The Real Deal by Dr. James Duan
Business Insights Beyond the News
March 18, 2019
Vol. 1, Issue 10
The investment landscape in China continues to get better. With the passage last week of the foreign investment law, China is opening up its doors even wider to foreign investors. Opening-up brings progress the people. And China’s development cannot be completed in a vacuum. China needs the rest of the world, just as the world needs China.
The National People’s Congress voted overwhelming on March 15 to improve the transparency of foreign investment policies and ensure that foreign and national enterprises participate in the capital market on an equal basis.
The time is now or foreign investors to get serious about investing in Chinese companies. As president of Ward Holdings China, a U.S.-based Ward Holdings investment firm with a focus on China, I am encouraged by the passage of this new law.
China is the second largest economy in the world, with a population of nearly 1.4 billion. In China more than 18,000 new businesses are born every day.
We at Ward Holdings have been examining Chinese businesses, looking for investment opportunities for foreign investors. For the past two months, I have been performing due diligence on a company called The Dingsen Group and its revolutionary clean-energy cooking product, Snow Carbon. After examining its financials, conducting due diligence and meeting extensively with the company’s founder and its business consultants, I am convinced, as are my U.S. colleagues, we have a unicorn-like company on our hands.
Regarding Snow Carbon. The Dingsen Group is a fast-growing producer of a patent-protected pollution-free grilling briquette to be used by the popular BBQ and hotpot restaurant industry. The government banned the production of traditional charcoal in 2017 and soon the supply will be exhausted. Restaurants must replace the old product, and Snow Carbon is the likely, most attractive replacement.
In order to expand and take advantage of the disruption in the China charcoal industry, The Dingsen Group needs investment capital and Ward Holdings International is putting together the best investor contingent to take advantage of this unicorn-like company.
I am confident there are other such unicorns in China waiting for investment capital to leap into the future. And the new law provides the springboard.
This is good news for foreign investors. And I encourage anyone interested in China to take a closer look. Companies like The Dingsen Group offer real opportunity for wealth creation.
[Dr. James Duan is President, Ward Holdings China, and Partner of Ward Holdings International. He earned his PhD in Consumer Behavior from the University of South Australia, a Masters Degree in Marketing from the University of International Business & Economics (Beijing) in and a Bachelor’s Degree in Transport Engineering from Southwest Jiaotong University (Chengdu). He has extensive executive business experience in and outside of China.]