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China has become a high potential business destination for multinational corporations of late. China business is offering excellent opportunities for import and export in the face of growing competition from global sourcing. China business is perhaps the most dynamic and vibrant one in the whole of developing world and is growing feverishly with countless global sourcing and import/export companies rushing in each year. Statistics place China business on top for attracting US$345.6bn foreign direct investment from 2001 through 2005.

Success in China business depends a lot on developing acquaintances and networking, no matter yours is manufacturing or plain import & export. The differences in China business culture require foreign companies to get acquainted with precise strategies to tackle dealings in China. Tactics for China business involves respecting superiors, staff and their families. Luncheon meetings with alcohol servings are common in China business culture.

-China Business Potential vis-à-vis Import and Export

China business import and export has increased steadily at around 20% each year in the last decade and currently stands at US$ 1761bn with a surplus of $177.5bn posing challenges to global sourcing. The top five import/export from China business accounted for a whopping $218bn with US while the import and export totaled $343bn for ten positions in 2006.

The trade balance from import/export with China business stands at $232.5bn in Chinese favor. The import/export encompasses high-tech to low-end consumer goods underlining the huge potential in the face of general global sourcing. The profit potential may be assumed to be the difference between the amount had the import and export been through traditional global sourcing which is safely 15-20%.

Import & export had always been the main stay of US economy and the evolution of China business and economy has augmented this. It appears as if China is turning the US way as about half of its GDP is from import and export with ten of its trading partners.

-Significance of Chinese Import and Export to USA Traders

Import and export from China comprises all that the US B2B and consumer market demands without counting global sourcing. Domestic supply chain apparently has gains to be made from import/export and China business, provided plans are executed well. For example, the story of China business and Chinese pharmaceutical generics is well known and needs no introduction. Once the supply chain channels get established, an US trader economizes by either global sourcing or going for import/export from China business.

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Article Source: ArticlesBase.com - China Business Potential