Competition is rising strongly in China and companies wanting to play a big role in the country should adapt their strategies.

According to a report by AT Kearney, the “primary purpose” for investing in the country should change from « making goods for export » to « boosting domestic sales ».

The automotive sector is a good example of this transition as China has overtaken the US to become the world’s premier car market. Brands such as BMW, Mercedes and Audi have exploited this opportunity by launching many new models through local joint ventures. General Motors has recently upgraded its research centre in Shanghai as it seeks to build bespoke vehicles for Chinese drivers. [Read more →]