New Opportunities and Old Challenges for US Companies Approaching the China Market

Tuesday September 15th 1:00-3:00pm Concord, NH $30 per person

The China market has been growing at an average 9% per year for the past 25 years. Even in a difficult year for the world economy like 2009, China is still projected to grow at around 8% - a market that US companies cannot afford to ignore.

Historically most new international companies entering the China market did so by first establishing a presence in cities like Shanghai, Beijing and Guangzhou, and use that as a base for expansion.

However, an important trend is for more and more companies approaching China to consider entering via the so called "Tier 2" cities. Though China's Tier 2 cities account for only about 6% of China's population, they accounted for around 48% of the country's total Foreign Direct Investment (FDI) in 2008. They are also less saturated markets, with lower operating costs and an increasingly wealthier consumer population.

Tier 2 cities are also benefiting from the "stimulus package" put in place by the Central Government in response to the economic crisis - all factors that can represent potential opportunities for US companies considering the China market.