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No China Crisis For U.S. Business; But poor transportation and intellectual property theft remain obstacles.(MANAGING FOR SUCCESS)
Byline: PATRICK SEITZ
When TCL-Thomson Electronics began operations Thursday, it overnight became the world's largest television maker. It also marked a new stage in the opening of China's market to Western companies.
The new entity, which combines the TV and DVD hardware businesses of China's TCL and France-based Thomson, is China's first true global company.
"I see it as the first of probably many Chinese-based multinationals," said Al Arras, senior executive vice president at Thomson.
The climate for foreign businesses operating in China has improved greatly since China joined the World Trade Organization in December 2001.
But obstacles still exist, such as a poor transportation infrastructure and rampant intellectual property theft, says Joe O'Mara, a partner at consultant KPMG International.
One big change for the better has been to permit foreign companies to do business in China without having to pair up with a local partner, he says.
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