Effectively Accessing Chinese Consumers Through Distribution Relationships

A new generation of U.S. companies has recently begun to take advantage of the Chinese consumers' growing spending power by selling products directly into China. Despite the risks and challenges that foreign companies face in China, growth projections are too enticing to ignore. The Chinese retail market has grown more than 14% over the last two years, and Chinese consumers increasingly desire to buy goods and services offered by foreign companies.

While direct investments by U.S. companies into China were often the preferred vehicle for U.S. manufacturers seeking to establish production operations or partnerships in China in the 1990s and 2000s, U.S. companies are considering alternative contractual relationships.