The Importance of China for International Marketers

The importance of China for International Marketers
Introduction
  Background and Literature Review
      Current Economic Conditions in China
    China is the fastest-growing major economy in the world, and has remained as the fastest growing major economy for the past 30 years with an average annual GDP growth rate over 10%. Similarly, China’s per capita income has grown at an average annual rate of more than 8% over the last three decades (Walters & Samiee, 2003). According to the 2009 official figures, China has become the second largest economy in the world after the US with a GDP of US$8.8 trillion, as measured on a purchasing power parity basis (Wikipedia, 2010). As an emerging market that is experiencing the strongest and most rapid economic growth, China plays a significant role in the international trading market. In November 1991, China joined the Asia-Pacific Economic Cooperation (APEC) group, which promotes free trade and cooperation in the economic, trade, investment, and technology spheres. Ten years later, China was admitted as a fully fledged member of the World Trade Organisation (WTO), opening doors for global trading. The nation’s primary trading partners include Japan, Taiwan, the U.S., South Korea, Hong Kong, Germany, Singapore, Russia, and the Netherlands (Wikipedia, 2010). By the end of January 2010, China has overtaken Germany as the world’s biggest exporter with the total export of more US$1.2 trillion against US$1.17 trillion forecasted for Germany (Ampong, 2010).
      Foreign Investment in China     China has been very successful in attracting foreign direct investment (FDI) since it opened its door in the late 1970s. Foreign investments in China have expanded dramatically to reach an annual total of US$34 billion in 1994 and 1995, US$42.6 billion in 1996, and US$ 45.3 billion in 1997. China has been the second largest recipient of FDI in the world after the US since 1993 (Li, 2000). By the end of 1996, 284,000 foreign...