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International Business, Small Business, U.S. Exports

Exporting to China – 4 Tips for Success

Video: A senior U.S. Commercial Service Officer explains why China is a priority target for American exporters.

China is the world’s fastest-growing major economy, and the fastest-growing U.S. export market.  It is now our second-largest trading partner.  While China’s GDP grew by 10.3 percent in 2010, U.S. exports to China were up 32 percent, reaching $92 billion, and have more than quadrupled since 2000.   Our trade deficit in goods with China totaled $273 billion in 2010, but we had a surplus of $6.7 billion in services trade in 2009.

China is the world’s third-largest market for luxury goods behind Japan and the United States.  There are more than 200 million Chinese citizens with a per capita income over $8,000, and most economists predict a surge in the number of people achieving true middle class status during the next several years.

Four Tips for Exporting to China:

Tip #1: Consider targeting the Shanghai market

Tip #2: Multiple opportunities in multiple sectors

Tip #3: Many models for success

See the video in which a Senior U.S. Commercial Service Officer elaborates on the 3 tips above.

An extra tip, not mentioned by the U.S. Commercial Service…

Tip #4: Set up your in-country sales operations through a sales incubator based in Shanghai or other key markets. 

Sales incubators provide new exporters with a low-cost and low-risk solution to quickly build their own sales team in China. In effect, the sales incubator is an exporter’s outsourced sales office in-country, which builds the foundation of client sales and Chinese distributor support, during the early years of a company’s entry into the Chinese market.

Click on this link to read a recent blog post for more details on the sales incubator model.

For more information about China:

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About rayhays

Ray Hays is an international executive and Member of the District Export Council of Arizona. Ray has over 20 years experience in franchising management, international business development and small business growth. He has field experience in over 50 countries, working for global market leaders in the service sector. He holds an MBA from the Thunderbird School of Global Management and a BS from Georgetown University.

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