Category: Asia

No longer simply the world’s factory, China has become a stronger global competitor and is now exporting capital, services and technology to buyers of all kinds in both developed and developing nations.

Chief executives may be forgiven for being confused about what is happening between the U.S. and Chinese governments when it comes to use of the terms “markets” and “reforms.” As a recent article in the Wall Street Journal suggests, President Obama’s administration is expecting that Chinese President Xi Jinping will make commitments to more market-oriented reforms when he visits Washington this month.

Over the last four decades, Asia has been a primary engine of global economic growth. This trumpets a call to action for all global CEOs: whether your company presently does business in Asia or not, you’d be well served to become culturally in tune with your Asian counterparts. Only then, as prime opportunities come knocking, can you build the most prosperous and profitable business relationships.

By the time direct sales powerhouse Amway decided to expand into China in 1995, the company had an impressive track record at breaking into foreign markets. In fact, 50 percent of its revenues had been coming from overseas sales since the mid-’80s. 

1. Pick a segment within a fast-growing market sector that still has an unmet need your company can fulfill with a differentiated product or service.

Because of China’s politico-strategic framework, it is crucial for CEOs to understand China’s leaders. That’s why CEOs must know Xi Jinping, China’s upcoming new leader, who will likely lead for 10 years.

In the real world of doing business in China, the landscape is shifting. Foreign companies can no longer do business in China today in the same way that they have in the past.

Already the world’s second-largest economy, China’s future—and the future of companies doing business there—depends on overcoming significant hurdles.Here’s what CEOs had to say at a roundtable at the CEO of the Year.