Sun, Mar 02, 2003 - Page 11 News List

China, US are partners, rivals

TRADE AND INVESTMENT While the lure of the vast market potential and low labor cost are seducing many Americans, big structural changes are hurting workers

By Daniel Altman  /  NY TIMES NEWS SERVICE , NEW YORK

Motorola and Mattel, like many other American companies, are looking to China's consumer market, as well as its production base, as potential help for the bottom line. China's entry into the World Trade Organization 14 months ago coincided with the economic downturn in the US, causing even the biggest companies to look abroad for profits.

"The US auto manufacturers had a fantastic year in China, and a relatively lackluster year elsewhere in terms of profitability," Laudicina of AT Kearney said.

Motorola sees China as a profit leader. "China remains a critical part of our global sales and sourcing operations," said Jennifer Wey-rauch, a spokeswoman for Motorola. "As of 2001, China was 13 percent of Motorola's overall sales."

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