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China Business in China

Posted by Eddie Tobey | Business & Trade | Tuesday 29 July 2008 2:58 am

First of all, it is meaningless to duplicate strategies however successful they are in Europe. Secondly, the sheer number of US firms eyeing to import/export from China is another source of a problem: too many of them adapting the same strategy and chasing the same few companies for import & export alliance. But remember, not many large Chinese home grown companies were in the driving seat of its massive growth in recent years. This exposes the shortcomings of Chinese import/export companies and their competence to handle large volumes of global sourcing orders. This must serve as a wake up call to all China business seekers and give them a few points to ponder about.

Foreign investors are pouring in capital in developing China business in the face of the burgeoning economy. It is mysterious that multi-nationals are pursuing theoretical approaches to import and export from China business investment. Success in China can be possible by steering away from unsuitable models in particularly advantageous areas. First of all, quite a few China business entrants, tired of global sourcing, bought out local players in the niche market which gave them established infrastructures. Others went ahead with long term import/export contracts, in place of global sourcing; befitting that China is world’s factory.

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