Williams adds that companies that have been here six or more years have
bigger China margins than their average worldwide margins as they are able to
find better ways to manage their business in the China environment.
"Americans firmly believe that a good business must make a real profit," says
Bob Lamb, chief marketing officer of China Huatian Investment Co. US companies
had a cumulative investment of more than US$50 billion in China by the end of
2005.
But "real profit" is also reflected by other means, not only the cash raked
in; and Chinese factors help the global performance of American companies.
According to a Pricewaterhouse-Coopers survey which interviewed 65 senior
executives of large US manufacturing companies last year, about 36 per cent
indicated that manufacturing in China would be important to the profitable
growth of their company over the next three to five years.
"In the United States, some have suffered lost markets, damage to operating
capacity, and reduced profitability. But, these problems are being offset by
opportunities abroad, especially in China," says Jorge Milo, leader of
PricewaterhouseCoopers' US Industrial Manufacturing Practice.
China's burgeoning consumer market is providing a second wind for a lot of
American products, says Mei Xinyu, a researcher with the Chinese Academy of
International Trade and Economic Co-operation.
Boeing is a good example. In a bleak global airplane market, China ordered
120 planes from the company last year; and the Chinese delegation to the United
States, led by Vice-Premier Wu Yi, signed an agreement to buy 80 Boeing 737
planes last week.
Many American brands were drowning and looking for a lifeline - and China
came along, Mei says.
Coke and Big Macs
Of the world's 100 most valuable brands, 62 are American, according to
Interbrand, a consulting group that annually evaluates products.
"It is difficult to gauge the influence of American companies in China by
figures. But individual brands are performing well," says Hartmann from A. T.
Kearney.
The ubiquitous presence of massive Coca-Cola and Big Mac signs around the
country certainly reflect the impact American companies have in China.
A list of the Most Influential Multinationals in China of 2005, chosen via an
online survey poll, could be another sign.
The companies at the top include Amway, General Electric, Panasonic, Pepsi,
P&G and Siemens, with 11 based in the United States, four in Europe, two in
Japan, two in China and one in South Korea.
(For more biz stories, please visit Industry Updates)