[PDF] challenges of doing business in china

What are the biggest challenges when doing business in China?

Here, we take a closer look at what we consider to be three of the biggest challenges when doing business in China. One particular aspect that creates greater complexity for foreign businesses is that legislation and compliance requirements differ between provinces, municipalities and cities. This means that up-to-date local knowledge is a must.

Why is China a difficult market to access?

Local distribution networks, buying habits of local consumers and regulatory requirements can make China a very difficult market to access. What’s more, the market environment is completely detached from most other economies in the world, making it difficult to take the first steps.

Are overseas firms doing business in China?

As the economy continues to grow (expected to expand by 8.2% this year), we assess some of the main difficulties encountered by overseas firms doing business in China. Local distribution networks, buying habits of local consumers and regulatory requirements can make China a very difficult market to access.

How does Chinese culture affect business?

Business people must have some sensitivity to the Chinese culture and how it impacts business. Hierarchy plays an integral part of business culture in China with leaders and managers being more distinguished than in many Western countries. Chinese leaders and managers expect obedience without question. One important concept to master is “ face .”