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Opportunities or Threats - China Post - WTO

A participant in the Women's Leadership Conference held in Kuala Lumpur last week (of which I was a speaker) complained that Malaysia is hard to compete with China now. She has seen a T-shirt quotation from China charging only USD 10 cents per T-shirt! She appears to take this as a threat to Malaysian businesses. What do you think? How can you turn the threat into opportunities?

China Facts & Figures
I've done some research on starting a business in China in the past few months and here are some interesting facts and figures that I've found:

  • China became official WTO member on 11 December, 2001

  • China's Internet users will grow from 30 million in 2001 to 125 million in 2006

  • China will become the largest e-Commerce market in Asia Pacific by 2006 with a value of USD 249 billion (IDC report)

  • Foreign companies may engage business in China using one of these forms of legal entities: Equity Joint Venture, (EJV) Wholly Foreign Owned Enterprise (WFOE), and Representative Office (RO)

Costs of Setting Up Office in China

  • Minimum paid up capital for EJV and WFOE is USD150,000

  • No minimum paid up capital requirement for RO

  • Expenses associated with business application and licensing is USD1,500 to USD2,000

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