Britain has to realise it's no longer the power it used to be, says WPP chief Martin Sorrell Headcount for the Greater China region (including Taiwan and Hong Kong) has been ramped up to more than 14,000. Another 1,500 new hires are planned for this year. Sir Martin travels to China roughly eight times a year, sometimes staying for more than a week, sits on the board put together by the mayor of Shanghai and is a regular attendee at numerous business events, including the Summer session of the World Economic Forum, where I am speaking to him. Last year, WPP's head of Global Strategy for the group was based in Shanghai. "The most important thing for us is to develop relationships here that will enable us to expand our business," Sir Martin says. Later that day he will meet Chinese premier, Wen Jiabao, in Tianjin, along with other international business leaders. "He's definitely not one of these fly-in-fly-out executives," says one Ogilvy manager who has been in China for more than 15 years and works closely with him. So far, Sir Martin's determination has paid off. Clients include big international brands wanting to appeal to the local consumer as well as Chinese companies in search of a global audience, such as computer maker Lenovo. Some of the key successes for the company include prized campaigns for Coca-Cola and Samsonite. Ogilvy is now, for instance, tapping the country's huge municipalities that are all eager to attract foreign investment and tourists. The firm has been working with Chengdu for two years and hopes to sign up more cities this year. WPP was a major presence in the country for both the 2008 Olympics held in Beijing and the Shanghai Expo held two years later. Though individual billings aren't disclosed, industry executives say clients don't hesitate to spend hundreds of thousands of dollars in China, with that figure easily reaching $1m for any "serious marketing work." WPP's main foreign competitors also won't comment on their regional figures, but Sir Martin estimates he has a 15pc market share and is "four to five times bigger" than his closest rival. "I think it's going to be very difficult for our foreign competition to catch up with us," Sir Martin says, certain that his headstart will keep WPP in the lead in the years to come as both international and local players rush into what has become an increasingly profitable industry. IPG, a marketing and communications company, estimates that China's advertising market grew by more than 20pc in 2011 to $28.1bn (£17.3bn) and has become the world's second largest. And, unlike other industries where local companies have progressively outgrown international players, Sir Martin views local competition more as acquisition targets than serious rivals. Revenues for WPP in China reached $1.1bn last year and should increase by another 15pc or so this year to $1.3bn. He estimates that the number two player trails behind with revenues of $280m. "We grow double GDP rate every year," he says. China is underbranded, undermarketed. There is still huge room for growth. He says that currently all sections of his business are profitable in China and that there is a particular emphasis on consumer goods. Sir Martin says he has his eyes particularly focused on China's mobile phone population, the largest in the world. The country holds more than 950m mobile subscribers. Online ads remain a tiny part of our business, but the potential is huge. And, despite increasing signs that the Chinese economy is stalling, Sir Martin's optimism shows no sign of faltering. GDP growth has been falling in the country for six consecutive quarters and the much-awaited rebound has failed to materialise, raising fears among economists that the slowdown could be permanent. The GDP is not flat on its back. We have not seen a slowdown in our figures. The next five-year plan is about consumption, healthcare and social security. It's therefore logical that we see consumption of mass goods increase. He insists that a hard landing for the world's second-largest economy is yesterday's fear and that, although economists and academics are lining up to review down their growth forecasts, this is not a time for pessimism. Sir Martin is betting that the Chinese consumer will keep spending - retail sales are still up 12pc - and that brands, especially Chinese ones, will be more willing to pay that extra bit to add premium to their name. "Chinese companies are coming to understand the value of branding and building loyalty," he argues. One reason Sir Martin could have for being such an adamant China optimist, is that he does not want to upset local authorities known to be particularly hostile to outside criticism. Another might well be that, elsewhere in the global economy, things are not looking so good. WPP has just revised down its full-year 2012 forecast for the whole company. Though Sir Martin has always said this year would be tough for the firm, it is facing increasing headwinds from the neverending eurozone crisis and lower-than-expected US billings. The company plans for 3.5pc growth in revenue, down from 4pc in 2011. Given the global situation, Sir Martin seems keener than ever to shift his focus to the East and developing economies. Roughly 12.5pc of WPP's revenues are generated from the BRICs alone (Brazil, Russia, India and China), but Sir Martin hopes to increase that number to 30pc to 40pc as soon as possible. The Chinese market will soon overtake Germany in the company's portfolio and could well surpass that of the UK, Sir Martin says. Currently, one third of revenues come from Europe, another third from the US and the remainder from BRIC and developing countries. "I do see stagnation settling in Western Europe," he admits. The general view for IBC members [a select group of CEOs] is that Europe is in for a long, slow recovery. It will take another four to five years, which will lead to an unwillingness to invest to increase capacity. He warns that Western European businesses could easily become the prey of private-equity firms on the prowl for cheap assets. When asked whether he had factored in an eventual break-up of the eurozone, he replies that WPP is of course hedging risks, but that currency exposure generally remains limited. "The euro is weaker, so we have been taking action every day, but beyond that, our revenues and costs are matched in each currency in each country we operate in," he says. Looking forward, he says business prospects for 2013 do not look much more promising, with the biggest overhang being not Europe but the US deficit. "I think 2013 will be more challenging than 2012, simply because we don't have the events," he says. We don't have the US elections, we don't have UEFA [football] championships, we don't have the Olympics. However, in 2014 we have Sochi Winter Olympics. We have the Brazilian World Cup and US mid-term elections. The pattern will be better. The only bright spot in the West remains the UK, with revenues proving surprisingly resilient. WPP continued to grow 3.5pc in the second quarter. "The UK was almost an emerging market for us," Sir Martin says. We continue to fly in the face of GDP statistics and, if you ask me why, I continue to say that clients are not investing in capacity because of the risks, but they are willing to put money behind brands. Sir Martin acquired two small bankrupt firms this year and says there could be more acquisitions along the way, though growth will remain mostly organic. He says the planned move from Dublin back to London will boost the firm both psychologically and financially. I think we are all set. I am very positive about our business here," he says. Sir Martin Sorrell CV Education Haberdashers" Aske's Boys" School; Christ's College, Cambridge; Harvard Family Married to Cristiana; three grown-up sons from first marriage Career Saatchi & Saatchi 1975-1985, First investment in Wire and Plastic Products (WPP) 1985, Chief executive, WPP 1986 onwards WPP facts Reported billings as at December 2011. It equated to £10bn of reported revenues Number of WPP offices around the world. The conglomerate employs 162,000 people, including associates The total compensation package handed to Sir Martin for 2011, up from £8.26m the prior year. The size of the package led almost 60pc of investors to vote against the company's pay report at its annual meeting in June Number of countries in which WPP operates