Examination of Consumer Markets When examining either the U.S. or Chinese markets at the present it is important to first take note of the impact the global outsourcing industry has had on both economies. Outsourcing is a way in which companies reduce operational expenses by transferring a particular division or aspect of the company to an international location that has cheaper labor, lower production and utility costs as well as having local government units that promote business through the use of special economic zones that have far lower or next to no taxation (seen in Qingdao region of China and the Subic bay area within the Philippines) (Brown, 2010). This is possible due to the way in which globalization has interconnected markets in such a way that methods of communication, financing and transportation have made transferring businesses and products from one global location to another faster, easier and above all affordable for companies. Outsourcing and its Effect on China It was due to this that a distinct trend in production outsourcing began in the U.S. during the late 1980s and accelerated during the late 1990s wherein more companies began outsourcing their manufacturing facilities to locations such as India and China (Brown, 2010). This is an important factor to take note of since as outsourcing within China grew so did the country’s economic, industrial and business infrastructure resulting in the creation of a communist nation with a capitalist based industrial economy (Brown, 2010). With certain factors such as technology processes and transfers occurring this enabled local Chinese entrepreneurs to adapt these technologies into their own businesses resulting in a subsequent boom in China’s manufacturing infrastructure enabling China to manufacture products that it otherwise would not have been able to before. It was due to this that a new Chinese upper class was formed out of the resulting economic progress that has continued until the present. Based on current statistical data from the Chinese Ministry of Statistics it is estimated that China is home to 35 million newly rich Chinese that possess what can be described as a veritable “hunger” for western clothing, products, food and accessories. Based on this information numerous international brands ranging from luxury goods to car makers considered the present Chinese market as a future primary market for their products and services. This is not surprising considering the sheer scale of import consumption within China as the newly rich continue to fuel China’s economy. The U.S. Consumer Market Today In comparison the U.S. consumer market today has not only stagnated but is apparently in recession as consumer spending is at an all time low while reliance on government aide programs is at an all time high (Consumers Not Buying, Manufacturing Slowing, 2011). The origin of the current problem can be connected to the U.S. housing crisis wherein banks lent consumers more money than they could afford to pay back with various investment companies repackaging the bad debt into what appeared to be viable investments yet when consumers failed to pay their mortgages this created a financial domino effect