The Chinese government is putting great emphasis on indigenous innovation as a driver of future economic growth and national prestige (as demonstrated by the 13th five-year plan covering 2016-2020). It is, therefore, encouraging the establishment of R&D centers within the country by offering a variety of incentives. In 2016, the Ministry [...]
China has begun showing considerably less leniency towards foreign companies over violations of Chinese “political correctness” than it has in the past. When companies refer to territories, over which China claims sovereignty, as separate countries, they risk jeopardizing their business survival in China. Their business can be affected either through Chinese [...]
China’s business interests in Latin America have grown at a breakneck pace in last two decades. China is currently the largest trading partner of Brazil, Argentina, Chile, and Peru. China has stepped in to play a unique and unprecedented role in Latin America’s economic development. Latin America, like much of the [...]
China’s first comprehensive system of rules for data protection is included in the Cyber Security Law, which came into effect June 2017. These rules govern the collection of personal data over information networks. Data protection within China is becoming a more politicized issue. Chinese consumers, in fact, appear to have some [...]
The Chinese manufacturing industry will face challenges in the near future. How to maintain the competitiveness of the manufacturing industry in the global market, while transforming the country from a large production center into a large and advanced manufacturing power is the government's primary task. The slowdown in growth of the [...]
In the last few months, China has announced that it will open its doors wider to foreign investment. On the surface, this appears to be a response to the trade war rhetoric between the Xi and Trump governments. However, foreign investment reforms have been in the making for several years. In [...]
Chinese manufacturing activity surged in December 2017, according to an independent indicator released Tuesday by the media group Caixin. This contradicts the government figure showing a slight slowdown in manufacturing growth. The Purchasing Managers' Index (PMI), calculated independently by IHS Markit and published by Caixin, stood at 51.5 last month versus [...]
In an attempt to stimulate innovation and entrepreneurship, China’s state council has recently announced tax cuts for small firms and high-tech companies. The intention is that the reduction in their tax burden will spur companies to spend more cash on R&D, hiring, and business expansion. These measures come in direct response [...]
In 2016, the total value of Chinese manufacturing output reached RMB 216.2 billion, accounting for more than 29% of GDP. This represents an increase of 34% from 2012. Over the last five years, the total value of domestic manufacturing output has grown at a compound rate of 6% per year. In [...]
Western media outlets have zeroed in on China’s shadow banking sector and its rapid growth in recent years. Shadow banking refers to lending and credit intermediation outside of the typical banking system. The reason why it, at least theoretically, poses risks for the wider economy is that shadow banking is not [...]
Low employee retention in China is a major issue for companies across a variety of industries. According to a survey conducted by Hay’s recruiting, 35% of employees left their company within 2 to 4 years.[1] Fourteen percent left their employer within 2 years. Additionally, a gallup survey from 2012 showed that [...]
Having local managers and executives can be an invaluable asset for new entrants into the Chinese market. The use of local expertise and local networks can often mean the difference between business success and failure in China. Nonetheless, finding local executives can be a major challenge, as Western-style headhunting methods are [...]
Attracting first-rate technical talent is one of the most important ingredients of success for technology-oriented companies in China. Recruiting top technologists and engineers has become a formidable task as China pours enormous resources into advancing its technological capabilities. To help alleviate this problem, the Chinese government is developing incentive schemes to [...]
The policy for Chinese companies going global was launched in 1999 as a call to encourage outward direction investment (ODI) in line with national strategic objectives. In particular, the policy was intended to accelerate the acquisition of foreign technology and expertise. Other goals include managing overcapacity in the Chinese market, improving [...]
Since China’s corruption crackdown began, the authorities have caught a number of foreign companies engaging in corrupt practices. The Chinese government has sent a series of strong messages to foreign companies. For example, in 2014, GlaxoSmithKline was found to have been bribing doctors. Authorities ordered the company to pay a fine [...]
China has long since maintained strict foreign exchange controls - a common concern and headache among foreign investors. Businesses will naturally think twice about investing in the first place if they are unsure of their ability to repatriate profits. Recent economic news in China has increased these concerns. Since the massive [...]
In the midst of escalating trade tensions between the U.S. and China, Xi Jinping announced that China would liberalize its car market by 2022. Foreign investment into the Chinese car market is subject to a joint-venture requirement with 50% Chinese ownership. Car imports are subject to a 25% tariffs. In 2017, [...]
China's rules on outbound investment shifted considerably following the surge in capital outflows in 2016. In December 2017, the National Development and Reform Commission (NDRC) issued a new system regulating outbound investment outlined in the Administrative Measures for Enterprise Outbound Investment. The new rules bring changes to the reporting and monitoring [...]
Though China’s labour markets remain competitive, most know that the days of cheap, abundant labour are over and that, if seeking inexpensive labour is your primary goal, there are better alternatives to China. With rising wages, China is gradually shifting its economic growth priorities towards the growth of the consumer market. [...]
Looming economic reforms in China are once again creating fanfare, prompting outside observers to ask what will come of China's economic reforms in 2018. At the Davos Forum in January 2018, Xi Jinping’s top economic adviser and Politburo member, Liu He told audience members to expect big progress on China's economic [...]
