Post WTO China: priorities for smaller firms in a turbulent market

Abstract

The goal of this paper is to evaluate the strategic priorities for small and medium‐size U.S. firms in post WTO China. Within this context the objectives are several fold including: The impact of the World Trade Organization as an agent of globalization, problems of market entry, risk assessment, and the priorities of internal firm reorganization. The analysis shows that smaller firms can succeed. But it is exceptionally difficult to do business in China for smaller firms. It is also true that larger manufacturing firms will do better. Other issues examined in relation to risk assessment include financing, corruption, legal guidelines, and cultural concerns. This research methodology is based on a continuing series of on‐site structured interviews with key influencers in Shanghai, Beijing, Hong Kong, and Singapore from 1988 to the summer of 2002 including a recent 18 month research leave in the Far East.