Changes in China's Business Environment and Vendors' Corresponding Strategies
Table of Contents
1. Challenges Faced by Chinese Companies in China 4
1.1 CESS Survey 5
1.2 MIIT Survey 6
2. Challenges Faced by Taiwanese Companies in China 6
2.1 CIER Survey 7
3. Challenges Faced by Foreign Companies in China 7
3.1 American Chamber of Commerce in China 8
3.2 The US-China Business Council 8
3.3 AmCham Shanghai 10
3.4 GIC 11
3.5. European Chamber of Commerce in China 11
4. Top Ten Challenges for Businesses Operating in China and Corresponding Strategies 12
4.1. Challenge 1: Rising Labor Costs 13
Strategy 1: Industrial Upgrading and Innovation 14
Strategy 2: Relocate Entry-level Production Lines 14
4.2 Challenge 2: Human Resource Shortage 15
Strategy 1: Relocate High-level Staff to Taiwan 15
Strategy 2: Automate Manufacturing Processes 15
4.3 Challenge 3: Policy Uncertainty 16
Strategy 1: Reduce Reliance on Chinese Incentives 16
Strategy 2: Construct Research Systems 17
4.4 Challenge 4: Excessive Burden of Social Insurances and Tax 17
Strategy 1: Sign Taxation Agreements 17
Strategy 2: Streamline Personnel Structure 18
4.5 Challenge 5: Rising Production Costs 18
Strategy 1: Reduce Energy Consumption during Manufacturing 19
Strategy 2: Joint Procurement and Shipment 19
4.6 Challenge 6: IP Infringement by Knock-off Products 19
Strategy 1: Set up Joint IP Protection Organization 20
Strategy 2: Create Technological Entry Barriers 20
4.7 Challenge 7: Need for Business Transformation 21
Strategy 1: Collaborate with Local Businesses 21
Strategy 2: Raise Capital Funds 22
4.8 Challenge 8: Difficulty in Securing Capital Funds 22
Strategy 1: Secure Loans from Taiwanese Banks 22
Strategy 2: Launch a Second Public Offering on Taiwan's Stock Market 23
4.9 Challenge 9: Unclear Laws and Regulations 23
Strategy 1: Comply with Laws and Regulations 24
Strategy 2: Communicate and Negotiate with China Actively 24
4.10 Challenge 10: Environmental Protection 25
Strategy 1: Reduce Exhaust Gases 25
Strategy 2: Optimize Waste Water Treatment 25
Appendix 27
Glossary of Terms 27
List of Companies 28
List of Tables
Table 1 Major Business Challenges Faced by Entrepreneurs between 2012 and 2014 5
Table 2 Major Business Challenges Faced by Enterprises 6
Table 3 Primary Restraints on Profit Growth in China 9
Table 4 Do Chinese Enterprises Have Access to Preferential Benefits? 9
Table 5 Major Concerns about Rising Costs for Foreign Enterprises in China 10
Table 6 Top Ten Challenges Faced by Germany Businesses in China 11
Table 7 Primary Challenges for Chinese, Taiwanese, and Foreign Businesses Operating in China 12
Table 8 China's Top Ten Business Challenges and Corresponding Strategies 26
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