No one likes missing a good party, and in business there is no exception. Currently, there is no locale hotter than China. Firms from all over the world are clamoring for entry into its marketplace – if they aren’t there already. The presence of western technology and goods is helping to shape the appetite of one of the world’s largest emerging consumer bases supported by accelerated Chinese economic growth. The population is eager for the middle-market and luxury products that the West has to offer. This potent demand is a driving force for western companies to garner China as a key strategic economic ally and partner. Demand is further substantiated by the World Bank’s 2010 report indicating that China is the world’s second largest economy, excluding the Eurozone, with a GDP of $10 trillion.
For many foreign investors, including those from the United States, doing business in China can seem enigmatic. The country yields tremendous entrepreneurial opportunity, yet one must not forget that the country is still state controlled, creating a challenge for interested U.S. companies. For foreign investors, especially those in the West, the lure of access to the Chinese market is great, and rightfully so. However, the rules and the playing field are vastly different than what they have faced traditionally and in many ways are like no other in the world. Still, investors are eager to accept the basic tenet – with high rewards come risk. This is even further evidenced by the expansion of shared technologies between western countries and China, which has fueled China’s ability to build an economy supplemented by massive exports. For those who are venturing into and operating in this vast marketplace, protecting your business against the unfamiliar is essential. Western companies are quickly learning that a land full of promise quickly brings with it an unfamiliar legal and regulatory structure which often requires assistance to fully understand and navigate effectively.
