Wan Ching 53084063
MKT4656 Contemporary Issue in China Individual Assignment
How do you look into China business environment right now if you are a foreign business? How do you handle the Challenges?
(1) Is China still attractive for foreign business?
From a global perspective, China is still one of the most attractive economies, which has a vast market and consumer groups. During the Davos forum, British Telecom released a study1 on the Chinese market attractiveness, the survey is conducting from 1150 multinational corporation including the United Kingdom, the United States, Benelux, France, Germany, South Africa, Spain, United Arab Emirates, Brazil, China, Hong Kong, India and Singapore.
The results show that China is still one of the three global market that multinational corporation would like to expand the most. In early 2014, FDI 2shows that there is a 3.2% increase in the newly established foreign-invested enterprises and a 2.2% increase in actual use of foreign investment.
(2)What are the Challenges and how we handle them?
In China, many administrative and bureaucratic tasks can be very time-consuming. Any related essential business task including register your company or apply a bank account may take a few months or more. Due to relatively weak rule of law with inconsistent regulations, the application processes may not always user-friendly.
Besides, many application procedures in China still require paperwork3 that needs to be filled in and stamped, instead of electronic form. These administrative works required unexpectedly long time to be completed. Many foreign companies hire few local staff in China, in the sense of facilitating marketing and sales. But in fact, these employees spend most of their time completing administrative tasks.
How to Handle Political Challenges?
There is a need for foreign enterprises to form a local administrative team, which are responsible for all the complicated and...