Challenges and Advantages of Doing Business in China

Challenges and Advantages of Doing Business in China

With China emerging as a global power in business within the last decade, knowing about doing business in China has become more important than ever. There are both many advantanges and challenges with doing business in China in this modern era, and understanding both sides of this coin is the key to being successful in China. Some aspects to keep in mind include the cultural barrier, the price of the work force in China compared to the United States, and have the “made in China” brand be accepted back in the United States.

One of the challenges involved with doing business in China involves the cultural barrier. The cultures of Chinese and Americans are really different. Without a good understanding of the Chinese culture, doing business in China could be a diaster. Something as simple as giving a gift to a Chinese businessman could go wrong if the wrong gift is given. Such an example would be a clock. The gift of a clock in America doesn’t seem like a big deal, but in China, the giving of a clock symbolizes the wishing their early demise.

One advantage of doing business in China involves the much cheaper workforce in China. Doing business is all about how much it costs to make a product and how much that product can sell for. By decreasing the costs of making the product would allow that product to be sold at a much more competitive price compared with making that same product in the United States. On the flip side of this however is the fact that sometimes, that “made in America” sign on the back of a product could mean more than the few dollars more it costs to buy that product. Some Americans, in their spirit of patriotism, care more about “supporting” the American economy than anything else. Balancing the stigma sometimes associated with making a product in a foreign country with the lower costs that usually comes along with