Chinese exporters re-group

Meanwhile, compared with past decades, US importers have diversified their sources amid rising costs for Chinese goods and quality concerns.

Because of higher salaries, land use fees, and utility costs, some labor-intensive industries in China in recent years moved their plants to emerging economies in Southeast Asia. Meanwhile, building up brands has been an objective of local governments and companies to boost China's share of the global trade market and move up the ladder in the global industrial chain.

However, Orlins said that the government's efforts may backfire as the establishment of Chinese brands should be mainly the result of the companies' achievements. But the government can help with research and other services, he noted.

Rosen added that the business environment is very important and that China and the US have different standards for many things. He said that the biggest obstacle for China is learning what Western consumers take for granted and provide the products that consumers really need.

"The (economic) system, the history and the demands of local consumers are all pieces of a puzzle for China to enhance its products. The country's transition of its economic growth model will take some time," Rosen added.

Brands

Meanwhile, Chinese companies are also acquiring brands, which is the most efficient way to enhance the Made-in-China concept, said Rosen, adding that the country doesn't seem to have a system for learning, trying and failing.

Orlins added that buying brands, which is vertical integration, is just the first step needed to enhance Chinese products.

Chinese investors in the US are now buying brands in the auto parts, real estate and energy-efficiency sectors, compared with the exclusive investments seen in the energy sector three years ago, according to Orlins.

In the first seven months of the year, Chinese investment in the US jumped 278 percent year-on-year, much faster than China's overall outbound investment, which rose 20 percent year-on-year to $50.6 billion in the January-July period, according to the Ministry of Commerce.

China's domestic market is very important to the building of the Made-in China concept as safety concerns and quality scandals at home weaken the confidence of Western consumers, Rosen said.

"You should sell things to yourself first and then to the world," Rosen said. "A prosperous China means a better world."

Contact the writer at lijiabao@chinadaily.com.cn.

lijiabao@chinadaily.com.cn

(China Daily USA 09/17/2013 page1)