Tremendous growth in internet sector highlights China´s importance for European technology enterprises.  Internet
spending in China will skyrocket from currently 220 million US$ to
11.7 billion US$ in 2004, forecasts International Data Corporation,
the worlds leading market research institute for the IT industry.
According to an official survey by China Internet Information Center
(CNNIC), the number of internet users in China quadrupled in the year
from December to December 1999 to 8.9 million and is expected to reach
20 million by the end of 2000.China´s admission to the WTO, expected later this year, will be conducive to the reduction of trade barriers and the safeguarding of intellectual property rights. This development adds a new dimension to the Chinese market for growth-oriented, internationally competitive technology enterprises. With experienced partners like the Munich based China Consulting Dr. Rummel & Partner Ltd., small and medium-sized technology enterprises considering to enter the Chinese market can overcome the high entry barriers, which, because of the special circumstances of this market, persist in spite of strong liberalisation efforts. As a first step it is advisable to actively get in touch with potential sales partners in China, in order to negotiate licence agreements. This approach enables foreign technology enterprises to enter the Chinese market with a minimum financial risk. The expenditures of German companies for market entry in China can be refinanced through state loans/ subsidies-sponsored support programs, sometimes covering up to 75% of the total investment. The founding of wholly foreign owned marketing agencies subsidiaries and/or the take-over of suitable Chinese sales partners is also possible. One of the crucial factors of business success in China is access to a reliable, far reaching network to ensure the fast and efficient implementation of projects ("Guanxi"). In the years to come China will gain more and more importance for the sustainable success of any globally oriented technology enterprise. © 2000 China Consulting Dr. Rummel & Partner GmbH --- Subscribe to our newsletter to receive the latest news --- |
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