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How are established companies dealing with current events?

On Behalf of | Jul 15, 2019 | Uncategorized

As a business owner, you know how important relationships are for the success of your company. You likely strive to develop a company culture that will attract those with whom you want to do business.

It can take years to develop trusting cross-cultural relationships. And while many established American companies continue operating successfully in China, you might wonder whether this is a good time to develop your business plan.

Some American companies are focusing on long-term growth in China

Some American businesses believe in China’s long-term economic growth, despite the current stress of increased trade tariffs. With existing joint development opportunities and technological advances, some American companies continue to advance their agendas.

Some companies who are choosing to move forward with business expansion in China include:

  • Starbucks. China is both the largest and fastest-growing international market for Starbucks. The coffee company plans to double its number of locations throughout China within the next three years. And they recently implemented their first “Augmented Reality” experience through their Shanghai Roastery app.  
  • General Electric Co. (GE). The industrial leader has invested over $1.2 billion throughout their years of doing business in Shanghai. GE believes there is opportunity in China’s economic restructuring, whether in clean energy, accessible healthcare or urbanization.
  • Dow Inc. After operating in China for four decades, the materials science company began manufacturing a new resin line for products in June 2019.

Meanwhile, some American firms are using innovative strategies to serve the Chinese market in hopes that their “In China, for China” approach will open doors for prolonged business relationships.

It may take time to define the future success of business transactions between the United States and China. However, understanding the way established American companies approach collaboration with Chinese businesses may shed light on the kind of strategy and transparency required to follow suit.