Changes in China's Business Environment and Vendors Corresponding Strategies

  • ID: 3635535
  • Report
  • Region: China
  • 26 pages
  • Market Intelligence & Consulting Institute (MIC)
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FEATURED COMPANIES

  • Bain & Company
  • Boston Consulting Group
  • Capital Economics
  • Deloitte Taiwan
  • Foxconn
  • M.J. International
  • MORE
After three decades of economic reform, China has become a great economic power in the world, thanks to low-cost labors and materials. Now with intensified competition, rising production and labor costs, and excess production capacity, China's economy is facing a strong headwind, posing severe challenges to local and foreign businesses. This report profiles major challenges faced by Chinese, Taiwanese, and foreign companies in China, and provides corresponding strategies to help business owners overcome the difficulties in China's changing business environment.

List of Topics:
- Challenges faced by Chinese, Taiwanese, and other foreign companies in China; the research results were from surveys conducted by various organizations, including American Chamber of Commerce and European Chamber of Commerce in China.

- Top ten challenges for businesses operating in China and their corresponding strategies, touching on labor and production costs, storage of human resources, policy uncertainty, social Insurances and tax, IP infringement issues, the need for business transformation, difficulty in securing capital funds, the risks of unclear laws and regulations, and environmental protection issues.
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FEATURED COMPANIES

  • Bain & Company
  • Boston Consulting Group
  • Capital Economics
  • Deloitte Taiwan
  • Foxconn
  • M.J. International
  • MORE
1. Challenges Faced by Chinese Companies in China
1.1 CESS Survey
1.2 MIIT Survey

2. Challenges Faced by Taiwanese Companies in China
2.1 CIER Survey

3. Challenges Faced by Foreign Companies in China
3.1 American Chamber of Commerce in China
3.2 The US-China Business Council
3.3 AmCham Shanghai
3.4 GIC
3.5. European Chamber of Commerce in China

4. Top Ten Challenges for Businesses Operating in China and Corresponding Strategies
4.1. Challenge 1: Rising Labor Costs
Strategy 1: Industrial Upgrading and Innovation
Strategy 2: Relocate Entry-level Production Lines
4.2 Challenge 2: Human Resource Shortage
Strategy 1: Relocate High-level Staff to Taiwan
Strategy 2: Automate Manufacturing Processes
4.3 Challenge 3: Policy Uncertainty
Strategy 1: Reduce Reliance on Chinese Incentives
Strategy 2: Construct Research Systems
4.4 Challenge 4: Excessive Burden of Social Insurances and Tax
Strategy 1: Sign Taxation Agreements
Strategy 2: Streamline Personnel Structure
4.5 Challenge 5: Rising Production Costs
Strategy 1: Reduce Energy Consumption during Manufacturing
Strategy 2: Joint Procurement and Shipment
4.6 Challenge 6: IP Infringement by Knock-off Products
Strategy 1: Set up Joint IP Protection Organization
Strategy 2: Create Technological Entry Barriers
4.7 Challenge 7: Need for Business Transformation
Strategy 1: Collaborate with Local Businesses
Strategy 2: Raise Capital Funds
4.8 Challenge 8: Difficulty in Securing Capital Funds
Strategy 1: Secure Loans from Taiwanese Banks
Strategy 2: Launch a Second Public Offering on Taiwan's Stock Market
4.9 Challenge 9: Unclear Laws and Regulations
Strategy 1: Comply with Laws and Regulations
Strategy 2: Communicate and Negotiate with China Actively
4.10 Challenge 10: Environmental Protection
Strategy 1: Reduce Exhaust Gases
Strategy 2: Optimize Waste Water Treatment

Appendix

Glossary of Terms
List of Companies

List of Tables
Table 1 Major Business Challenges Faced by Entrepreneurs between 2012 and 2014
Table 2 Major Business Challenges Faced by Enterprises
Table 3 Primary Restraints on Profit Growth in China
Table 4 Do Chinese Enterprises Have Access to Preferential Benefits?
Table 5 Major Concerns about Rising Costs for Foreign Enterprises in China
Table 6 Top Ten Challenges Faced by Germany Businesses in China
Table 7 Primary Challenges for Chinese, Taiwanese, and Foreign Businesses Operating in China
Table 8 China's Top Ten Business Challenges and Corresponding Strategies

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- American Chamber of Commerce in China
- Bain & Company
- Boston Consulting Group
- Capital Economics
- Cathay United Commercial Bank
- China Entrepreneurs Survey System China Social Security Research Center
- Chinas Development Research Center of the State Council
- Chinese Academy of Governance
- Chung-Hua Institution for Economic Research
- Deloitte Taiwan
- European Chamber of Commerce in China
- Foxconn
- German Industry and Commerce
- International Federation of Robotics
- M.J. International
- Management Institute in Taipei
- Manpower Taiwan
- Ministry of Industry and Information Technology
- Ministry of Economic Affairs
- National Bureau of Statistics
- National Development Council
- PwC China
- Roland Berger Strategy Consultants
- State Administration for Industry and Commerce
- Sichuan Provincial General Chamber of Commerce China
- Taipei Chamber of Commerce
- Taiwan External Trade Development Council
- Taiwan Business Association
- TCL Towers Watson
- United States-China Business Council
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