Is now the time to do business in China?

Things in the US are certainly looking pretty rocky at the moment. Maybe you’ve being thinking about doing business in China. Maybe you’ve done a deal or three and are thinking about expanding your China exposure.

Is this the time to do business in China?

Fact: China is becoming more important as a market for high quality goods and services – and less so as a manufacturing site. Multinationals (MNCs) have already made their commitment, and they are struggling in Shanghai and Beijing with the same issue that give them trouble in NY and LA:

HR. Financial services. Marketing. Sales. Recruiters. Management consulting. Training. Design. Quality control. Customer service.

Local Chinese managers have done great in the big international companies, but local Chinese private businesses haven’t been able to keep pace with the demands of 21st century business needs.

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The top 10 reasons to consider China business entry.

Pros of entering or expanding your exposure to China now.

1. It’s now possible to enter China incrementally and predictably.

2. China has laws and orderly business processes now.

3. Fortune 500 can’t be consistently wrong about everything all the time.

4. Companies you may already have a relationship with are looking for outsourcing and supplier relationships.

5. The relative shift in fortunes may be a long-term trend. Your main markets may be in a permanent shift.

6. You may suddenly find yourself with excess capacity…and time.

7. The conservative estimate of the size of the Chinese middle class is 250 million.

8. You may not have any choice if your clients are moving.

9. Your competitors are already there.

10. It sure ain’t getting’ any cheaper.

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The top 10 reasons to fear entering or expanding in China.

1. China could be correcting as well.

2. Long term trends could be less favorable.

3. Things are MUCH more expensive than just a few years ago.

4. Shanghai is boring unless you are working, eating or drinking. (That one could have actually gone either way.)

5. Chinese laws still fearsome and arbitrary.

6. No on knows what Chinese consumers want. Including them.

7. English and international business skills still dismal outside big cities.

8. Far away.

9. Hard to grow your business.

10. Marketing and selling here is more difficult than ever.