ABSTRACT
This chapter explores the centralized Chinese distribution system prior to economic reform, the changes made up to the present moment, and anticipated future trends with the aim of providing useful insights for prospective foreign investors in China. Marketing has been defined as a human activity directed at satisfying needs and wants through exchange processes. Since 1979, then, China has gradually moved from a centrally planned, product-based economy to a more market-oriented, highly decentralized economy. The trading and distribution of goods in China are no longer under the exclusive control of the Ministry of Commerce. Private individuals, collectives, producers and other government units can all buy and sell freely. The pricing of commodities, except a small number that are still subject to planned allocation, is no longer under state control. Therefore it is natural for wholesalers and retailers to seek products with higher margins and greater market potential.
