The Asia Pacific region cannot be defined in simplistic terms, it is however undoubtedly an economic and manufacturing hub. It has witnessed immense economic growth in the past decades and continues to be an alluring prospect for European companies seeing new avenues to expand their business.
A highly populated and growing market
The Asia Pacific region is home to 4.3bn people – representing 60%(!) of the world’s population. The region has undergone a rapid growth in their middle class, bringing the increased purchasing power that comes with this growth. This spending power is not limited only to high-income economies such as Japan or South Korea, but smaller growing economies such as Bangladesh, Myanmar and Vietnam are also continuously reporting impressive GDP growth.
A technophile population
Technology is an integral part of life in the Asia-Pacific region. Japan and South Korea are renowned for their technological innovation and widespread use of modern technologies. The South East Asian region, one that continues to grow in prominence, is the fastest growing internet market in the world with 125,000 new internet users every single day. In China, nearly two-thirds of the population uses a mobile phone and more than a third make purchases using Wechat Pay or Alipay, the country’s leading payment platforms.
The world’s largest 5G Network
Technological development relies on a robust digital infrastructure. Connections must be fast, stable and high quality. Whilst Europe is a leader in 5G development, it is not leading in deployment. If trends continue, 5G will account for only 35% of network use in Europe by 2026. Without sufficient connectivity, bandwidth-hungry technologies such as the Internet of Things (IoT) cannot reach their full potential. China has 916,000 5G stations spread throughout the country, representing 70% of stations deployed globally. This helps to drive innovation in local industries that benefit from this advanced digital infrastructure. Other countries in the region are not far behind, South Korea has deployed an advanced 5G network that targets to support 60% of mobile communications by 2025.
Increasingly diversified economies
The Asia-Pacific region is a diverse range of economic structures and key competencies. China has been known for decades as a manufacturing hub, whilst other economies such as Singapore have focused on a service-based economic model. With such a diverse range of economies in the region, it is not surprising that foreign businesses sees the region as an immense opportunity. Smart technologies, process automation and new emerging technologies are increasing efficiency and productivity, as well as helping to optimise safety regulations.
A need for foreign knowledge
Despite the economic growth witnessed in the region, many countries admit there are still many shortcomings. According to a 2017 study in China, more than a third of respondents reported a lack of qualifications and skills. For European companies, it is an opportunity to bring their own expertise to position themselves in the market. The scale of trade between Europe and the China-APAC region is significant, with €586bn of trade occurring between Europe and China alone.
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About China Telecom (Europe) Ltd.
China Telecom (Europe) is your digital silk road between Europe and China-APAC markets. We are a strong APAC region partner for your digital transformation initiatives wherever, whenever you need telecommunication infrastructure and technology services.