U.S. companies can sometimes encounter barriers in their efforts to expand into China or grow their Chinese operations. For example, in some industries, such businesses could encounter significant market access restrictions.
Recently, some trade deals were reached between the U.S. and China which could, among other things, open the door to improved market access to China for certain U.S. industries.
For one, China agreed to, by mid-July, allow U.S. beef to be exported to China. In 2003, China banned the importing of such beef over concerns regarding mad cow disease. Last year, the ban was conditionally lifted, but progress had been going slow.
Also, a deal has been reached under which China will take certain actions aimed at improving market access for certain types of U.S. financial companies, including credit rating services and card payment services.
Questions have come up regarding what impacts these deals will end up having and what they will end up doing regarding the ability for U.S. companies in the affected industries to have a chance to be competitive in China. So, the implementation of these deals and what happens in the wake of such implementation could be something worth closely watching. What do you think the results of these deals will be?
Now, simply having market access to China doesn’t guarantee success for a U.S. company in creating or expanding a market presence in China. Many things can have impacts on a U.S. company’s business efforts in China. This includes how the company navigates the special legal issues related to doing business in China and responds to any business disputes that come up for it in China. An important thing to note is that U.S. businesses can bring in legal help and guidance when it comes to these impactful matters.
Source: Reuters, “U.S., China agree to first trade steps under 100-day plan,” Ayesha Rascoe and Michael Martina, May 12, 2017