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Country Comercial Guide: China (Country Commercial Guides)
Publisher: Intl Law & Taxation Pub
Publication Date: 2001-04
Number of pages: 148
1. Many of the stunning contradictions in China have been nurtured by the unprecedented changes of the past twenty years. Since the beginning of the policy of "reform and opening-up" in 1979, China’s economy has grown more than tenfold. Previously rationed goods such as bicycles, textiles and grains are now in over-supply. Foreign invested firms, practically non-existent in the 1970s, now number over 300,000 and account for almost 50% of China’s exports. Foreign trade has grown from $38 billion in 1980 to over $361 billion in 1999. Although most Chinese firms remain relatively small, under-capitalized and poorly managed, there are pockets of excellence in Chinese industry. Chinese firms have competed successfully with world leaders in the white goods and home electronics markets. Chinese PC manufacturers have won back market share from such firms as Compaq and IBM.
China is a market with vast potential. The trick is realizing that potential. China’s pending accession to the World Trade Organization (WTO) will make it easier for U.S. firms to do this, but it is false to believe that WTO entry provides an end-all solution. Do your due diligence – twice. Opportunities are available in China, but companies must pay heed to the many obstacles. This report can help identify both.