China is emerging as the leader in export opportunities for American manufacturers.

1. An Update on
Economic &
Manufacturing Trend in
Asia
March 7, 2013
Ted Hong
Goldin Peiser & Peiser,
LLP

2. Asian Economy Still the
Leading Growth Section of the World
GDP Growth %
Country 2013 2012
USA 2.0 1.6
China 9.4 7.8
Indonesia 6.7 6.0
Taiwan 4.2 3.7
Japan 1.7 0.3

3. China -
New Guys in Town
Xi
Xi Jinping, President
Li Keqiang,
Premier
Top Agenda:
1. Curb corruption
2. Manage sustainable growth
3. Develop domestic markets
4. Continue to build infrastructure and move manufacturing
westward

4. Export Opportunities
to Emerging Asia
– Natural Resources
All big four oil companies in China are buying overseas oil resources via acquisitions
or joint venture, including the recent CNOOC $15.1 billion purchase of Canada's
Nexen energy group.
– Luxury Goods
The forecasts in 2010 and 2011 predicted that China might exceed Japan to become
the world’s biggest market for high-end consumer goods by 2015 with 25% of world
share. The reality is that China is likely the world No. 1 luxury goods market in 2012
with 27% share.
– Brand Name Products
Even though most are manfactured China, Chinese consumers are crazy about
major name brand American goods.
– Leisure Industries
U. S. tourism had a $4.4 billion trade surplus in 2011 in travel and tourism
spending with China

5. Malls in Shenzhen
Population: In1980 (as a small fishing village) 300,000, in 2013 around 14 million
• More than 20 luxury malls (most recently built was 750,000 sq. ft.)
• Three malls within a 800-meter pedestrian-only district
• All have high-end luxury brand stores (Louis Vuitton, Gucci,
Cartier, etc.)

6. Jakarta, Indonesia
Another Booming Country
Luxury Mall in Jakarta

7. U. S. Tourism –
An Export Opportunity in Your
Backyard
• In 2011, Chinese tourists spent $73 billion worldwide
• Average Chinese tourist spent $6,000 per trip, the
highest of tourist from any country
• The Commerce Department expects annual increase in
the number of Chinese tourists to exceed 45%
• Most Chinese tourists buy plenty of brand name
products, such as Polo Ralph Lauren, Tommy Hilfiger,
Reebok, Gap, even though these products may be
made in China

8. One of the Largest
Export Retailers in California

9. Domestic Opportunities
for Exports
Tour groups with well established markets in most attractive tour
destinations
A Good Example
1. 70 motor coaches and shuttle buses
2. Charter & sightseeing tours
3. Pacific coast

10. How to Approach
Foreign Markets
1. Guanxi – Connection – A myth that many westerners take to the heart.
The reality is that it is not much different from the U. S. business culture. Connection
gets you to the door and business strength and merit gets you the business.
2. Understand the local business practices via a partner or advisor who is versed with an
understanding of both business environments and culture there.
3. Get through the communication gap – The Number One handicap working with a
foreign partner – Lost in translation is very common occurrence.
4. Respect their culture but don’t have to follow blindly - Business people in most
countries respect and enjoy diversified cultures .

11. Questions?
Email or call:
Ted Hong, Partner
Goldin Peiser & Peiser, LLP
THong@GPPcpa.com
214.635.2533
www.GPPcpa.com
http://Manufacturing.GPPcpa.com/