China: The New Normal

Who could have imagined China would have emerged as the world’s fastest-growing and a very competive global player? Over the last five to eight years, demographic trends have pushed up Chinese wages faster than productivity gains, forcing managers to reevaluate their Asian Business Strategies. If you are experiencing challenges, chances are you need more than legal and financial advisors. You need hands-on operational support.

CHANGING CHINA: THE NEW NORMAL

  • Rapidly Rising Labor Costs
  • Strengthening Exchange Rates
  • Slow Global Export Markets
  • High Turnover of Employees
  • Increase Chinese Competition

The Chinese economic model from the early 1980s was based on China providing a large, relatively well-trained and disciplined work force with competitive wages. As a result, many Western companies began establishing manufacturing facilities in China to provide products for both the export and domestic Chinese markets.

Eventually Chinese GDP began to slow. To maintain stability, the government began stimulating the economy with massive infrastructure and real estate projects to keep full employment. These actions have had an inflationary effect, coupled with governments mandated across-the-board salary increases to be financed by the global multinational companies.

This shift had a significant impact on U.S. MNCs competing in China. For many Western companies, China represents a significant market and competing for market share is critical to their long-term growth strategy.

For those companies in, or entering China, EWA has significant experience and expertise in assisting with:

  • Operational & Business Assessment, Performance Improvement, Rationalization & Restructuring
  • Mergers & Acquisitions
  • Crisis Management
  • Operational Benchmarking & Market Research & Business/Operational Strategies
  • Operational Implementation & Management

Contact us for solutions tailored to your specific need or challenge.

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