With a GDP of US$13.4 trillion (S$18.3 trillion), China is Asia’s largest economy and the world’s second largest economy. China has a population approaching 1.4 billion and a booming upper middle class, representing abundant opportunities for business. Singapore companies can capture these opportunities by having a unique value proposition and a clear market entry strategy in China’s highly competitive market.
Technology and innovation are key drivers of China’s economy. With 202 unicorns, China is viewed as the second most promising market in the world for technology breakthroughs. In 2018, venture capital investment in China amounted to US$70.5 billion (S$96 billion) in total, with 813 deals. China’s startup hubs are located in highly connected megacity clusters; for instance, Beijing is located in the Bohai Economic Rim, while Shanghai is located in the Yangtze River Delta. Singapore companies can look forward to opportunities for test-bedding, funding, and business expansion in the market.
Shanghai is China’s largest city in terms of GDP, with 2018 figures hitting RMB 3.2 trillion (S$617 billion), and is also home to the largest number of MNC regional headquarters in China. A cosmopolitan city and financial centre, Shanghai ranked 8th among global startup ecosystems in the Global Startup Ecosystem Report 2019 and is among the top three of China's most innovative cities. Shanghai was selected to host the inaugural China International Import Expo (CIIE). Shanghai was Singapore’s second largest investment destination in China in 2018, while Singapore was Shanghai’s third largest foreign investor. Development zones in Shanghai include Zhangjiang Hi-Tech Park and Caohejing Hi-Tech Park. Shanghai is located in the Yangtze River Delta region, which accounts for 3.7% of China’s land area with a population of 220 million and approximately a quarter of China’s GDP.
XNode is Enterprise Singapore’s Global Innovation Alliance (GIA) partner for China. It is a Shanghai-based startup and corporate accelerator that works with international founders to scale and with large corporates to innovate. XNode has partnered with the Australian, Japanese, Korean, and Italian governments to accelerate startups within the Chinese ecosystem through their facilities in Shanghai, where over US$150 million (S$204 million) in funding has been raised. They have connected startups to their network of corporates including Merck and Visa, via over 60 corporate acceleration projects.
XNode runs two co-working spaces in Shanghai (Jing’an and Zhangjiang) and has offices in Tokyo, Eindhoven and Singapore.
For more information on XNode and its programmes, please visit www.thexnode.com.
XNode is partnering Enterprise Singapore to run a GIA Acceleration Programme that will (i) support Singapore startups in accessing China through Shanghai; and (ii) Chinese startups in scaling up in Asia through Singapore as a springboard.
The China-Singapore Innovation Launchpad Acceleration Programme is designed to help Singapore technology startups and SMEs set up, test-bed and commercialise their solutions, or co-innovate with partners in Shanghai through a series of highly customised programmes and activities that will grant them access to the Chinese market, including potential investors, partners, customers and talent resources.
Singapore-based startups or SMEs keen to venture into China can apply for the China-Singapore Innovation Launchpad Acceleration Programme. Applications for the inaugural cohort closed on 30 September 2019. Please look out for information on the next cohort here in Q1 2019.
Interested applicants can contact either one of the key personnel below for more information on the programme:
XNode can also provide tailored support for Singapore corporates, SMEs and startups interested in engaging the Chinese ecosystem. Please reach out directly to the same Xnode personnel above to enquire about their tailored service offerings.
Home to prestigious universities Peking University and Tsinghua University, Beijing attracts top talents from across the country. In 2018, Beijing’s GDP grew 6.6% year-on-year to reach RMB 3 trillion (S$578 billion). It is driven mainly by its services sector, which accounted for about 80% of its GDP. Zhongguancun, an innovation hotspot located in Haidian District of Beijing, congregates over 9,000 tech firms and 10 artificial intelligence (AI) labs. The world’s first AI-focused park was opened in Beijing by Chinese search engine giant Baidu. 40% of China’s unicorns come from Beijing, and the city presents opportunities in AI, big data and analytics, and fintech. The Jing-Jin-Ji region (Beijing-Tianjin-Hebei) is also a significant growth cluster for the electronics, technology, logistics, real estate and healthcare sectors.
Contact Karen Liu (email@example.com) to connect with our GIA partners in Beijing.
Suzhou was ranked among the top 10 cities in China for intellectual capital and innovation in 2018. Suzhou’s GDP reached US$271 billion (S$369 billion) in 2018, which is the seventh highest among cities in China. Suzhou has eight national-level development zones, including the China-Singapore Suzhou Industrial Park (SIP). Started in 1994, SIP was the first government-to-government project between Singapore and China. The Suzhou Industrial Park hosts over 300 nanotechnology companies and a biomedicine cluster called SIP BioBay. SIP also partners with 70 domestic and international venture capital companies, as well as 40 life science parks, government agencies and research institutes.
Contact Karen Liu (firstname.lastname@example.org) to connect with our GIA partners in Suzhou.