What Happened to the China Market

Although the Peoples' Republic of China has not become a huge market for American goods, neither is it devoid of opportunities for US firms. In the past, China was highly isolationist. In addition, production decisions ignored market needs and demands. Beginning in 1978 with the removal from power of the isolationists, a new economic policy has resulted in increased attention to product quality, a more realistic pricing policy, and a commitment to making the best use of resources. For US firms wishing to do business with China, 2 issues are paramount: 1. China's desire for the transfer of technology, and 2. the obsession of the Chinese with the need to conserve or earn foreign exchange. In agriculture, China has a need for modernization and mechanization and is interested in developments in science and genetics. While the Chinese are protectionist toward the country's infant consumer industries, opportunities abound in upgrading technology and improving quality levels.