Installing and protecting one´s business in China´s huge domestic market
Why Invest in China ?
Investing in China allows one to take advantage of its huge domestic market. The middle-class is growing and eager for consumer goods as well as services. The People’s Republic of China has undergone an extraordinary economic development in the past thirty years and has retaken the dominant position it had previously held in the Far East.
Aspects to monitor when investing in China
To protect one’s business in China, it is necessary to take into account the geopolitical situation which has many countries in the region worrying about China’s emergence as a global superpower. Relations have become tense in recent years and this can have a negative impact on regional trade. Moreover, the Chinese economy seems to be going through a slowdown; it remains to be seen whether this is a temporary or indicative of deeper structural problems. This can shrink the range of possibilities for investing. However, President Xi Jinping’s campaign against corruption should help to clean up the Chinese business domain and create a more favorable investment environment.
IAS8’s recommendations for China
China’s potential remains immense and should continue to attract international investments. But one should not underestimate the challenges linked to the complexity of the country’s distinct culture, as well as the sheer size of country. This last point is fundamental – when considering the risks and opportunities for a given project in China, one should not do so merely at the national level but also take into account the specificities of the province or municipality within which the project is to be located.