The Small Biz Gateway to China
Now is the time for small businesses to consider entering China, at least according to Mark Whistler, coauthor of Investment U's Profit from China.
"It's as simple as GDP," Whistler says. In China, "you're talking about an economy growing 200% more than the U.S.," and with more and more Chinese companies competing for U.S. business, "communication and product quality have never been better."
Continued globalization, along with more dependable and efficient businesses in China, have spurred the savviest of U.S. corporations to take up a presence in the Asian country.
"Small-business owners who haven't looked into the possibility of moving or contracting to China could simply be missing a great opportunity," he points out.TheStreet.com recently asked Whistler more about this huge potential for small businesses. TheStreet.com: What are the benefits of a small business looking to enter the Chinese market? Mark Whistler: Before the new millennium, China was difficult to tap for small businesses. But with its membership to the World Trade Organization in 2001, China has made much progress toward opening trade and business lines for huge multinational corporations and small businesses alike. Second, the blistering growth of China's middle class ... is creating a surge of consumer spending that rivals any other country in the world. Case in point, sales of mobile phones in China increased 40% year-over-year in 2006. Because China was late to the party in terms of imitating American-like spending habits, residents are now lustfully coveting consumer goods. With more than 1.3 billion consumers, China's numbers speak for themselves, and given that the savings rate in China is somewhere around 30%, there's plenty of expendable cash to go around. Keep in mind, it may be hard for many businesses to capitalize on this pool of consumer cash unless their products or services have a low enough cost basis to compensate for product pricing and exchange rates. Third, the low cost of labor, plain and simple. For manufacturing, China's hard to beat. Goods are inexpensive, and labor is even cheaper.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV