The Industrial Policy of China

The Industrial Policy of China

Franchise Industry

I. Introduction

The dietary life is one of the most important factors in life. Many people look for more and more delicious food. Actually, China is one of food giant with France and Turkey. It means that restaurant business will develop more and more in China. I think that restaurant industry area will expand and companies try to enter their market. In the world, there are a lot of franchise restaurant such as KFC, Mc Donald and Pizza Hut. Other companies also want to expand their business. Therefore, I will describe Chinese franchise industry current state of affairs, trends and related legislation. In addition, I find lack consistency franchise system and improvement of franchise policy

II. Chinese Franchise Industry Current State of Affairs

To rapidly develop franchise industry, China established FDS that is franchise management consulting firm. This firm cooperates with franchise association agency of all countries of the world and it also receives guidance to business. After China becomes a member of WTO, the Franchise industry has also been rapid growth. In 2001, sales of Franchise BaiJiang companies were 162 billion RMB. This value had increased 48% year on year. These values instruct that Chinese franchise management is located on top in the retail market. About China is committed that, within three years after joining the WTO, foreign companies to establish business in China that they should cancel, China announced “Foreign investment regulations to lead the way <指導外商投資方向規定>” and enforced after April 1. 2002. According to this regulation, to lead and attract foreign investment by market developing demand, China actively pushed opening country to foreign intercourse such as Service trade, Telecommunication, Architecture,