Why the China Market?

It’s no secret: the China market offers unprecedented opportunities for sustained profit on a massive scale. You can reach 1 billion consumers with disposable income—and their numbers and incomes are growing fast.

When you produce for such a large additional market, it’s easy to maximize economies of scale. You can further reduce expenditures and increase profits by manufacturing in China. You’ll take advantage of already low Chinese production costs plus slash your spending for transport and distribution by keeping goods in China for local sale.

Foreign companies have taken the recent economic direction and more open government policies in China as encouragement to sell there. They’re scrambling to establish themselves in the China market ahead of their competitors.

However, one concern for many companies considering entry into the China market is imitation. If you’re selling a good product, someone in China will imitate it... which is actually an excellent reason to sell in China. Enterprising imitators can knock off your product in China even if you don’t sell there. Produce, distribute and sell in China and you can compete with them on a level playing field. Plus you can work locally to engage highly competent lawyers and obtain Chinese patents.

You can avoid knock-offs altogether by selling industrial machinery, electronics, medical devices and other high-tech products that require high precision not easily replicated in China.