because the labor cost goes up very quickly," Tony Dong, founder of Sino-International Entrepreneurs Federation, elaborated on other possibilities.
Dong said that among the world's top 500 companies, China still remains the top destination in terms of investments. 
"Many big companies, for example, top 500 (Fortune 500 companies), still regard China as the No.1 priority [of foreign direct investment (FDI)] and the biggest market in the world. [Thanks to] emerging middle class of China, lots of big companies still love Chinese market and continue to expand their investments," Dong added.
As to companies sticking on the Chinese market, first is to recognize the "diversity of China today," according to Frey. 
David Frey, a partner at KPMG China /CGTN Screenshot

David Frey, a partner at KPMG China /CGTN Screenshot

"We are living in a fast-growing economy… you cannot [only] see the general upward trend, we are going to have the downturn. That's the business cycle, and the consumer cycle," Frey noted.
Meanwhile, Frey stressed on the necessity of better targeting consumer behavior and advised companies to make strategies more "surrounding on micro-segmentation." 
"I think we are getting into an era where probably better targeting of consumer behavior is necessary. [Companies should make] more strategies surrounding micro-segmentation in terms of geography and looking deeper into city clusters and how they behave," Frey said.