Opportunities & Challenges in the China Market James Chan, Ph.D., President Asia Marketing and Management www.AsiaMarketingManagement.com October 22, 2008 IFAI Expo, Charlotte Convention Center Charlotte, NC

Three Phases of Trade with China (in billions of US Dollars) (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) Source: National Bureau of Statistics of China

China’s Share of World Scientific Literature: 1979-2007 (<1% in 1981 to 9% in 2007) National Science Indicators, Christopher King, Thomson Reuters.

Chinese R&D Centers China graduated 19 Ph. D Chinese R&D Centers China graduated 19 Ph.D.’s in 1983; in 2007, it graduated 50,000 (same as in the U.S.) Source: National Bureau of Statistics of China

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

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