Winter Olympics to broaden China's economy growth pattern, improve Sino-Austria trade

Martin Glatz, head of Advantage Austria Beijing and commercial counselor at the Austrian embassy. [Photo provided to chinadaily.com.cn]

What's the purpose of holding the Austrian Ski Race in China?

We are all keen skiers. When we started eight years ago, Beijing had even not applied to hold the Winter Olympics. So it was very early. But of course we also knew we have a lot to offer. We already knew then that one day winter sports will be big.

When I took over the office a few years ago, I transformed it into an industrial platform. Because we heard such a lot of interest from Chinese professionals and experts who want to develop skiing in China. So at last we developed it into a platform where Austrian companies could network with Chinese professionals. Actually, now we have more Chinese participants than Austrians, which is fantastic. It has become a platform where the best expertise meets the key interest of China.

Could you give some comment on Austrian winter sports companies' performance in China's market?

The last year has been very good, whether for ski lift or access systems. Where there is skiing, there are ski boots. The boom in the winter sports industry, of course, has also had its very positive effects on Austrian companies. At the same time, of course, the market becomes more competitive. There are other companies now competing for their share. But the market is growing, so I think there is room for everybody. And there will be a lot of room for our companies.

Of course the Chinese market is not an easy market because of the language barrier. It certainly requires some dedication. Our companies are showing this dedication. They are not just here for a few years, they have been here for many years.

How do you think the Beijing 2022 Winter Olympics will influence China's winter sports industry? What do you think of China's latest plan for developing winter sports? The plan says that by 2025, 300 million people are expected to participate in winter sports.

This number 300 million is of course very high and ambitious. I think it is the trend rather than the absolute number that is exciting. But I think it is good to show that sports have a value, too, for everybody, it is not only for athletes. So it is a good initiative.

What could China learn from Austria in developing winter sports market?

In Austria, not only the hotels, but the locals are also brought into the business. I think it should also work in China. Let the population participate economically.

How do you view China's rapid economic growth and its current slowdown? Do you think it will influence Austrian companies' passion for the Chinese market?

Not at all, because, of course, development growth has slowed down but also growth is driven now for example by the consumer sector. This is also what winter sports is about, it is about the consumer. So on the contrary, I think it is not the slowing of growth but the change of the growth pattern matters. And this is actually encouraging more activities in areas like lifestyle, winter sports.

Do you think the China-proposed Belt and Road Initiative will help Austrian companies grow better and bring them more opportunities?

Absolutely. I organized only a few weeks ago a trade mission called the Silk Road Exploration. So I offered a dozen of Austrian companies the possibility to actually travel along the Silk Road. We started in Beijing, went to Xi'an, from Xi'an to Urumqi to Khorgos, and to Almaty. It was very successful that many of them signed a contract. So it does help because Austria has its perspective, especially in central-eastern Europe, which is part of the Belt and Road Initiative. We are very interested in cooperating with Chinese companies in developing in those countries' markets.

This is actually a part of globalization. It is one of the globalization drivers. I hear from Austrian companies that a lot of businesses now are actually being developed with Chinese companies in countries outside China. A country like Austria depends on a open market, so we are doing our best to keep markets open and we also encourage our Chinese friends to work with us.

How do you view Chinese President Xi Jinping's speech at the World Economic Forum in Davos?

I think his speech is very encouraging. I think it has been demonstrated that globalization is not running itself and we have to work towards that. It is like a ski race, you have to ski very well and navigate the course. It's the same with globalization. Try to get through the gate, make it to the finish line and try to be as fast as possible.

What is your expectation on China and Austria's cooperation on trade in the future?

What is changing the structure is the consumer is getting important. We attracted new Austrian companies to the Chinese market offering much more services than a few years ago. We also see an increasing number of Chinese companies looking at Austria as an investment destination. So of course China, being such a market, is always full of potential. We do our best to develop the trade in all sectors.

How should Austrian companies adjust themselves to China's "new normal"?

It is not easy to restructure the economy, especially to restructure the State-owned enterprises. China's "new normal" certainly will affect Austrian companies because some of them have been dealing with companies that were much more important maybe 10 years ago. Now this is changing. There are other companies coming up. Doing business in China has always been challenging

It is a great market. I tell Austrian companies they should come, even if they are not here all the time. Through investment they have to come again and again, because China is changing so quickly. It is a very dynamic market. One has to be here and watch new trends. And as I said before, it requires dedication.