Doing Business in China

Why China?

Investing in China is no less an imperative for private companies than it is for large public companies. China’s gradual embrace of market-oriented economic and business principles, its entry into the World Trade Organization (WTO), its growing middle class, its low labor costs—all have propelled it to the forefront of media attention and business planning. Firms of all sizes understand that by ignoring this potentially vast market for their goods and services or by failing to take advantage of the possibility of labor arbitrage, they risk falling behind their competition.

Given the right approach, private companies of various sizes can be extremely successful in China. Despite widespread publicity around the difficulties of operating in China, the risks of China’s business environment can be mitigated by working closely with knowledgeable advisors, local partners, and government officials. The need for guidance is especially acute among mid-size private companies, which generally lack the resources and the market expectations of large public firms.

Well-managed operations in China have the potential to save a company significant sums and help expand its business more quickly.  But in such a complex market, a blanket across-the-board- approach to strategy is impossible.  Every decision, from the size and type of investment to the level of participation in the market, must be carefully considered and taken with a view towards the firm’s particular industry, goals and resources.