Focusing on being replaced with US for being the second largest economy across the globe by the year 2020, China has been providing a lucrative background context to the investors for putting their resources and investing within a universal scenario. This is in the case where there is high level of unpredictability within the economic market of a number of nations such as the US and Europe. As it is one of the largest nations with a huge geographical and political platform to almost 1.3 billion populations by offering some of the most appropriate avenues at a price that is highly competitive. This is in the case of infrastructure, resources or labor. Therefore, it becomes highly critical and highly important for the companies from the global industry to reconsider their operations and policies for entering the market of China in a successful manner.
However, in contradiction to this statement, the economic market of China has not been representing a picture or view of unity as it is still highly complex, and in nature it is non-hierarchical with respect to the facts of provincial economy more in its position than a centralized and uniform forum. In addition to this, the policies formulated and regulated by the government have the tendency of wearing an increased monopolistic and nationalistic tone of voice. However, the fact cannot be denied that as China has been included in the WTO since the year 2001, there has been a certain level of relaxation within the policies of trade and has been allowing larger degree of flexibility that has allowed the global players for roping within their capital for a partnership with long term profitability.
Certain pitfalls have been identified in consideration with the failed marketing strategy of the companies trying to enter the market of China. One of the major pitfalls is related to the low level of cost for global sourcing. This is an issue that drives a large number of companies for establishing lower level of costs involved in operations of manufacturing. However, if the development of strategy is done on the basis of cost only, companies end up facing a risk related to a strong upswing in the currency of China that is Yuan.