Continuing the countdown of the 10 biggest problems regarding entering the Chinese market, here are the top 5.

1. THE 10 BIGGEST PROBLEMS
REGARDING CONDUCTING BUSINESS
IN CHINA – PART 2
For additional information about Business with China
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ENFORCEMENT OF INTELLECTUAL PROPERTY (IP)
INFRINGEMENT
While the Chinese Government officials have been making steady
improvement in this area, the state of the legal system will have to
make great improvements before proper enforcement of IP
infringement can be conducted.
Over 90% of the western firms that are operating in China, are still
concerned with the lack of enforcement.
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THE UNFAIR PREFERENCE AND ADVANTAGE AFFORDED TO THE
STATE-OWNED COMPANIES
When you are looking to compete in one of the various industries in
China, you will invariably run into a state-owned and managed
enterprise that can pose a number of problems.
Besides the unfair market competition that is afforded these
enterprises, for obvious reasons, the policies are crafted with this
biased competition model in mind.
Even if you are lucky enough to not be competing with a state-run
business, there are still preferences given to domestic businesses over
foreign-owned companies.
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INCREASING COST OF DOING BUSINESS
As you would expect, as the Chinese economy improves and the middle
class rises up, there is going to be increases in costs related to wages,
inflation, and regulation.
While it is still economical to run a business in China, the sudden
increase of wages, 8% in less than a year, is what is causing many
businesses to look that the neighbouring countries to help reduce costs.
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THE COMPLICATED PROCESS FOR LICENSES AND GETTING THE
NECESSARY APPROVALS
Even though on the face, most business licenses and approvals are
required to be processed and decided on within days or weeks, there
are several cases of western companies waiting for months.
These vital decisions on required licenses can cost a business time and
money, and be a further challenge to be overcome to become
profitable.
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LACK OF QUALITY STAFF AVAILABLE FOR HIRE
The biggest problem that companies currently face when trying to run
profitable enterprises in China is the shortage of skilled labor to choose
from.
This lack of skilled labor is not restricted to any one type of position as
companies across all industries reported this as a major obstacle.
One of the primary drivers that is exaggerating the problem is that the
inflation in wages is causing the top tier talent to search out the highest
paying position at a competing, which can lead to lots of turnover.
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7. For additional information about Business with China
please visit www.China-Business-Connect.com