China became a member of the WTO on 11 December 2001 and, overall, the Chinese economy has shown exceptional economic growth over the last decade, closely associated with China’s increased integration with the global economy. With a population exceeding 1.3 billion, continued economic growth and a large supply of inexpensive and productive labour, China lures businesses from around the world. Most global firms agree that companies cannot be globally successful if they ignore this huge emerging market.
Questions
1. What factors should companies consider when determining the best form of operation to use when entering the Chinese market?
2. What can be the challenges and opportunities for foreign companies in establishing collaborative arrangements, like joint ventures, in China?