Preparing to Enter the China Markets

Terry Shidner

Since Deng Xiaoping assumed the reins of power in the late 1970s, no country has modernized as fast - or as drastically - as China. During the last quarter century, China has transformed from a collective agricultural society to a juggernaut of capitalism, investment and high-tech manufacturing. This rise from a mainly agrarian economy to one which boasts 200 urban centers with a population of at least a million people each is truly staggering and unequaled in the history of modern civilization. Coupled with the reunification of Hong Kong and the mainland in 1997 and the growing financial inter-dependency with Taiwan, China is looming on the horizon as a leader in the new world business order. In 2002, China accounted for 16% of the growth in the world economy, ranking second only to the United States. And since 1970, China’s gross domestic product has ballooned from $106 billion to a lofty $1.3 trillion, all of which provides both optimists and pessimists with food for thought. As the Asian market, primarily mainland China, continues to open its doors of opportunity to western businesses, many will find that their first experience into China will be ripe with obstacles and pitfalls. These difficulties stem from the fact that many companies fail to pay proper respect to the intricacies and nuances of this new and emerging market because in China, business is guided by a culture and history centuries in the making. This is often overlooked by those of us from the western world.