|
China: Opportunities and Uncertanties
The scale and growth of China's economy are staggering. Since 2000, China has contributed more to world economic growth than the United States and curently employs more people than the entire US population. In the last 15 years, foreign direct investment in the country has increased 15% per annum, indicating that the rest of the world is becoming increasingly aware of the business potential in China.
 |
Though the current economy is disproportionately composed of simple manufacturing goods and raw materials, China is making large investments in higher education and will soon top the US in numbers of engineering PhDs given per year. Massive infrastructural improvements and school construction programs in more rural areas also suggest that China will be able to utilize ever more of its potential in the comming years. |
There are many challenges for the small firm that wishes to do business in the country. The Harvard Business Review notes that for the next ten years, large "multinationals should be the winners in China." Their conclusion was made because of the large fixed cost that is often needed to enter into Chinese business. While it has made large strides in opening the economy, the Chinese government still prefrers firms with signifigant assets who can offer services or investment not currently availiable. In a country of over one billion people, firms must be heavily endowed to make a signifigant investment.
China Brazil consulting can help your firm evaultate opportunities in the Chinese market, perform startup investment analysis and provide translation services.
Tyler Van Leeuwen will be working in China on an education project from July until December of this year. Our China expert is Sum Neu Gai
|
