James Chan, Ph.D., PresidentAsia Marketing and Managementwww.AsiaMarketingManagement.comOctober 22, 2008IFAI Expo, Charlotte Convention CenterCharlotte, NC

Opportunities & Challenges in the China Market

Three Phases of Trade with China(in billions of US Dollars)

0100200300400

Exports Imports

(1) 1980-1989; (2) 1989-2002; (3) 2002 to present

Wall Street Journal, July 29, 2008, page A9

Wall Street Journal, August 30, 2008, page A7.

China Graduates 350,000 Engineers Each Year Compared To 134,000 in the U.S.

(in thousands)

0

500

1,000

1,500

2,000

2,500

3,000

1993 1995 1997 1999 2001 2003 2005

Source: National Bureau of Statistics of China

China’s Share of World Scientific Literature: 1979-2007 (<1% in 1981 to 9% in 2007)

01000020000300004000050000600007000080000

1979 1982 1985 1988 1991 1994 1997 2000 2003 2006

No. of Papers

National Science Indicators, Christopher King, Thomson Reuters.

Chinese R&D CentersChina graduated 19 Ph.D.’s in 1983; in 2007, it

graduated 50,000 (same as in the U.S.)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2002 2003 2004 2005 2006

AcademicCorporateTotal

Source: National Bureau of Statistics of China

China Has One Lawyer Per 10,000 People (1:300 in the U.S.)

020,00040,00060,00080,000

100,000120,000140,000160,000180,000

1985 1994 1996 1998 2000 2002 2004 2006

Year

Source: National Bureau of Statistics of China

Chinese Industrial Fabrics Market

Annual textile market: 36 million tons Industrial fabrics: 5.4 million tons (15%) Growth rate: 10% Annual import: $1.2 billion (23% from the

U.S. followed by Germany, and Japan) Growth areas: civil engineering,

automobile, water treatment, sanitation, agriculture and fisheries

Beating the ‘China Curve’:Key to Success

Time

Sales

Building Relationships with Your Partner

Visiting Your Partner’s Factory

Your Partner May Be Your Competitor

Cultivating Insiders

Learning the “Unspoken Rules”

China Is An Anthropocentric Culture

2008 Standing Committee of the Chinese Political Bureau