Scaling China's Wall

THE GOLD RUSH IS ON. BUT INSTEAD OF GOING WEST, prospectors hoping to strike pay dirt are heading to the Far East. With an economy expanding 12% a year and an untapped market of 1 billion consumers, China once again is becoming a dream destination for companies from a host of Western countries, including the U.S., Germany, France and Sweden. After being repelled by an unfavorable business climate in the wake of the Tiananmen crackdown, U.S. firms are now among the most enthusiastic newcomers to Chinese shores. Last Tuesday AT&T signed a tentative agreement with China's State Planning Commission to supply cellular telephones, central-office switching equipment and computer networks. As part of the deal, AT&T will also build several factories to make telecommunications products as well as help train China's phoneworkers.

AT&T joins a Who's Who of U.S. companies entering or expanding in China. Among them are Motorola, McDonald's, Nike and Ford Motor. Coca-Cola greatly enhanced its Chinese presence by agreeing to build or upgrade 10 bottling plants in the interior of the country. And that's only a small start toward quenching a billion thirsts.