China - background market data

Population — 1.36 billion and climbing. It is expected to reach 1.5 billion by 2040. Languages, Mandarin and Cantonese mostly, but many regional.

Government — A communist state. Head of state president Hu Jintao since March 2003.

Economy — Towards the end of the 1970s the Chinese leadership began moving its country’s economy from an inefficient Soviet-style centrally planned economy to a more market-oriented system. And slowly but surely the economy is being opened up to foreign trade and investment. It is now less command economy than semi-capitalist juggernaut. The result has been a quadrupling of GDP since 1978. During 2004 China’s GDP grew by a colossal 9.5 per cent and this year it is expect to do a similar 9.0 per cent plus.

Currency — China Yuan Renminbi (RMB): E1=RMB9.9978, UK£1=RMB14.3881 and US$1=RMB8.105. For years the currency has been pegged against the US dollar, but in mid-July 2005 it was finally revalued and allowed to increase by 2.0 per cent, all owing to increasing pressure from Europe and particularly the US. However, such a small shift is unlikely to reduce the flood of low price goods ‘Made in China’.

Boating Geography — The world’s fourth-largest country after Russia, Canada and the US, China’s fairly fragmented coastline extends 14,500km from its border with Vietnam in the southwest up to North Korea and Russia to the northeast. It takes in the Yellow, East China and South China Seas. And there are also hundreds of thousands of kilometres of rivers, lakes and reservoirs. The total land mass that is China covers some 9.6 million km2 and the area of water under Chinese control adds up to 270,000km2.

In all there are 23 Chinese provinces, the 23rd of which is considered to be Taiwean, five autonomous regions and four municipalities. Plus there are the Special Administrative Regions or ‘SARs’ of Hong Kong and Macau, which still maintain border crossings and require visas, for Chinese nationals going into Hong Kong and for Hong Kong residents to travel into China. Hong Kong and the gambling enclave that is Macau are viewed as playgrounds.

Its climate is extremely diverse — tropical to the south and sub-Arctic to the far north. In summer the coastal areas are very hot and humid.

Restrictions — Virtually no marinas. Considerable bureaucracy. Registration. The buyer of an imported boat would pay 17 per cent tax and 10 per cent duty.

Boat Park — Virtually zero.

Key Boat Shows (1) - China International Boat Show in Shanghai. Held annually in early April. Normally attracts 230 exhibitors and 16,000-plus visitors.

Market Outlook — As regards domestic marine leisure activity, China probably has a very long way to go before there is any serious business to be had. Most informed opinion estimates that it will take three-five years before any serious activity begins and some less optimistic suggest it may take a lot longer than that for the Chinese to associate leisure with boats. For that to happen not only must the country develop an infrastructure from scratch, but also cultures must change.

What is changing and changing fast, however, is marine equipment manufacturing and boatbuilding activity. There are now scores of Chinese companies producing all sorts of marine leisure products — from marine hardware to clothing — and probably as many companies building boats — motorcruisers and motoryachts mostly, but also some sailing yachts. With labour rates in China at least a tenth of what they would be in Europe and the US, and the quality issues improving all the time, we can only expect to see such activity increase.

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