China’s Technology Revolution – the appetite to invest and secure technologies, developed and proven outside China, that can be scaled up into world-class businesses in China knows no bounds.
With an entrepreneurial spirit and steel determination to succeed in the shortest possible time, coupled with unmet demand in the Chinese market, China’s entrepreneur’s and businesses are searching for the latest innovations and technologies to meet this demand. Also feeding this appetite to secure and bring back into China, international technologies, is China’s foreign currency restrictions, which are limiting the ability to make acquisitions overseas.
Further driving the demand for international technologies is China’s environmental policy. For example, China’s Government is looking to reduce construction site waste and dust. This is opening opportunities for Australian prefabricated building systems and technology.
Triangle Equity Partners Pty Ltd (TEP) is in initial discussions with three Australian companies to fulfil this demand in China, but is also searching for other prefabrication building systems technologies.
This search for the latest innovations and technologies is not confined to one industry or sector, it is as broad and long as the Yangtze, covering Medtech, Infotech, Foodtech, Envirotech, and Edtech, just to name a few.
China is globally the largest education and Edtech market. According to education market intelligence company, HolonIQ, China out-invested the US in Edtech by 3:1, in the first 7 months to 1 August 2018 (China US$2.4 billion/US only US$800 million); investing as much in July alone as the US did in the first six months of 2018. TEP is presently finalising China ‘bookends’ in the Edtech sector which will create immense opportunities for Australian Edtech companies.
Chinese airlines transported around 550 million passengers in 2017, and Boeing has forecast China will need 7,690 new airplanes over the next 20 years. In this sector of high-growth, TEP has demand from premier aviation and aerospace groups in China to secure technologies. Opportune for the right Australian companies looking to grow into this massive market.
Although China is soon to be the country with the largest R&D spend by 2019, “Create in China” and the gaps to make this happen can only be initially filled with acquiring and investing in international innovations and technologies.
This situation provides a huge opportunity for private and institutional investors to capitalise on China’s demand for innovations and technologies, and TEP has innovated a unique venture funding and transactional structure that enables investors to participate in this huge demand in China.
