China has plenty of scope for sustainable growth IBUonline is a B2B foreign trade platform which offers comprehensive

foreign trade services to China suppliers and international buyers. IBU will deliver reports on China foreign trade and e-business status. China has plenty of scope for sustainable growth from its coastlines and inland and may well leverage comparative advantages across different regions and cities. According to Tim Lyons, general manager of Manage China, an Australian-invested business process outsourcing firm, Chinas edge is through clear government direction, outlining key industries to ensure people continue investing. It is no longer a black-and-white situation where foreign companies prefer the market access or the cost advantage, he says. It is more of an overlap of labor, high technology as well as owning brands. Chinas supply chain has grown rather sophisticated and, even if some firms move out, they choose to maintain a relationship that may prove valuable and useful in the future. But experts say the Chinese government still has a way to go to convince companies that they can move inland in China rather than leaving the country. It is still problematic because many inland cities are not perceived as pro-business, because of lack of regulation and higher logistic costs, says Pedro Videla, professor of economics at IESE, the graduate business school of the University of Navarra in Barcelona. Another thing the government can do is to clear investment hurdles by lowering thresholds in industries such as telecoms and finance, which are held by domestic monopolies. The gloomy outlook for the world economy makes China the single most important emerging market for European small and middle-sized enterprises. IBUonline is still positive on foreign trade business future