Recent success of China’s middle class means that there is a pool of customers in that country that is too large for most businesses to ignore. Still, while domestic firms in China are thriving, foreign companies continue to struggle for a foothold.
Culturally and legally, corporate investments in China are complex. It is vital to understand what sort of corporate structure to use. The right business entity can in some instances reduce costs and help the business cope with massive amount of regulations.
China recently adopted its e-commerce law. Its purported aim is to protect intellectual property rights as well as personal information. Those e-commerce operators that fail to fulfill their “duties to protect consumers” face significant financial penalties. This particularly applies to operators who fail to take steps to prevent intellectual property right infringement.
Talks between Chinese and American officials continue concerning tariffs and intellectual property (IP) concerns. The U.S. continues in its demands that Chinese improve IP protections regarding American businesses.