Top Business Challenges for Foreign Companies in China (2011-2012)

AmCham Shanghai has released its 2011-2012 China Business Report. The report insights are based on a survey conducted amongst some of its corporate members ( 315 US-based companies with operations in China participated in it).
I will share some of their key findings in the next few posts. Today I will focus on business challenges and highlight some news.

Key Business Challenges in China (%) (*)

  1. Rising Costs   (91%)

  2. Human Resource Constraints    (90%)

  3. Increasing Competition    (83%)

  4. Lack of Market Maturity    (73%)

  5. Corruption/Fraud   (61%)

  6. IP Infringements      (54%)

  7. Unfair procurement practices   (54%)

  8. Preference for Domestic Companies   (53%)

  9. Labour Unrest (e.g., from restructuring)  (37%)

  10. Lack of Infrastructures    (36%)

  11. Business Disputes    (27%)

 (*) % that answered that a challenge “seriously hinders” or “somehow hinders” their business

 It is difficult to compare these results to last year´s results because this time the challenges have been divided into regulatory/legal and business challenges while last year they were presented in a common list. Still there is something that clearly stands out: “Rising Costs”. Not mentioned last year in the top 10 challenges it makes now a strong appearance at the top of the list.

 Some of the biggest challenges presented last year (bureaucracy, unclear regulatory environment, lack of transparency) are still perceived as important issues and top the list of regulatory/legal challenges.

Coming soon, more on China challenges.

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