China represents a huge opportunity to export goods in addition to export services and products & solutions. Despite attention about USA organizations exporting jobs to China and the China-USA trade shortage, USA businesses’ exports of goods & services to China is thriving. On the previous ten years, USA exports to China have shrunk to approximately $50 billion – which was 5 times faster compared to exports into the rest of the world.
Small and mid size organizations how to manufacture a product in china are prospering by exporting to China. The number of little and mid size exporters to 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 Broad Market Range!
In addition to well researched growth of Agri Business, Construction, and Energy exports into China, significant market opportunities exist for both USA companies to export into China’s Industrial, Medical, Telecommunications, Machine Tools, Environmental, Infrastructure, Security and Recreation Markets – only to list some of their best export market prospects. China and Hong Kong is currently america’s third biggest export partner – supporting only Canada and Mexico.
China is encouraging even increased business venture with USA businesses. Back in 2006, China’s President Hu Jintao ordered for 200 Chinese executives to pay a visit to the USA on a purchasing excursion. Moreover, most USA countries have trade offices that cultivate trade with China.
Manufacturing in China – Enormous Potential to become Globally Competitive!
China is still the world’s destination for foreign exchange. USA business investment alone is over $3 billion annually, which positions as China’s third biggest investor. Along with the Chinese government service for USA companies considering expanding into China, there’s an emergence of Chinese firms to facilitate USA Company’s successful entry into China.
For USA companies, taking advantage of China’s competitive labour economy, investment incentives, and expanding local markets may be dramatic – notably using uncertain local market states.
Significant improvements in bottomline profitability in addition to return on investment are realistic opportunities. Perhaps the most important basis for establishing a Chinese manufacturing presence will be usually to be near clients that already are located in China.
Near Customers – Improve Service to Clients located China!
Before China’s entry to the WTO, China prevented USA organizations from dispersing their imported products or providing local repair/maintenance services inside China. Currently, China allows USA firms to encourage both locally manufactured and imported products within China. This provides flexibility on How Best to provide logistic support to customers located in China, such as:
Chinese neighborhood Trading CompaniesJV Partnership CompaniesForeign Invested Commercial Enterprise (FICE)Wholly Owned Foreign Enterprise (WOFE)Because of this complexity of China markets and logistics peculiarities, so as to maximise service to clients in China, both small and mid-size firms gain from having a neighborhood Chinese partner for local manufacturing, importing and marketing within China.
Darrell Wilk is currently a World Wide 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 expertise in consulting China business opportunities.