China: Both Threat and Opportunity

With China's impressive growth and rapid modernization, many fear here in the U.S. and other countries that China will become the world's factory, sucking millions of jobs away from North America, Europe and Japan. This ignores China's growing appetite for imports, as well as exaggerating China's capacity to make everything for everybody. But it does mean changes in what different countries do to succeed in the world.

Despite fears of Chinese competition, the growth of China will also present enormous opportunities for the West. Our challenge is to advance our own capacity for high-value activities, rather than pursue the kind of protectionist whining that is now in full howl in the United States.

China represents both threats and opportunities to American companies and communities. Economic developers should look at China in this larger context as they give shape to local, state and national policies designed to address international trade and investment issues. I believe the Chinese will invest in the U.S.--initially through mergers and acquisitions--just as other nations like Japan and Korea have done in the past. Keep a balanced perspective on China and what it means. You just might find many of your companies siding against you, if you take the wrong position. All companies--large and small-must think globally to survive.

Go here to read a recent article in the Toronto Star that speaks to some of these issues.