GFS, exports from the USA to China that I see are a combination of raw materials (pulp, scrap, corrugated, resin, chemicals) some consumer goods (for expats in the larger cities) and some hi-tech equipment and capital goods. Aircraft are another biggie.
Most of US "exports" to China are transfers of knowledge and technology through joint ventures, consulting, and financing, IMO.
When GE Power signs contracts to build and run several co-generation plants, much of the hi-tech equipment comes from the US. The brick, mortar, and construction is done there. GE runs the plants and shares a portion of the profits. GE Capital Credit may provide some financing and a US brokerage house may float the bonds that pay for the Chinese portion of the venture. That's how many of our exports work. Many are quite intangible.
China does not want to import anything that they can learn to make themselves. Because of their large market, they can leverage that to force companies to enter the market under terms that would seem unreasonable anywhere else.
If you want to sell silicone implants in China, be prepared to open a plant there (that should be a huge market in about 15-years).
One exception is Pringles potato chips. They're shipped direct from the USA and are selling well in the big cities.
Oh, I forgot about Franchise fees. KFC is huge there, and McDonalds is getting bigger too. I once went to a Mickie D's there that had 100 people working behind the counter and in the restaurant. They were serving about 80-customers at a time (14-cashiers lined up 5-deep each). They took orders from people as they stood in line to speed the process. They were fast. |
