What Are The Risks Of Conducting Business Operations In China

Since the start of the 20th century, with the fall of the Qing dynasty, when China was in shambles with no industry, a corrupt government and no international presence, all the way up until today, where China has evolved into one of the strongest internationally recognized countries with a highly globalized market, the relationship between the Chinese people and its government has been debated on whether or not Chinese society is one ruled and dominated by a central government or a society where social change occurred because of bottom-up forces leading to a government for the people. China, since 1949, has been a country, which has been run by a single party state, known as the CCP (Chinese Communist Party). The CCP is organized under the basis of a central, unchallenged party governing the people by the means of communism. Throughout the past century, the CCP has dictated and maintained a rule over the livelihood of its people by monopolizing Chinese politics and penalizing those who opposed it, through central command planning and on the other spectrum, radical economic reforms at the end of the 20th century in the interest of keeping the CCP in power.

On the other hand, knowledge of the political and legal environment of China will be fundamental. Information on their laws and regulations, such as foreign trade policies, product standards, tax laws and requirements, trade barriers, labor laws, etc. are extremely important when assessing China as a potential market for our company. Finally, a thorough research on China’s market conditions, such as potential competitors, market trends, market opportunities and threats, potential risks, unique market characteristics, etc. will be necessary to obtained a complete evaluation of the country before entering the market.

Entering an untapped international market can strengthen a business tremendously—but what if the costs outweigh the benefits for the market itself? China has long been an important player on the global stage, but recent advances in manufacturing, natural resources, and energy production have catapulted the expansive country to the forefront of international trade. Currently the world’s fastest growing major economy, China is set to eclipse the United States as the world’s largest economy by 2016. Among various domestic and international plays, one of China’s most fascinating uses of its

In 2013, XI Jinping was elected as President by the National People’s Congress. The National People’s Congress takes the role of the United States’ Electoral College. China has one primary political party: Chinese Communist Party (CCP). Similar to the United States, in addition to its executive branch, China has a legislative branch as well as a judicial branch. “Its legal system is influenced by former Soviet and continental European civil law systems” (CIA World Factbook, 2015).

The People’s Republic of China is a socialist republic which it’s rule by one single party and they are the Communist party of China.

Internet censorship and the requirement of self-censorship not only harm the economy inside China, but also are negatively affecting China in aspects of international commercial trade, even as globalization becomes the trend of today’s world. Chinese Internet censorship is applied to both directions; not only blocks Chinese Internet users’ access to certain foreign websites, but also prevents foreigners from knowing the truth about China through refusal of releasing reliable information. So when foreign companies want to enter the Chinese market, they face a serious question: “How do you assess an investment opportunity if no reliable information about social tensions, corruption or

Currently, the ruler of this unstable government is Xi Jinping since 2012 and since has proven to be different than the rest. Of course, corruption plagues almost every politician yet this president is different in many ways. Going along with this, China is mainly known for their production of “...crude oil ($220.7 billion), iron ore ($95.6 billion), plastics in primary forms ($46.2 billion), copper and copper alloys ($38.6 billion), and soybeans ($35 billion). China's major trading partners were the European Union, ASEAN, Japan, South Korea, and the United States” (Imports to China, n.d.). They gain a lot of wealth from the production of these things and also from overworking and underpaying their citizens, still this is a different

My family originated from China. China is located in Southeast Asia, bordering India, Russia, Afghanistan, and other countries. China is the third largest country after Canada and Russia. However, China is the world 's most populated country with the population of 1.357 billion. The official language spoken in Mainland China is Mandarin. However, there are seven main dialects in China including Mandarin, Cantonese, Hakka, Wu, Min, Xiang, and Gan.

“The Party: The Secret World Of China’s Communist Rulers,” by Richard McGregor is a book which provides detailed insight into the Communist Party of China, revealing many of the secret underpinnings of how the party is run, and explores the question of how they have continued to stay in power for so long. While other strong socialist powers, such as the Soviet Union and Eastern Germany, fell at the end of the 20th century, the CPC was able to stay in control and ultimately come out of that period even stronger. In McGregor’s own words “the party picked itself up off the ground, reconstituted its armor and reinforced its flank. Somehow, it has outlasted, outsmarted, outperformed, or simply outlawed its critics, flummoxing the pundits who have predicted its demise at numerous junctures.” Instead of letting its own ideologies weaken its power, the CPC has continually adapted and transformed its policies and goals in order to maintain their stronghold over the nation. Through his impressive list of Chinese scholars and political contacts, McGregor is able to lay out the fundamental workings inside the Chinese government and the impressive actions they’ve taken to remain such a powerful organization.

China is the largest market in the world, and probably the hardest business environment. This narrative reflex China’s immense diversity, complexity, and its enormous competitive intensity is unrivalled versus the world.

This paper presents the results of the authors’ detailed research into competition between multinationals and local Chinese companies in 10 industries over the past five years. They conclude that local companies are now threatening multinationals’ plans to conquer the China market. They analyse this new competitive game in terms of a dynamic battle of competencies. Multinationals start off with better industry-specific technology and know-how, and a higher level of competence in key functions like marketing and financial management. Chinese companies enjoy a better understanding of the local market, lower

In China, corruption is so apparent that often people are disincentivized to owning businesses because permits and consultants cost too much and require bribes. Yet, bribes can cost the economy big money because essentially the corrupt businessmen are taking the money away from public services (111). The issues coming up in the future are that the governments that are corrupt might have negative impacts on other global economies and spread the norm of corruption. Yet, both countries do show the will to “purify the Party” which includes newly implemented rules against gluttony, adultery, and even playing golf under the leadership of Wang Qishan (113). In China a bigger issue is also the fact that the public is becoming increasingly involved in corruption scandals. Officials worry people will get carried away with excessive accusations (115). More issues stem from the type of political system that China has; they employ a nominal legal system that runs at the discretion of the Party leadership so this means that whoever is in power can change the entire political ideals. In India, they are based on a historical British political system with anticorruption laws but these laws are often not enforced. Yet, even when they are enforced, trials in case can last for up to a decade (116). In India, they are making moves to help out their corruption issues. They implemented the Aadhaar program

China, or People’s Republic of China, is a sovereign state located in East Asia. China spans 9.6 million kilometers making it the second largest country by land, only surpassed by Russia with 17.8 million kilometers. China is the most populated country on the planet with 1.35 billion people. Rich with history and tradition that goes back to ancient civilization, China has risen and fallen in power many times over. Within the last 30 years, China has become a dominant global leader once again and this has surprised many analysts due to their rapid success.

China has a population more than four times the size of the U.S., and is the most populated country in the world with a staggering 1,403,500,365 people. That is almost one seventh of the entire population of the world. China has had to implement laws that make it so families get taxed more on every child that they have after their first, to try and get their population down. The population may be much higher than the U.S., however, the median house income is much lower at just over $10,000. About half of the population works in manufacturing, and the other half works in the service industry.

Some say that the Chinese government allows tolerable corruption to motivate officials so that they do not have to reward them in other materialistic ways that are incongruent to the benevolent image of the party (Fan, Grossman, 2000). Anti-corruption activities only target on exposing and punishing smaller cases to appease the masses while corruption at the higher levels is often left unscathed (Pei, 2007).