China's Market Essay Example | Topics and Well Written Essays - 500 words

China's Market - Essay Example Foreign companies on the other hand feel insecure in Chinese government expectations because they will be forced to bargain away business secrets and intelligence in exchange for sales which may not be wise in the long term. The question this paper seeks to answer is whether foreign companies in china should risk loss of sales by refusing to transfer knowledge or just go along with the Chinese government terms and conditions? These global companies should flatly refuse to move production to China considering that it is a communist country and the risks involved. It is very unfair for the Chinese government to subject these global companies to rules such as for them to make sales in china; they have to relocate production in China considering the fact that they have not lacked the resources back in their countries. The Chinese companies want to learn modern management skills and acquire technology from these non-Chinese companies. This is taking advantage of these non-Chinese companies just because China offers an attractive market in terms of size and growth rate. The global companies should instead try to penetrate the Chinese market in another dimension. Through aggressive marketing can overcome this bottleneck that China presents to the global companies. (Krott & Williamsson , 2003). The shift in production to the China benefits China more because it creates employment to its people and at the same time they acquire the vital skills especially in technology. This is a great danger to the mother companies because there is the risk of rival companies acquiring this technology. At the same time you cannot ignore the lucrative market that China is offering. Moreover, the manpower in China is so cheap, thus saving the global companies a lot of money in production and operation costs. (Krott & Williamsson , 2003) The fact that there is a ready market for these companies in China is quite irresistible. Additionally, China can be a central distributing point