Innovation may well turn out to be China's next important advantage

For the last 120 years, customer preferences of Americans have largely dictated the taste and looks of the chocolates and sweets made by Hershey Co of Pennsylvania, the largest producer of quality chocolate in North America. But as Hershey sets up a new innovation center in Asia, there are early indications that Chinese preferences will soon have a say in the final product mixture.

The innovation center in Shanghai is not only expected to help Hershey quickly develop, test and launch new products suited for customers in China and Asia, but also for the rest of the world, say company officials. Yuan Qingbin, head of the center, says it is only a matter of time before Chinese preferences will define the future taste and style of Hershey chocolates and sweets.