With a population of over 1.3 billion, the People’s Republic of China is the most populated country in the world. Since the 1980’s, China has been moving its economy to a more market oriented focus making it a major economic power. China is now the largest exporter to the United States, and has been attracting increasing investment from foreign companies. By 2010 China is forecasted to overtake the U.S and Germany to become one of the largest exporters in the world. By then, Chinese goods and services are estimated to represent as much as 10% of global trade.
China’s admission to the World Trade Organization in 2001 and the publication of the revised foreign investment guidelines in 2002 have made the Chinese market more inviting to foreign companies.
China’s infrastructure has come a long way in the past twenty years, enabling China to support almost any manufacturing need. Special Economic Zones within China offer favorable tax rates and other incentives to encourage and support foreign investment. Manufacturing costs in China remain low while there continues to be a steady increase in the quality of Chinese made products offering potentially high rewards for American and European companies.