Compared to like products produced in China, American products are generally perceived as high quality with a premium price especially with freight and duty added. However, the Chinese market will pay these prices to get the quality where local products are deemed to be of a significantly lesser quality. There is an underlying desire for high quality products which minimize service problems. It is our opinion that China as a whole is moving towards higher quality products and is willing to pay for them. This is a solid opportunity for both small and large US companies.
Many companies are afraid to try the Chinese market because of the perceived barriers to overcome.
Good trade relations at top levels help minimize these barriers and encourage companies to jump in. The markets are huge and ready for American products. It appears to us now that Ambassador Barshefsky has hammered out a good initial position towards an expansive bilateral market access agreement. Again, we would not have gotten this far in penetrating the market without solid personal relationships in China. We cannot afford to have our efforts to establish these relationships squander this even in the harsh light of the accidental bombing of the Chinese Embassy in Yugoslavia and the Cox report.