U.S. Companies Boosting Presence In China Surrounding Olympics

Companies Hoping To Use '08 Olympics As Groundwork For Future Deals

There are "scores of U.S. companies" looking to do Olympic-related business in Beijing around the '08 Games, "hoping to lay the groundwork for future deals" in China, according to USA TODAY's Edward Iwata in a Money section Cover Story.  The companies "all want a slice of the $200[B] China is projected to spend through next year on sports venues, office and residential buildings, transportation, tourism, legal and financial services and other Olympics-related business in its cities." While most of the Olympics contracts have gone to Chinese businesses, U.S. companies are "making a strong showing," including Connecticut-based Otis Elevator, the world's top elevator maker which has landed 25 Olympic-related deals worth $100M.  Hyatt and JW Marriott are opening hotels in Beijing, and Caterpillar equipment was used to build the Olympic Stadium, the swimming venue and the marathon course. Additionally, U.S.-based companies Visa, McDonald's, Coca-Cola, GE and other multinationals are paying a combined 1.9B to BOCOG and the IOC to be partners, sponsors and licensees.  Investment firm Group M expects ad spending in China to rise 29% to $31B in '08, and Johnson & Johnson and adidas are among the companies "using the Internet, TV, radio, outdoor and community and sporting events" to advertise (USA TODAY, 11/15).