We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Subscriptions
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • The Logistics of Defense
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Subscriptions
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • The Logistics of Defense
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » U.S. companies can succeed in China, but it won't be easy
newsworthy

U.S. companies can succeed in China, but it won't be easy

April 5, 2010
Toby Gooley
No Comments

Google's travails in China, Chinese policies favoring domestic content in manufactured goods, and congressional rumblings about China's currency have fueled perceptions that U.S. companies are "souring" on that country, but that picture isn't entirely accurate, according to a top executive of the U.S.-China Business Council. "It's an intriguing bit of hype... . But the reality is somewhat less dramatic," said Erin Ennis in her keynote address at the Coalition of New England Companies for Trade (CONECT) Northeast Trade & Transportation Conference in March. "Companies face significant challenges in China that they want addressed, but the market remains important to their bottom lines, so they want to see those challenges addressed in ways that are constructive and productive."

Although China clearly has felt the effects of the global recession, it's been one of the few economic bright spots, Ennis continued. U.S. exports to China set records in November and December, for instance. But her group remains concerned that China's regulatory controls could rein in export growth. A particularly onerous practice is China's requirement that foreign companies obtain a separate license for each individual office and product, she said. The process for licensing a representative office, for example, can take nine months, yet the license is only good for a year from the application date—meaning the entire process must begin anew just three months after the license is approved, she said.

"Indigenous innovation" policies intended to boost domestic design and manufacturing at the expense of foreign producers are creating huge headaches for foreign companies, according to Ennis. In November 2009, the government announced that buyers at Chinese government agencies would give preference to products that contain intellectual property developed, owned, and registered in China. The rule mostly affects computers, software, telecommunications, and "green" technology.

In addition to the national government's rules, some provinces require domestic, regional, and even local content in certain products, Ennis said. This forces many companies to develop China-only versions of their products. These policies "do not flat-out say they are favoring domestic producers, but when they are implemented, you see that's what's happening," she said.

Editor's note: This article is a revised version of a news article that was posted last week, "Doing business in China tougher than ever, trade group exec says." The original article contained reporting errors.

Global Logistics
  • Related Articles

    U.S.-China trade expert: Don't expect resolution of trade dispute any time soon

    U.S. Chamber: International trade can help get U.S. economy moving

    Logistics technology flowers in China

Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.

Recent Articles by Toby Gooley

Better together

Rightsizing your forklift fleet in uncertain times

National Forklift Safety Day 2020 focuses on safety best practices

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Roadrunner Freight bolsters LTL capabilities with $50 million in new backing

  • Southeastern Freight Lines Promotes Marty Cox to Service Center Manager in Cincinnati, Ohio

  • Pull back or go deeper—how the pandemic influenced shipper-3PL engagement

  • Boston Dynamics trials box-lifting robot for unloading trucks

  • The growing crisis in agriculture exports: interview with Peter Friedmann

Now Playing on DCV-TV

Ae46f19c 518e 4be0 a8b7 0fdf8f1f806c

PlastiCorr: Reusable, Sustainable Brown Box Replacement

DCV-TV 4: Viewer Contributed
PlastiCorr is a drop-in replacement for single-use corrugated fiber boxes with identical functionality and enhanced features. Its patented design offers repeatable, reliable performance for re-use up to 70 times.

FEATURED WHITE PAPERS

  • Special Report: Supply Chain Trends in Retail & Consumer Goods

  • Fortify Your Operational Resilience

  • Cold Storage Automation: Leveraging Advanced Technologies to Meet Increasing Demand

  • The modern warehouse: Maximizing productivity and capacity

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing