China is one of the most lucrative markets to conduct business. It has a total population of over 1.3 billion citizens and a land mass that is larger as compared to that of the United States (Rudd, 2015). The country is a huge potential market for the foreign manufactured services and goods. However, some of the entrepreneurs experience challenges in identifying the market opportunities in the country. The United States has different reasons for its entry in China. The Citizens have an outstanding work ethic and have a wide array of professional skills. If the United States choose to venture to the country, it will be dealing with competent individuals, who are committed to achieve the set goals. Hence, it will be profitable for its companies to conduct their business in China.
China has been experiencing tremendous economic growth over the last four years. As the economy of the country matures, the Gross Domestic Product (GDP) will increase resulting from soaring household incomes (Womack, 2016). The economic expansion is attractive to foreign investors to start a business in the country. In overall, organizations have a competitive advantage, which leads to their overall success in the international markets. China is changing into a mass consumer market and might overtake the United States. The country has numerous opportunities for the companies seeking to expand their operations in international markets (Rudd, 2015). However, the management ought to assess the benefits and disadvantages of doing business in China to determine if it is the right market for their products and services.
The United States and China signed a trade agreement to open up the Chinese market to the United States. The treaty could lead to new market entry for United States exports to China. Meltzer, (2017) contends that America will resume its beef export business to the Chinese markets. Through the trade agreement, the former agreed to accept imports of cooked chicken from the latter. Xi Jinping, a Chinese president, announced the “One belt One Road” initiative in 2013 (Meltzer, 2017). It was an approach to enhance the economic and social structure in Europe, North Eastern Africa, and Asia as the residing places of about half of the world’s population. Xi Jinping proposed for an improvement of transport infrastructure and to enhance social, cultural, and political ties through the OBOR initiative. Eventually, it would heighten political peace and stability in the world.
President Trump announced that the executives from Chinese and United States companies have signed an agreement to collaborate as a way to enhance trade among the two countries. Meltzer, (2017) has conducted an extensive research on the business deals between China and the United States. Because China has been experiencing economic growth over the last four years, I agree that the United States companies have numerous opportunities to invest in the foreign land. In fact, China is likely to surpass America in overall growth of the economy over the next few decades. However, the executives in the United States should understand the cultural practices in China in order to operate efficiently.
The United States government has signed a multifaceted trade agreement with China. Over the last five years, China has registered an impeccable economic growth. In fact, the number of people in the middle class has escalated. Therefore, the United States has numerous opportunities to export its products to China. Similarly, Chinese companies can invest in the United States resulting from signing of the trade agreement between the two countries. The two are the largest trading nations on a global perspective.