Written by Ron Cune, the business development manager for 1421 Consulting Group in the USA, has comprised the USA sectors with high potential in China.

Current top-selling sectors

Maybe 75% of the articles that we touch on daily basis find their origin in China. For several decades China has made an impressive industrial growth. Recent years focus from quantity, has shifted to quality.

Many Western entrepreneurs have a dream. “What if they could sell just 1 of their products to every Chinese person.” They get caught in the idea that it is easy to sell to China and that all Chinese consumers look alike.  Like Europe and USA, China has its own market protections and changes of rules and regulations can happen fast and unexpectedly. Entering the Chinese market  can be risky when ill prepared.

So what would a country as China need from the rest of the world? From the USA in particular? Here is the top of 2014:

1. Oil seed:                                          $15.3 billion
2. Aircraft, spacecraft:                         $13.9 billion
3. Vehicles:                                          $13.2 billion
4. Machines, engines, pumps:            $12.5 billion
5. Computers and Electronics             $12 billion
6. Medical, technical equipment:         $7.5 billion
7. Plastics:                                           $5.1 billion
8. Woodpulp:                                       $3.4 billion
9. Copper:                                           $2.9 billion
10. Wood:                                              $2.7 billion

source: http://www.worldsrichestcountries.com/top_us_exports.html

Soybeans are the largest export commodity,  yet more complex products like vehicles & airplanes, engineering equipment and electronics are on the move.

Growth sectors for USA SME companies

Machines and engines

The USA is the world’s largest market for machinery, as well as the third-largest supplier. Technological innovation has been the key to stay competitive into this market. And many universities are engaged in Research and Development of this sector.

The USA is strong in:
– Agricultural and Food Machinery (used to grow, process, package, transport, and distribute food and beverages)
– Construction Machinery (Construction and mining equipment)
– Manufacturing Machinery (Automotive, aerospace and medical devices for cutting, stamping and shaping materials)

In the recent couple of years, Chinese management has become more open towards the concept of using machinery instead of hand-labour. Where previously, hand labour was considered cheaper, increased production, standardization needs and safety regulations moved factories in using more advanced equipment. From Chinese ethical perspective, the argument of an ‘iron rice bowl’ should be kept in mind. Having sales arguments accompanied with reasons why machinery is beneficial for blue collar workers, will be a plus.

Computers and Electronics

Microsoft, Apple, Dell and Motorola are a couple of strong USA brands with a proven history of success in China. For SME’s we, again, should look at the innovative part of hi-tech and computer science. Equipment and gadgets that try to make our lives more safe and convenient.

• Smart Household tools (integrated energy control, digital temperature measurer)
• Industrial (3-d scanner, testing equipment, filtering systems, production analyses, logistical software)
• Computer innovation
• Automotive innovation

The USA is particular strong in innovation because of the suitable test market (big geographical area with 1 common language). Government regulations are more lose and innovations can be quicker implemented into the market. The educational system in the USA provides more creative and expressive experts. Products from the USA are automatically considered of ‘better quality’ in China. Which, of course, isn’t necessarily true.