The Opportunity in China

China is one of the world's great growth markets and is likely to be for many years to come.  With this rapid economic growth has come gradual reform of the economic structure.  The Chinese government is shifting away from its centrally planned economic system to a market economy.  China has encouraged foreign trade and investment, using investment in particular as a primary driver of economic growth.  And, with China 's ongoing implementation of WTO commitments, virtually all of China 's existing industries - and budding industries - will be open by year end 2006.

• Deregulation
  Economic reform and economic growth in China have been accomplished by the gradual deregulation of Chinese industries.  Industries once under tight governmental control are now free to enjoy economic prosperity.  Helped by foreign investment, Chinese entrepreneurs have demonstrated an impressive ability to build and grow companies that achieve both initial and sustainable success.
  
  
• Private Industry
  As a complement to foreign investment, the development of private industry in China will be a major driver of economic growth over time.  Spurred by the need to promote growth in a stagnant economy, the government loosened controls on the private sector, and private companies in real estate, telecommunications, education, finance and other areas blossomed.  Now, private industry has emerged as one of the major drivers of the Chinese economy and investment in China.
  
  
• Regions
  China's regional economic growth follows a meandering path.  From the vast interior, to the coastal plain, to the mountainous region, not all of China is developing at the same rate.  Factors such as business-friendly local governments, educational institutions, and local financial resources affect the success and failures of capital investments.  The key to a successful venture in China is understanding the economic terrain and investing accordingly.
  
  
• Industries
  Sierra Asia Partners focus on creating strategies and developing investment opportunities in industries that have benefited from China's implementation of the WTO, ranging from pharmaceuticals to wood products - with a specialization in media, entertainment, information technology, financial service, and manufacturing. Sierra Asia also looks for investment opportunities in sectors that are posed for rapid growth - ones that are de-regulating and opening up.  Such industries and sectors offer enormous first and second-tier opportunities for investment.