Never Too Late: Leveraging the Chinese Economic Opportunity

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With more than 1.4 billion consumers, China is an integral participant in the global marketplace and has made great strides in modernizing its economy and taking a strong position in the international economic and political community. However, China has been known for manufacturing the technology developed in other countries, it is quickly developing the resources — human and capital — to take the lead in future technological advances.

United States companies may want to consider what impact the Chinese economic influence will have on future market demands and supply chain management. At some point, a United States business will likely interact with a Chinese-dominated company; and those businesses that develop a strategic approach are likely to be better positioned to take advantage of such opportunities.

Many United States companies fail to appreciate that they are unable to immediately leverage a Chinese connection. Whether the opportunity is to (1) enter the Chinese market, (2) utilize a traditional business arrangement where a Chinese partner provides components as a part of an international supply chain or (3) partner with a Chinese company that seeks direct opportunities in the United States, the first step is intelligence gathering, otherwise known as performing “due diligence.”

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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