detached from markets elsewhere in the world, and many companies have sunk in China because they failed to take into account consumer preference. Bureaucracy Overseas firms often struggle with laws and regulations in China, with 31% of 338 respondents in a recent business survey listing bureaucracy as their number one concern when expanding into the country. Most common complaints revolve around obtaining the required licenses and permits, with many respondents bemoaning the laborious processes. Governmental challenges Transparency of government procedure and corruption are chief concerns of companies moving into China, although as the new leadership is ushered in, this is likely to change. The citizens of China need to believe the government’s decisions serve their interests, and there is a growing risk that the Party leaders increasingly are viewed as clinging to power in order to enrich themselves. Standards and conformity assessment Rules stating how products are designed, manufactured, sold, used and disposed of exist in China which all products must comply with before entering the market. This can be a very foreign procedure to many companies, and can impact the appeal of the country. Intellectual property Intellectual property rights is an area that has been notoriously difficult in China, although recent reports suggest this is an area that is improving the most. Gary Locke, America's ambassador to China, recently said that every foreign “for company calling for stronger IP protection, there are more Chinese companies calling for the same,” suggesting that progress is occurring. Competition Many Chinese companies are looking to improve the quality of products and services so they can sell them abroad, which has increased competition as a result. Additionally, consumers can, in some cases, give preference to native companies over those from abroad. The government can also give preference to domestic firms, which makes disrupting the market rather difficult. Labour The US-China Business Council recently published a report that showed 62% of respondents said that they had increased wages by 5% to 10%. Eight percent of
detached from markets elsewhere in the world, and many companies have sunk in China because they failed to take into account consumer preference. Bureaucracy Overseas firms often struggle with laws and regulations in China, with 31% of 338 respondents in a recent business survey listing bureaucracy as their number one concern when expanding into the country. Most common complaints revolve around obtaining the required licenses and permits, with many respondents bemoaning the laborious processes. Governmental challenges Transparency of government procedure and corruption are chief concerns of companies moving into China, although as the new leadership is ushered in, this is likely to change. The citizens of China need to believe the government’s decisions serve their interests, and there is a growing risk that the Party leaders increasingly are viewed as clinging to power in order to enrich themselves. Standards and conformity assessment Rules stating how products are designed, manufactured, sold, used and disposed of exist in China which all products must comply with before entering the market. This can be a very foreign procedure to many companies, and can impact the appeal of the country. Intellectual property Intellectual property rights is an area that has been notoriously difficult in China, although recent reports suggest this is an area that is improving the most. Gary Locke, America's ambassador to China, recently said that “for every foreign company calling for stronger IP protection, there are more Chinese companies calling for the same,” suggesting that progress is occurring. Competition Many Chinese companies are looking to improve the quality of products and services so they can sell them abroad, which has increased competition as a result. Additionally, consumers can, in some cases, give preference to native companies over those from abroad. The government can also give preference to domestic firms, which makes disrupting the market rather difficult. Labour The US-China Business Council recently published a report that showed 62% of respondents said that they had increased wages by 5% to 10%. Eight percent of
CAC-2017_Report.docx