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Multinational Companies Take Root In China'S Domestic Shoe Enterprises Face Challenges

2012/5/9 18:05:00 21

Multinational CompaniesCanvas ShoesChinese Market

 


 


American enterprises are expected to slightly reduce their investment in China this year.

The reason why American companies stay in China is because they look at Chinese consumers, not American consumers.

Respondents said that margins in China remain high, but they are under pressure.


When you enter any department store in the United States, you will find that half of the goods on the rack, from canvas shoes to consumer goods in daily life, all contain "

Made in China

The sign.

However, as a world exporter, China is disappearing.

Instead, China is an importing country.

In the next ten or twenty years, the significance of China's domestic economy to its domestic and foreign investors will become more and more important.

This is quite different from the manufacturing industry in the first five years of 80s and 90s and even in the first half of this century.


  

pnational corporations

More and more worries about what they are worrying all the time - rising wages and welfare levels.


China is entering the middle class society.

China will have to build a social security system that does not exist for the about one billion people at present.

This is no longer the China of the past.

It is difficult for American companies to find a market with a large scale and low wages, welfare and management level.

The new China is on the rise. Although this means higher costs for American enterprises, they seem to realize that a richer China, even more stringent in management, has to leave China.

Although production costs rose in 2011, 39% of respondents claimed that their profit margins in China were still higher than those in other parts of the world.


The members of the China Chamber of Commerce in the United States are less optimistic than they did last year when they look forward to this year.

These shoe companies still have lucrative business in China, but profit margins are shrinking.

So they have made relatively less investment and expansion plans.

Taking into account this year's business challenges, the concerns of American companies are mainly focused on operational and macroeconomic risks.


The report points out that the increase in costs and

Human resources

The restrictions are facing increasing challenges for the shoe companies interviewed.

The discontinuity of licensing system and forced technology pfer are the main obstacles to the entry of American companies into the Chinese market.

Although the Chinese government has been trying to protect intellectual property rights, respondents still think the protection system is rather weak.

"But our members are still deeply rooted in China," the report wrote. "In recent years, the number of members claiming to take root in China for the service of the Chinese market has been steadily increasing and occupying the majority of the chamber of Commerce.


 


 

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