Understanding entry modes into the Chinese market
China became a member of the World Trade Organization (WTO) on 11 December, 2001 and, overall, the Chinese economy has shown exceptional economic growth over the last five years, closely associated with China's increased integration with the global economy. With a population exceeding 1.3 billion, continued economic growth and a large supply of inexpensive and productive labour, China lures businesses from around the world. Most global firms agree that companies can not be globally successful if they ignore this huge emerging market.

Questions

1. What factors do companies consider when determining the best form of operation to use when entering the Chinese market?

2. What have been the challenges and opportunities for foreign companies in establishing collaborative arrangements in China?

3. How have Chinese government policies and attitudes towards foreign businesses evolved? How have these changes affected foreign companies' forms of operations in China?