Overview
China is emerging as a critical issue for many, if not most of the industries within the Sloan Industry Studies Program. The sheer size of the potential market, availability of a workforce that is increasingly sophisticated, and supply chain issues associated with OEM development within China have affected many of our industries. In September 2004 Automotive News forecast 140 million vehicles on the road in China by 2020. An article in the Wall Street Journal on January 25, 2005 outlined scenarios in which the Chinese economy overtakes the U.S. economy by the middle of the century.
Chinese consumption will have significant effects on the worldwide economy, in terms of the challenges associated with serving a large and growing market, integrating a global organization into a rapidly developing economy, dealing domestically with competition from China, and the expectation of global OEMs that their domestic supply base will follow them into China. The last issue can be especially difficult for small suppliers who must develop global capabilities after years of viewing their markets in terms of North America or regions within the United States. Many of these firms are suddenly faced with decisions about market entry and the degree to which they may share intellectual property.
Maintained by webmaster@wpi.eduLast modified: September 13, 2007 14:46:15