Business Opportunities in China
China represents a enormous possibility to export goods as well as export services and products & services. Despite attention about USA companies exporting jobs to China and the China-USA trade shortage, USA organizations’ exports of products and services to China is thriving. On the previous 10 decades, USA exports into China have shrunk to approximately $50 billion – which was five times faster than exports into the rest of earth.
This growth of exports into China is not just coming from large USA firms, such as Motorola, GE, DuPont, United Technologies, etc.. Small and mid-size companies are prospering by imitating China. The number of both little and midsize exporters into China has increased from 3,100 from 1992 to over 20,000 companies in a wide assortment of market segments.
Attractive Markets – China Business Opportunities Span B Road Market Range!
In addition to well promoted growth of Agribusiness, Construction, and Energy exports into China, significant market opportunities exist for USA companies to export to China’s Industrial, Medical, Telecommunications, Machine Tools, Environmental, Infrastructure, Security and Recreation Markets – only to name some of their best export market prospects. China and Hong Kong is now america’s third biggest export partner – supporting only Canada and Mexico.
China is encouraging even greater business partnership with USA companies. Back in 2006, China’s President Hu Jintao arranged for 200 Chinese executives to pay a visit to the united states on a purchasing tour. Moreover, most USA states have commerce offices which cultivate trade with China.
China continues to be the world’s how to manufacture a product in china destination for foreign exchange. U S A business investment alone is over $3 billion yearly, which ranks as China’s third largest investor. Along with this Chinese government service for USA organizations thinking about expanding into China, there is an emergence of Chinese firms to facilitate USA Company’s successful entrance into China.
For USA businesses, taking advantage of China’s competitive labor market, investment incentives, and expanding local markets may be striking – notably with all uncertain community market conditions.
Significant improvements in bottom line profitability in addition to yield on investment are both realistic chances. Perhaps the most significant motive for establishing a Chinese manufacturing presence is to be near clients that already are located in China.
Close to Customers – Improve Service to Clients located China!
Before China’s entrance into the WTO, China prevented USA businesses from dispersing their imported products or providing local repair/maintenance services in China. Now, China lets USA firms to encourage both locally manufactured and imported products within China. This provides flexibility on how to provide logistic assistance to customers situated in China, for example:
Chinese neighborhood Trading CompaniesJV Partnership CompaniesForeign Invested Commercial Enterprise (FICE)Wholly Owned Foreign Enterprise (WOFE)Due to the complexity of China markets and logistics peculiarities, to be able to maximize service to customers in China, both small and midsize companies gain from using a community Chinese partner to local manufacturing, importing and marketing within China.
Darrell Wilk is currently a Global Business Consultant and Instructor at Concordia University in St. Paul, Minnesota and Argosy University at Eagan, Minnesota focused on Marketing, Strategic Planning, and Global Business Development. Darrell has extensive experience in consulting China business chances. Furthermore, he instructs Executive Revenue Management in the University of Wisconsin, Madison Executive Education.