The real battlefield in the marketplace is between private Chinese companies and foreign invested companies, which are categorized as private companies. The playing field is unequal when you re on foreign turf. But that harkens back to a model, which I think is quickly disappearing, of foreign executives flying over to China trying to do a deal and foreign nationals bringing their families to China and being unhappy in that environment. That s not the business environment in China today. The total value of U.S. imports from Asia is not expected to change at all.
Chinese imports are lower priced than, say, comparable products from Korea or Thailand.
So, there may be an increase in the dollar value of Chinese imports into the U.S., but the total value of imports into the U.S. is not expected to change. In other words, China may have a larger share, and Malaysia may have a lesser share. As China moves up the food chain in terms of value added to products, that s where you re going to see the shift. What you need to do is segment the market. Yes, there are 1.3 billion people in China.