China has always been one of the best places for both established and new businesses, and continues to be so to this day. There are many factors that contribute to this success. And here are some of them that could be essential for your business!
Rising Economical Status
Starting an import/export business? Then China is where you need to start. The country’s booming import/export industry has made it home to one of the most thriving business industries in the world.
Over a span of 10 years, the amount of goods and services imported from and exported to China have nearly quadrupled to reach an average of nearly $50 billion annually; a staggering figure that is said to equal nearly 5 times the speed of exports to the other parts of the world.
The growth in the import/export trade is not only attributed to large firms like GE, Motorola, United Technologies and DuPont etc. China also exports products and services from several small to mid-size organizations from around the world, offering these companies a chance to grow substantially as well. Statistics reveal that the number of companies exporting to China has crossed the 20,000 mark, an unbelievable figure if you consider that it was just 3100 back in 1992.
Favorable Market Conditions
The USA happens to be the third largest investor of China, contributing over 3 billion dollars annually to its expanding domestic and international markets. The country happens to the most favorable destination for countries wishing to expand their branches, thanks to many favorable conditions like cheap and investment incentives and cheap (and competitive) labor market which are considered very beneficial for the local market conditions, especially uncertain ones.
Potential Market for Global Competition
China happens to be right behind Canada and Mexico as the third largest partner for exports in the USA. And these services are not limited to certain businesses like energy, construction and agribusiness. China has opened up its export market to accommodate new sectors like Environmental, Telecommunications, Industry, Infrastructure, Machine Tools, Medical, Recreation and Security etc. And the list keeps on increasing every year. And that in turn would be more beneficial for a company willing to export its products or services to China.