Savvy business leaders who want to thrive and grow their companies during this economic downturn must diversify their customer bases, develop new products and/or services, and gain knowledge about world markets. While many of the world’s largest economies are shrinking or seeing very modest growth, China continues to experience rapid growth and is now the second largest economy in the world, to the United States.
When asked, why a company should enter the China market, Praveen Jolly, Vice President, Asia & Global Partners for Baltimore Aircoil Company before retiring in 2010, responded, “This question is like the famous question asked of Willie Sutton: ‘Why do you rob banks?’ He is supposed to have answered, ‘That is where the money is.’ BAC is in China because it is one of the world’s largest markets.”
BAC established an office in China in 1987, but began exporting to China long before this. Today it continues to grow in spite of adverse economic factors.
Shouldn’t your business investigate whether and how China should be part of your growth strategy?
Here are five reasons leaders of small and medium enterprise (SMEs) should seriously consider the China market:
- China’s economy continues steady growth in spite of the global financial crisis.
- China is the United State’s third largest export market, displacing Japan.
- US Exports to China by small and medium businesses is growing rapidly.
- China’s prosperity is spawning more growth and new opportunities.
- There is a wealth of knowledge and resources to help companies succeed in China.
Over the next several weeks, we will elaborate on each of these points to help you assess if a China strategy should be part of your company’s growth plan.