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Changes in China's Business Environment and Vendors' Corresponding Strategies

Changes in China's Business Environment and Vendors' Corresponding Strategies

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.


  • CHALLENGES FACED BY CHINESE COMPANIES IN CHINA
    • CESS Survey
      • Table Major Business Challenges Faced by Entrepreneurs between 2012 and 2014
    • MIIT Survey
      • Table Major Business Challenges Faced by Enterprises
  • CHALLENGES FACED BY TAIWANESE COMPANIES IN CHINA
    • CIER Survey
  • CHALLENGES FACED BY FOREIGN COMPANIES IN CHINA
    • American Chamber of Commerce in China
    • The US-China Business Council
      • Table Primary Restraints on Profit Growth in China
      • Table Do Chinese Enterprises Have Access to Preferential Benefits?
    • AmCham Shanghai
      • Table Major Concerns about Rising Costs for Foreign Enterprises in China
    • GIC
      • Table Top Ten Challenges Faced by Germany Businesses in China
    • European Chamber of Commerce in China
  • TOP TEN CHALLENGES FOR BUSINESSES OPERATING IN CHINA AND CORRESPONDING STRATEGIES
    • Table Primary Challenges for Chinese, Taiwanese, and Foreign Businesses Operating in China
    • Challenge 1: Rising Labor Costs
      • Strategy 1: Industrial Upgrading and Innovation
      • Strategy 2: Relocate Entry-level Production Lines
    • Challenge 2: Human Resource Shortage
      • Strategy 1: Relocate High-level Staff to Taiwan
      • Strategy 2: Automate Manufacturing Processes
    • Challenge 3: Policy Uncertainty
      • Strategy 1: Reduce Reliance on Chinese Incentives
      • Strategy 2: Construct Research Systems
    • Challenge 4: Excessive Burden of Social Insurances and Tax
      • Strategy 1: Sign Taxation Agreements
      • Strategy 2: Streamline Personnel Structure
    • Challenge 5: Rising Production Costs
      • Strategy 1: Reduce Energy Consumption during Manufacturing
      • Strategy 2: Joint Procurement and Shipment
    • Challenge 6: IP Infringement by Knock-off Products
      • Strategy 1: Set up Joint IP Protection Organization
      • Strategy 2: Create Technological Entry Barriers
    • Challenge 7: Need for Business Transformation
      • Strategy 1: Collaborate with Local Businesses
      • Strategy 2: Raise Capital Funds
    • 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
    • Challenge 9: Unclear Laws and Regulations
      • Strategy 1: Comply with Laws and Regulations
      • Strategy 2: Communicate and Negotiate with China Actively
    • Challenge 10: Environmental Protection
      • Strategy 1: Reduce Exhaust Gases
      • Strategy 2: Optimize Waste Water Treatment
        • Table China's Top Ten Business Challenges and Corresponding Strategies
  • APPENDIX
    • Glossary of Terms
    • List of Companies

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