Question

What is your perspective of the China business environment right now as a foreign business? How do you handle the Challenges?

Can I have some data or reference for that? put some figures in the answer, better come with some chats for illustration. I would better understand about that.

Answer 1

The Chinese business environment right now is facing a lot of challenges as a foreign business. The several challenges include increase in costs (arising from increasing tax burden, general inflation, human resources, insurance fees/payroll taxes); the second challenge arises from the competition with the Chinese companies.

Are rising costs in China a concern?

Year	Yes vote	No vote
2007	88	12
2008	90	10
2009	70	30
2010	90	10
2011	85	15
2012	90	10
2013	96	4

The challenges can be handled through the effective means of a unified taxation system, removing the excess burden of multiple taxes. Secondly, the competition can be eased by having joint ventures with Chinese companies. This will help new entrants to have ground to expand their business ventures.

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