On 888, China wants you to know one thing.

Posted by John Park on Aug 8th, 2008
2008
Aug 8

KFC in Beijing China

 

The Olympics are starting today in Beijing, China.  The communist regime has spent over $44 Billion dollars in preparation for the games.  Keep in mind that this figure is based on Chinese math where a skilled construction worker makes $15 dollars a day.  Aside from the obvious euphoria of nationalism spilling into every corner of the massive country, there is also a more deeper and important reason for the huge expenditure.
 
The message is crystal clear.  China is OPEN for business.  That’s right.  China wants the young man to go EAST.
 
This country of 1.3 Billion people, roughly 4 times the size of U.S., is determined to become an economic superpower at any cost.  China is not a sleeping giant.  It is a giant doing jumping jacks.  So, how should we view this situation as American business owners?  Is it an opportunity?  Should we learn Chinese?  Do you remember in the nineties when we were all supposed to learn Japanese?
 
The big American companies are already doing business, a lot of business, in China.  GM and Ford are actually making money in China.  Did you know that the #1 luxury car in China is a black Buick sedan?  KFC is growing at a profit pace of 30% per year and of course the Golden Arches are there as well.  This sounds pretty good, right?  Well, it’s not good for Americans or American businesses.  The problem is we’re not exporting these products and services to China.  Instead these American brands are being produced in China by Chinese workers for Chinese people.  And, as soon as they meet the demands of their own people, the same American brands will then be exported back to the United States.  That’s right, we will be importing Fords and Chevys from China sooner than later.
 
The success of global economics depends largely on one country sending their products to another country.  This allows for the producing country to employee more people and to reap the financial benefits.  Because of the huge gap in labor costs, there is almost no incentive for China to import products from the U.S.  The only exception is the stuff they cannot make themselves.  This fact is essentially the key to seizing the enormous business opportunity created by China.
 
What do the Chinese people need during this exponential grow stage that they cannot produce or produce enough of themselves?  If you’re thinking about doing business in China, this is the question you have to answer to determine if your product or service qualifies.  If you firmly believe it does, it might be time to explore your global business aspirations.  Opportunities like China present itself maybe once or twice in a century.  We don’t have to watch the game from the sidelines.  Let’s jump in and show the Chinese what the “American Dream” is all about.
 
CARPE DIEM.
 
GO TEAM USA!!!

 

 

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