The opening of the Chinese marketplace has had a substantial impact upon the global economy. Many companies have been able to do business in China, allowing them to grow their customer base, as well as their profits.
In 2018, there are some uncertainties ahead that could make it more difficult to do business within the country. In this post, we discuss some of those challenges, and what you can do to help ensure that your business is successful in this coming year as well as in the future.
Potential trade clash with the U.S.
The presidents of both the U.S. and China have made efforts within the last year to try to resolve these issues before they become much more serious problems. Recently, officials in the U.S. are taking a closer look at some of China’s practices regarding certain goods, which could lead to tariffs.
Forecasts possibly too optimistic regarding new construction
This is a solid indicator of financial growth. You can judge the health of an area’s economy by the number of new houses or businesses under construction. New developments mean that people have money to spend and they are willing to spend it.
Forecasts have been generally positive regarding construction in China in 2018, but some are worried that they may be overestimating the amount of money being spent on new homes, businesses and infrastructure within the country. If this decreases, it could be a sign of slowdown, meaning companies will need to adapt in order to meet the changing needs of the marketplace.
Threat of conflict between U.S. and North Korea
China has business relationships with both countries. If the tough talk between the leaders of North Korea and the U.S. continues, it could have a very significant impact upon all of Asia. One should keep a close eye on these developments to have a better idea of what to expect as 2018 moves forward.
If you are thinking of opening a business in China, your very first step should be to consult an experienced attorney about your options. An attorney who understands how the country works can explain what you need to do in order to have the best possible chance of success after you get things started.