Gancrete Production Facility in Morehead City, NC
Top 10 Findings: Creating a Winning Business in China
Published in the News & Observer
http://www.newsobserver.com/2011/09/18/1494316/china-challenges-western-entrepreneurs.html
Sam Jia, international corporate counsel for Market America, a product brokerage and internet marketing company headquartered in Greensboro, states "for U.S. companies, especially for consumer product companies - China is very attractive." They ran across compelling research that showed a correlation between companies that had entered China successfully and those with strong financial leadership. While, even if not causal, the two factors compelled his firm to investigate.
Although China surpassed Japan as the world’s second largest economy in 2010, the country is not a panacea for slower growth in developed markets like the U.S. The Chinese Communist Party (“CCP”), after 30 years of market-driven reforms, is still grappling with how to govern the world’s most populous nation. The CCP will remain the sole ruling party for the foreseeable future so foreign companies need to understand the government’s role in the domestic economy. Since vague regulations and selective enforcement are the largest barriers to foreign investment, the most critical step for new entrants is building relationships with government authorities. Thus, smaller companies should consider hiring advisors with contacts and expertise in order to manage their interactions with government officials prior to problems arising.
James Melton, President and CEO of Grancrete, an advanced materials company based in Morrisville, shared "international markets have become more appealing due to the U.S. crisis. China offers the most growth even with the recent slowdown. We can't ignore China as it offers projects ten to one hundred times larger than anything in the U.S. This results in expansion in both our NC facilities as well as our needing to build capacity in China."
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