Doing Business in China For Dummies®

Deciding Whether China Is a Good Fit for Your Business

Many traditional manufacturers face rising business costs. Spiraling wages, higher energy costs, and other cost-drivers have taken their toll. Manufacturers have seen others go under before them. As they look for ways to become more competitive, their eyes turn toward China.

Some companies are better suited than others for doing business in China. This section can help you and your company understand some of the important characteristics of a business that’s likely to succeed in China. By taking stock of your company, you can evaluate your company’s readiness for China.

Your company shouldn’t go to China because everyone else seems to be going there. And going to China as the last resort — because your business is already on its knees — isn’t a smart move either. Consider doing business in China for one reason: because it makes good business sense.

Considering your employees

Many companies take pride in the fact that they’ve been a local manufacturer in their home community. Some companies have been in business for several generations. These companies have created jobs for local people, and the company leaders are part of the fabric in the community where they live. Unfortunately, many of these companies are under extreme pressure to improve margins, lower costs, or boost productivity.

For companies like these and other less-established ...