Top Business Challenges for Foreign Companies in China

AmCham Shanghai has just released their 2010-2011 China Business Report survey. These are the top business challenges as perceived by US companies doing business in China (322 sample size):
1. Human Resources Constraints
2. Inconsistent Regulatory Interpretation
3. Unclear Regulations
4. Bureaucracy
5. Lack of Transparency
6. Intellectual Property Rights Infringement
7. Tax Administration
8. Domestic Protectionism
9. Difficulty Enforcing Contract Terms
10. Corruption

The companies interviewed belong to a wide range of sectors and have different sizes…. I was wondering, from the perspective of  entrepreneurs and SMEs, are these also your challenges? Which are your top ones?


  1. Based on our experience, my short list is:

    1. Communication.Just an example, I keep having problems with the way they answer the negative questions, even when I know it.
    2. HHRR
    3. The last challenge, I guess is somewhere in between the business culture and point 9 difficulty enforcing contact terms, this is the negotiations. I was told once:” In the west, when you sign a contract this means negotiation is over. In China, is when it really starts”.