This is a very long article by Venessa Wong (seen here) in Corporate Board Member dealing with China’s economic explosion.She gives examples: General Electric is working with the National Development and Reform Commissionhelp improve China’s environment and develop its domestic companies. Geoff Li, director of communications at GE China, said, “We understand China’s needs and align our capabilities with its needs.”
Like GE, ambitious companies throughout the world continue to seek a stake in China’s economic explosion. In 2006 foreign investment totaled $69.5 billion, making China the third-biggest destination after the UK and the US.
Another year of double-digit GDP growth is predicted for 2007.
Some analysts expect China to surpass the US as the largest economy by 2050.
Opportunities remain abundant—for the prepared, the persistent, and those who can adapt to changing winds. To help their companies develop successful China strategies, boards must keep in mind several key factors that are changing the business landscape there.
First, the China market is becoming increasingly competitive. The low-hanging fruit is harder to find. It is vital that companies identify in detail the reasons they are setting up or expanding in China, and generate solid business strategies to meet those goals.
Protection against faulty supply chains and disastrous product recalls is obviously one of them. And on it goes. It is thorough, opinionated, readable.
The article is in Corporate Board Member and quotes an expert as saying while companies looking to enter the market now “have a latecomer disadvantage, you can also learn from others’ mistakes.”
Well worth reading in full.
Well worth reading in full.
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