Foreign Business in China: Challenges and Opportunities Exist in 2017

March 18, 2017

The investment of international funds in the Chinese market increased moderately by about 4% last year, a tab lower than what was obtainable in 2015. It has left a lot of people puzzled about whether China is fast turning into an impossible economic environment for international firms.

Investors’ confidence research has shown that a majority of African and European companies still have faith in the fact that China is still an impressive front for investing. Even in the midst of these positive assurances, they seem to be faced with a difficult trading atmosphere.

70% of European firms in China experienced a feeling of hostility than they did about a decade ago, and around 81% of United States firms experienced such.

This was laid at the feet of the constant alteration in China’s economic deceleration and heightened protection. Some quarters believe that the nation has developed to become less reliant on international investments, technology, and marketing experience. So, what exactly is wrong with China? “The difficulties are palpable,” Pei Changhong disclosed. “Some important parts of our economy such as the cost of labour and land are on the rise. But on second thought, it is a given that China is not overly subservient to international funding as in the past.

China’s fixed funding can be as much as trillions of yuan annual, but international funding only accounts for a little below 1 trillion yuan, which is a minuscule part of the country’s source of funding,” Pei disclosed.

This leads to the inquisition: Is the giant of the east still a viable option for trade and business? “Funding in manufacturing trade is on the decrease,” Changhong disclosed.

“These areas will be more and more tight to do business in due to an increase in competition. But business focused on quality manufacturing is entirely open in China.

I reckon that deciding to begin a business in an aspect that China isn’t strong in just yet might further increase her prospects,” Pei disclosed.

Changhong also advised against the renminbi’s stable nature and the unsure issues with the federal reserve’s of the United States.

The interest rate will offer some difficulties for international trade deals in China in the coming year of 2017.

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