China’s Role for US Small Businesses

China and the United States have different economic and political agendas which impact business relationships between the countries. However, over the years, thetopdailynews the United States and China have continued to grow in importance to each other – despite trade tensions.

In 2006, the USA sold over $55 billion in goods to China. So, while there is negative publicity about the roughly $290 billion in imports from China, there are enormous business opportunities for USA businesses working with Chinese businesses – buying and selling to drive top-line and bottom-line growth.

Small Business Opportunities with China are Growing It is not only large multinational USA companies that are benefiting from their business relationships with China. The number of small and mid-size USA companies trading with China continues to grow. Over the past 15 years, thealike small and mid-size companies that export to China have grown ten-fold to nearly 30,000 companies.

According to the US Census Bureau, webcorporate the US has a trade surplus in 8 out of 10 high-technology product categories. The majority of the US trade deficit with China is primarily in consumer products, such as electronic games, CD/DVD players, and laptop PCs. For many US market segments, there is relatively balanced trade with China.

Small and mid-size companies are taking advantage of growing opportunities to sell unique products to China customers as the standard of living improves in China. US companies are also driving growth by filling product gaps with China products intended for US customers. Of course, playretrogames US companies also continue to source greater numbers of competitively priced components in China to improve their global competitive position.

Business and Political Complex Agendas Trying to improve business conditions between China and the USA through political trade barriers could negatively impact the standard of living in each country by potentially reducing trade between the countries, raising consumer prices, driving up interest rates, and slowing the economic growth of both countries. Pitting the largest global economy in a trade war with the world’s fastest-growing economy is a risky business deed for the entire world economy.

Just in the USA, kattendingen small and mid-size businesses that rely on China as a source of supply and/or a market for their products could be forced to rethink their supply chain strategy and business development plans that are critical to their business performance goals.

China Partners Support US Small Businesses Local Chinese business consulting and marketing organizations are well suited to assist small US businesses to develop their China business plan and reaching targeted Chinese markets. These Chinese support businesses are expanding rapidly in China to meet the demand from US companies. US firms have access to local Chinese business partners with experience in virtually all Chinese market segments.

For small US firms planning to do business in China, uncapped-fibre-deals having a professional local Chinese partner can be critical to success. Local business partners would typically be available to assist USA firms in successfully expanding their presence in China – by answering questions, such as:


  • How can local Chinese marketing & manufacturing partners be identified and qualified?
  • What investment options might be considered in China since it is now in the WTO?
  • What types of governmental legal, financial, and taxation regulations must be managed to do business in China?

Penetrating China Markets 

Chinese markets afford tremendous opportunities for USA businesses. Local China partners can guide US firms by assisting in;


  • Identifying Business Opportunities
  • Finding Strategic Trading Partners
  • Working with Local Authorities
  • Assisting with Business Development


Manufacturing in China

US companies interested in expanding to improve their cost competitiveness could partner with local Chinese organizations with expertise in planning and execution of manufacturing operations in China. Specifically, firms should consider:


  • Facility Planning
  • Geographic Location
  • Legal and Tax Issues
  • Supply China Considerations
  • Risk Mitigation Actions
  • Implementation Planning


Sourcing in China

China business partners are available to assist US firms to understand the Chinese supply chain opportunities and challenges in China and can improve the probability of success by:


  • Finding Professional Sourcing Partners & Suppliers
  • Helping with Taxes and Legal Documentation Issues
  • Assisting in Supplier Management and Audits
  • Providing Logistics Import/Export Support


Today, small US businesses are competing in the global market environment – almost regardless of their product market focus. Considering the positive and negative impact of China its business strategy can be critical to sustaining long-term success, whether it is China’s rapidly growing markets or China’s highly competitive manufacturing and sourcing opportunities.

“A well thought out China strategy should be a strong consideration for small businesses”, said Darrell Wilk. “It could make the difference in the growth and prosperity of your company.”

Darrell Wilk is a Global Business Consultant and Instructor at Concordia University in St. Paul, Minnesota, and Argosy University in Eagan, Minnesota focused on Marketing, Strategic Planning, and Global Business Development. Darrell has extensive experience in consulting on China business opportunities. In addition, he instructs Executive Sales Leadership at the University of Wisconsin, Madison Executive Education.


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