In recent years there are some voice kept on complaining & querying that the business environment in China were getting worse. Coca Cola failed in buying Huiyuan, some comments on Rio Tinto Trial and Google China moved its head office from Chinese mainland to Hong Kong, Jeffrey Immelt the CEO of GE even complained it was most hard time to the Chinese commerce environment since passed 25 years. All above seem to be indicated that its really getting worse.More than this, a research report was published by World Bank recently comparing four points of foreign capital investing environment among 87 countries (foreign stock ownership proportion limited in some industries, procedure of setting up a foreign firm, procedure of taking land and system of commercial mediation).The report said compared among East Asia and Asia Pacific area, there were more rigid rules in China than in other countries. Pierre Guislain, one of the main reporter, said that compared with the other 86 countries there were too much restrictions on foreign trade in China.
However an opposite viewpoint appears at the same time. The American Chamber of Commerce in South China which has more than 1,700 members of enterprise published “White Paper on the Business Environment in China 2010” in March 2010. It reported that in 2010 investment budgets for foreign enterprises appear to have increased by 44 percent—nearly recovering to pre-financial crisis levels—although 3-year budgets lag in recovery. AmCham South China estimates that its members will reinvest a minimum of $9.4 billion over the course of the year, and notes that 90 percent of study participants consider the business environment to be good, very good or excellent. Furthermore, the Chamber estimates that its member companies have contributed to the creation of approximately 429,000 additional jobs for urban residents—about 4 percent of the 11 million total new urban jobs.
Why so different comments came out at the same time? Is it strange? No.
In all conscience, the commerce environment in China for the foreign investors is not so perfect and there are lot of things need to be improved in fact but anyway it is not getting worse like somebody worried. The most important thing is that if you really understand what position you have and what kind of business you are doing in the country you invested. You should know completely everything concerning your business including the government policy & rule information, and learn how to deal with all relationship and make a right plan for your business development then you can control and deal with your business freely and easily, as we said like a fish in the water.
Later I will post another article making expatiate on a real situation of the investment environment in China comparing with other similar countries.