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China Conquers European Market

This week Geneva was graced with the sight of 250 Chinese and European business leaders. The main topic of the discussion was the expansion of the Chinese industries in Europe. Lately, Chinese executives and major shareholders have demonstrated high levels of success and the determination to increase their influence on Europe. It seems like China has all the right cards: modern technology, strong infrastructure and well developed distribution channels. China is open to the possibilities of purchasing new popular brands and has all the needed determination to penetrate the European market.

However, some things might prove to be a problem for China. If the Chinese CEO`s and shareholders don`t want to repeat the same mistakes that Japan has made in the 80-s they will need to reconsider a number of things. Chinese executives are aware of the fact that when the go out into the European market they must take the European culture and business related customs in consideration. No matter how determined China is to increase its shares and no matter how welcoming the European market seems to be, Chinese still need to carefully survey the market before making any major mistakes that will serve as significant setbacks.

Then, there is another problem that Europe is well aware off, however, it still doesn`t have the best solution for it. The cheap labor question. When you have such a valuable asset right under your nose you`ll probably think twice about hiring the local workers for the European minimum wage, which in comparison to China is not that minimal. Thus, although there are no major disagreements regarding the Chinese break through into the European market, some problems need to be dealt with.