Title: 6 Challenges of Doing Business in China and How to Overcome Them - Kaplan Financial Education
Headings: 6 Challenges of Doing Business in China and How to Overcome Them
6 Challenges of Doing Business in China and How to Overcome Them
Cultural Understanding
Moving Too Quickly
Cost of Doing Business
Economic Stagnation
The Role of Government in Business
Corruption

Content: Such investment can lead to waste and add to China’s debt. Because China’s economic growth has slowed, policymakers in China have begun focusing away from its reliance on investment and industry and on to consumption and services. This is expected to slow short-term growth; however, this shift should build foundations for more sustainable long-term expansion for businesses. The Role of Government in Business
There is a substantial difference in the role of government in Chinese businesses compared to Western countries. China has a planned economy closely tied to government. In 2007, for example, the US federal government’s fiscal revenue was $2.4 trillion, or 18 percent of GDP, whereas China’s fiscal revenue was 5.1 trillion yuan ($770 billion), accounting for 21 percent of GDP. In China, more than 76% of assets are owned by the government, with people owning less than a quarter; while in the United States, assets are owned privately. This means that to do business in China, a company will most likely have to negotiate with the state.