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How China Will Change Your Business. Inc. Magazine, March 2005 Brian Williams Silvestre Trujillo. Summary. China can come at you in a lot of ways, from all directions World’s largest maker of TVs, DVD players, and cell phones

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how china will change your business

How China Will Change Your Business

Inc. Magazine, March 2005

Brian Williams

Silvestre Trujillo

summary
Summary
  • China can come at you in a lot of ways, from all directions
      • World’s largest maker of TVs, DVD players, and cell phones
      • Closing in on becoming leader in biotech and computer manufacturing
      • China has the power to enter pretty much any market
      • Article listed 14 important truths that American’s need to acknowledge about China’s rise
china s economy is larger than the official numbers show
China’s economy is larger than the official numbers show
  • In 2003, official GDP was $1.4 trillion, but is estimated to be somewhere around $6.6 trillion
  • Incentives to underreport
  • Only measures legal economy
china can be a bully
China can be a bully
  • From 2000-2003, exports of wooden bedroom furniture rose from $360 million to nearly $1.2 billion
  • American furniture work force dropped by 35,000
  • China now makes 40% of all wooden furniture in the U.S.
china now sets the global benchmark for prices
China now sets the global benchmark for prices
  • “China price”
  • Prices fell in nearly every product category where China was the top exporter between 1998 and 2004
      • Personal computers 28%
      • TVs 12%
      • Cameras and toys 8%
no company has embraced china s potential more vigorously than wal mart
No company has embraced China’s potential more vigorously than Wal-Mart
  • Estimated that 50-85% of Wal-Mart goods come from China
  • 10-13% of everything China sends to the U.S. ends up on Wal-Mart’s shelves
  • More than 80% of Wal-Mart’s 6,000 factories are in China
piracy is a problem
Piracy is a problem

http://www.youtube.com/watch?v=FA6k54wPVfk

questions
Questions
  • Do you think there are any ways American companies can protect themselves from piracy?
  • Do you think that China could potentially become a superpower?
  • Do you think countries will start leaving China and what other countries do you believe will become the “new China?”