The pure capitalist tends to drool a bit at the mere mention of a captive market. The opportunity to sell into a marketplace that has only a few favored suppliers is a dream come true. In most instances, captive markets are few and far in-between, but when they do show up, it’s an opportunity to take advantage.

To suggest China as a captive market, hinged on knowing the right people with the right permits, may or may not be a stretch. It is, however, a process/tradition that is an important part of doing business in China. Finding a Chinese company that has a solid position within the Chinese business infrastructure is one such opportunity where an investor may be able to do a little drooling, even when the rest of the world is looking for a solid footing.

Gulf Resources Inc., a bromine/specialty chemicals manufacturing company, works to develop and market