For decades, China has been a top destination for foreign firms to move their operations abroad, now the trend is reversing—Chinese firms, especially manufacturers, are now moving to the US, not only to lower the cost of production but also to build their brands in global market. Indeed, China is losing its old advantage of cheap labor and raw material, and in certain parts of the US, the land is much cheaper than in China. Meanwhile, the re-booming US economy, flexible financial system and beneficiary tax policies are also driving ambitious Chinese entrepreneurs, who are changing the “Made in China” to “Made in the US”.
Under the banner industrial policy “Made in China 2025”, China seeks to replace the advanced foreign manufactured goods that it has long relied upon with domestically-produced goods. But the effort is spooking the foreign business community, and the plan may not address China’s most genuine needs. Precise details of the implementation of the grand policy are only now beginning to emerge. For Chinese companies, the real long-term impact of the plan is at best unclear. But for foreign companies, although there will be business opportunities in the short-term, the plan as a whole presents big challenges to their future in China.
Chinese consumers have changed faster than consumers in probably any other market. Increasing exposure to international media and social media is changing the expectations of Chinese consumers. On top of that, the broad economic slowdown and brand saturation in China has ratcheted up competition to new levels as the days of easy money disappear. For both multinationals and Chinese companies, the changing market dynamics present challenges they have never seen before. In this interview, Torben Pheiffer, Managing Director of SapientNitro, China, explains how companies need to adapt their branding strategies.
As China’s tech giants expand and diversify, a new era of digital conglomerates is dawning.
As China’s economy matures, the leaders are trying to move manufacturing up the value chain with the Made in China 2025 plan.
With the Made in China 2025 plan, the government is trying to give the manufacturing sector a major boost. A look at the sectors that will get a fillip.
A quick guide to some of the hottest topics that came up during the 2015 Lianghui, the two annual meetings that set the agenda for the Chinese economy.
Politics can often be a deal breaker in business between India and China. But now that might change due to changes in both economies.
Brand strategist Martin Roll talks about the state of branding in Chinese companies and strategies that will help build truly global Chinese brands. Lenovo. Baidu. Alibaba. Huawei. Haier. Tencent. These are just some of the Chinese companies that have seen phenomenal growth over the past decade or so. But how many Chinese companies have really […]
Maybe not so soon… but the tech scene in China is big—and getting bigger. For the past 40 years, Silicon Valley has been to the digital revolution what Detroit was to the automotive revolution–or Manchester to the first industrial revolution, for that matter. But will it last? A growing number of technology executives now believe […]