Another Leap for China

China is and will continue to be a major competitive threat to US companies, unless we wake up and mount a much more aggressive and smarter strategy to compete globally.

As Sino-brands raise their game and set their sights on overseas markets, Damian Reece assesses the threat to Western companies

Next time you buy a fridge, why not check out a Haier? Or what about replacing your Compaq personal computer with a Legend?

Instead of drinking a pint of the usual, why not try a bottle of Yanjiing. After all, you might need a stiff drink before splashing out on that Erdos cashmere cardigan for your loved one's birthday.

What, you might ask, are we blathering about? Well, all these consumer brands have one thing in common (apart from being unfamiliar to most of us). They are all Chinese. In fact these are just a few of the Sino-brands that have made it big in China and which experts now claim are set to conquer the Western world.

A new book, Brand Warriors China, highlights these leading Chinese brands. It says it is time for European and US companies to reassess what "Made in China" means. Chinese companies are no longer content to simply manufacture at astonishingly low cost for large overseas companies, who stamp their own labels on the finished goods.

This is sophistocated business strategy, in case you have not noticed. The Chinese not only have a serious production cost advantage and they are rapidly mounting the product quality curve, but they are also making significant market brand progress.

Look for more Chinese companies to acquire US companies and open operations here in the next three years. They will extend their production reach to all continents. It's not too early to set the stage for recruiting Chinese business investors. Remember that most foreign direct investment takes place through mergers and acquistions.

Read more here.