" China has become such a dominant force in the global economy that businesses may be at risk if they don't engage it in some way, whether accessing its' domestic markets or to serve as an export base".

The promise of low cost labour is the primary reason Western Companies look to China as a sourcing base. However, with new graduates flooding the market many foreign companies are also looking to tap into the highly skilled workforce. China is now moving towards becoming a base for the global knowledge industry where both the government and Chinese enterprises are placing an even greater emphasis on R&D.

With a 9.5% annual growth rate, low labour cost, a government eager to facilitate foreign investment and an ever-changing infrastructure, China is poised to consolidate its dominance in the global market.
 
If your company has never looked at China as a business option before now may be the time to look. If you have looked before now may be the time to look again, since the manufacturing dynamics in China change quickly. Companies that decided that their existing manufacturing operations are best left untouched are now re-examining their upstream supply chains and confronting their suppliers with price quotes from Chinese producers.

Those that do not play now automatically put themselves at a disadvantage as the Chinese say “it is the flowing water that stays a fresh” (liushui bu fu).