The New York Times just ran an article, titled, Chinese Economy Grows to 4th Largest in the World, which muses that by most measures, China is actually the third largest. Today’s International Herald Tribune ran what could be seen as a complementary article, entitled World’s CEOs Focus on China for Growth More than Cost [link no longer exists]. This article discusses how “a majority of the world’s top chief executives plan to invest in China over the next three years to win customers” and to win market access, rather than just to reduce costs, which are expected to rise quickly over the next few years in any event.
It goes on to talk about how these companies are forming WFOEs and Joint Ventures in China to establish themselves there for the long term. It is time for SMEs to be thinking likewise.
For how much longer will China remain the world’s factory?