Trade Variables As discussed above, China is a world leader in national export and import levels. In 2013, China exported $2.21 trillion (2013 estimate) worth of goods (16.5% of GDP), the highest in the world. Its main exports include machinery and transportation equipment. In imports, China is the third largest in the world, with $1.772 trillion (13.3% of GDP) (CIA, The World Factbook, 2014). Their largest imports are machinery and transport equipment (EIU, 2014). By opening the country to international businesses, raising the foreign investment ceiling in the “permitted category” of the Catalog for the Guidance of Foreign Investment Industries, and adding 173 industries to this list, China has stimulated $1.344 trillion in foreign direct investment. This catalog presents sectors of the economy where foreign investment is “encouraged,” “restricted,” and “prohibited” (Department of State. The Office of Website Management, 2013). China's great success has also been propagated by its immense infrastructure and the inclusion of domestic enterprises in the antimonopoly law (Davies, 2012). In addition to increasing China's attractiveness as an investment location, these measures have made it easier for foreign companies to expand within the country. In contrast to these trade-friendly arrangements, China has a number of techniques to prevent foreign expansion. According to the World Trade Organization's Trade Policy Review: China, the nation has a 9.5% tariff rate and "non-tariff border measures" such as import and export licenses. Unfortunately, the Chinese government limits the level of trade-related information regarding regulations and standards available to the public (WTO, Trade Policy Review: China, 2012). A majo...... middle of paper ......ro to develop intercultural literacy. This skill is critical to forming the relationships needed to gain access to guanxi networks. With this network, expansion into different regions of China is feasible. Conclusion By expanding into China, Lucero Olive Oil can tap into a growing industry with a large potential consumer base. Since China has no significant domestic manufacturer and no single company has gained substantial first-mover advantages, the market is open to aggressive expansion. Keeping legal and political risks in mind, Lucero must establish extensive social, economic and legal connections in China to gain access to the diverse market and achieve success. Overall, success in China can take Lucero out of the domestic realm and onto the international stage. This can be done with in-depth analysis and cultural understanding.