chapter  5
26 Pages

China

President Richard M. Nixon's historic trip to the People's Republic of China (PRC) in 1972 established a relationship between the United States of America (USA) and the PRC when President Nixon signed the Shanghai Communiqué. This treaty proclaimed China's willingness to accept foreign investment and its movement toward becoming a more "open door" nation. With the normalization of full diplomatic relations between the USA and the PRC in 1978, USA investments in the PRC have gained momentum along with the interest of world marketers in the consumer potential of the PRC. Today there is intense interest in the potential of the PRC market among USA consumer goods manufacturers of both consumer durables and nondurables. USA consumer goods companies are starting to produce their products for and in China.