Mid-sized American manufacturers will find entering the much coveted Chinese market just became a lot easier with the launch of the American Merchandise Center (AMC).

Many of the products that find their way into U.S. retail stores feature the “Made in China” imprint. Most consumers don’t think twice about this and purchase the product because it is usually less expensive than other options.

In China, the trend is the reverse. Products that say “Made in U.S.A.” are almost always more expensive than locally made products, but the growing Chinese middle class covets these items because they have become symbols of status and wealth.

American products are so popular, in fact, that the Chinese are willing to buy things such as California wines unseen and untested for their weddings. They just want the distinction of having the product at the ceremony.

In the past, small-to-medium-sized manufacturers have been skeptical about doing business in China. Whether because of the language barrier or the numerous and somewhat confusing regulations that China’s central government strictly enforces, doing business in China has always been considered risky.

However, Schaumburg-based Bid8 is trying to change that image with the opening of the AMC.

The AMC is located in the Chinese commodities trading hub city of Yiwu. It is a part of the Chinese Commodities City (city meaning market in English), the largest market of consumer goods in the world. The 1.8-mile-long structure houses 26 million square-feet of showrooms and moves 400,000 products each day.

The CCC is more of an expo center that allows visiting representatives and dealers from all over the world to buy products in bulk rather than individually as in the traditional consumer shopping mall.

The AMC is the first of its kind in China. It will occupy 128,000 square-feet in the CCC and hold 188 permanent showrooms for U.S. manufacturers to display their American-made goods.

Officials at the merchandise center are targeting products from five industries: auto care products and related equipment, cosmetics, health care products, food and sports equipment.

Colin Wu, CEO of Bid8 (eight is a lucky number in Chinese culture), was approached by representatives from the CCC last November about the opportunity to dedicate a portion of the market to U.S.-based companies, and, more importantly, to American-made products.

Wu had the proper background to spearhead such a project. A Chinese national, he served for 15 years as a diplomat serving Illinois interests for the Chinese government. Following that position, he studied American history at Eastern Illinois University and theater management at the University of Illinois Springfield.

In 1994 Computerland selected Wu to start its operations in mainland China. He eventually formed his own firm that operated as a liaison between Chinese and American companies, collecting and distributing information for both parties.

Now Wu splits time between Yiwu and Schaumburg, where he coordinates with American manufacturers operating in the AMC and representatives finding potential companies to showcase goods.

“On a grand scale, we are trying to help solve the trade difficulty that exists right now between the U.S. and China,” said Wu.

Traditionally, there have been three reasons—cost, risk and cultural barriers—that have caused American companies to hesitate to travel and do business in China.

China has gotten a bad reputation because in the past many companies have had poor experiences with uninformed consulting firms, intellectual property has been stolen and replicas have been sold to undercut the American producer. Furthermore, said Wu, custom barriers enforced by the central government are often very difficult to navigate.

Wu doesn’t deny that these incidents have occurred in the past and it still is difficult to understand the government’s rules for foreign businesses, but he believes that the AMC addresses all these problems and makes the environment much more conducive for American companies to do business.

“It will essentially be like having another domestic customer for American companies,” said Wu. “We have been sanctioned by the central government and we have the clearance to take care of all of the licenses for the products in the showrooms.”

In China, a company cannot obtain just one license to do business, but must obtain a license for each product sold, no matter how similar. A wine producer must obtain a license for each vintage and blend. A company can’t just get a license for white zinfandel, but must obtain one for each year it was bottled.

The same goes for cosmetic companies. There is no blanket license for a mascara line. Each particular shade must be sanctioned. Each license will cost around $100.

American companies that showcase in the AMC won’t have to worry about this, as Bid8 representatives will handle all the paper work.

The cost of doing business has gone down as well. Companies must front the cost for sending samples to China and will be required to pay $30 a square-foot of occupied space each year.

The fear of not receiving payment in a timely manner has been dispelled as well.

“If a company makes a sale, we will front it the money in the U.S. through Bid8,” said Wu.

For companies that participate in the AMC are required to sign a two-year contract, an exclusive deal with the AMC during that time period, maintain their showrooms and guarantee that all products on display are manufactured in the U.S.

Currently, Wu has 40 companies operating in the AMC. When the Yiwu site is established and running, Wu hopes to introduce the idea to other cities in China. He is already in talks with numerous possible locations for other merchandise centers.

“American products are easily distinguished in the marketplace,’ said Wu. “We are right on target with our project. We want this to be very successful.”