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  Fortune 1 Perspective

In contrast to the traditional Chinese joint venture, the WFOE – Wholly Foreign Owned Enterprise – is increasingly the most popular business formation in the Republic of China as restrictions and requirements regarding foreign companies continue to be relaxed.

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CHINA
 

China is one of the biggest potential markets in the world. In terms of population the country exceeds the United States by four times. However, this over-simplified market analysis is too often the only basis for companies moving into China.

The reality is American companies continue to have mixed experiences in China. Some have been very profitable, while despite huge investments some of the most internationally sophisticated companies continue to lose money. The potential of the Chinese market is undeniable, but considering the vast majority of the population is rural farmers, the real size of the market is extremely limited for years to come. This said, the very real and exciting development regarding China, is its ascension into the World Trade Organization (WTO) in December of 2001. After all, China is the fastest growing economy in the world, and it is now the seventh largest trader.

Simply put, you can probably not find a greater divide than that of the western and eastern mindsets. To be successful in China, this tremendous gap must be carefully considered and bridged.

Fortune 1’s network and experience in China ensure your market is thoroughly investigated. We work with you to pre-qualify potential business partners, and craft agreements that assure you will be paid, and that minimize misunderstandings between the parties.

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