Chapter 19 guide

★ Like many joint ventures, the marriage between FedEx and Sinotrans has brought great hope to people. ★With the advancement of China's reform tide, the Chinese government is willing to cooperate with foreign companies, which shows that China's needs are changing. ★Even without the entry of foreign capital, China will be like other emerging countries. The gradually emerging market economy cannot develop on the road of modernization due to lack of funds. ★The business expansion of foreign enterprises in mainland China has had a profound impact.They provide Chinese enterprises with a development model of modern industrial economy that can be emulated, and they have played a certain role in promoting China's construction and improvement of infrastructure.

There is no doubt that the Chinese market is a huge attraction for Western companies.And China can obtain capital and skills from Western companies at almost no cost.This combination is entirely conducive to the development of multinational corporations and the formation of "Middle America".As the author said, the changes in China were not brought about by FedEx, but FedEx is also one of the factors driving China's changes. As CEO of FedEx, Fred Smith presented his views to a U.S. House of Representatives committee in 1998.Smith's statement was clear and unambiguous.In the past 15 years or so, he established a branch of FedEx in China, and today his investment in China for many years has begun to pay off.With each passing year, some U.S. officials and lobbyists have worked hard to block economic ties with China, waving small flags of protest and creating tension between the two countries.In response to this situation, Smith and his colleagues strive to protect their own business interests every year, while explaining to the US government the importance of maintaining and deepening economic relations with China.

After making a brief statement, Smith cut to the chase. He said: "The normalization of trade relations between the US government and China is not only in the interests of US companies, but also conducive to the development of the US economy. It is very dangerous to politicize economic issues. For the U.S., an abnormal economic relationship with China will cost the U.S. $8 billion in trade and hundreds of thousands of jobs, and put billions of dollars of investment in China at risk. If the U.S. does not If we maintain a normal trade relationship with China, then the deteriorating bilateral relationship will cause the United States to lose China, a market with great potential in the future."

Smith also said: "People who oppose the normalization of trade with China hope that by giving China different treatment to force social transformation, this idea is too simple and wrong. There are many countries in the world that have maintained relations with China. Trade relations, this is the only way for China to actively cooperate. Better economic conditions help the social environment and political atmosphere continue to improve. FedEx and other US companies are working hard on this road. FedEx It has been serving China since 1984 and established a direct flight business in China in 1996. The company has practiced in the Chinese market for many years and has established close ties with Chinese partners. We deal with countless Chinese people every day, Because our company has market advantages in terms of business operations, management practices, and work efficiency. We are proud of the performance we have achieved in China, and we firmly believe that business practices in China are not only beneficial to FedEx, but also to the United States. It's also beneficial."

Next, Smith continued to elaborate on China's accession to the World Trade Organization, which has aroused great controversy in Washington, and the two sides of the debate have gone beyond the boundaries of the two parties.Smith believes that the Chinese market not only has huge potential, but also maintains close trade relations between China and the United States, which will benefit the United States obviously.The practice of FedEx led by Smith in China is the most powerful proof.As a leader of American business, Smith sees positive prospects in the changing relationship between the United States and China.He said with enthusiasm that more business activities in China will help Sino-US cooperation develop in a better direction.