Omicron is incredibly contagious and China is not well-equipped to slow it down to the same extent it has done with previous COVID variants. Omicron will likely lead to shutdowns of China's factories and convince more foreign product buying companies to diversify out of China.
Chinese businesses typically want a simple, specific, concrete proposal to which they can respond. If the foreign side leaves the structure vague, the Chinese side will usually have nothing to say. In this situation, a deal that may be good for both sides never gets done because neither side can bring it to the point where the real bargain is negotiated. The Chinese side virtually always wants to show its cards last. If you do not show your cards first, there will be no cards back from the Chinese side.
On December 6, I was a guest lecturer at Florida State University (FSU), providing an overview of what’s happening in China these days. I ended the lecture by making some educated guesses about what the future holds for China. Here is the gist of it. 1. One More Decade of Xi It is fair to
How to control your China operations while avoiding China government control is critical and companies looking to do business in China need to decide what the China market means to them and what they are willing to risk. Companies looking to do business in China should decide what the China market means to them and what they are willing to risk. There is no way to entirely avoid China regulatory risk, but depending on your product or service and your company’s and owner’s risk appetites, there is always a way forward. The question of how to control your China operations is just one of many questions to ask.
Doing business with China just got another level of riskier. That's because these days, what The CCP Does In China Does NOT Stay in China. Ten years ago, our China lawyers would explain to our clients how what they did in China might redound to their detriment outside China. Three years ago, our China lawyers would explain to our clients how what the CCP is doing in China might redound to our client's detriment outside China. And now, our clients are explaining to us how what the CCP is doing in China might redound to our client's detriment outside China.
Doing business in or with Taiwan is likelier to get tougher for those who also do business in or with China. As China ramps up its attempts to pressure and intimidate Taiwan, we expect it to expand the scope of what is unacceptable cooperation with Taiwan's government. If political donations to Taiwan's governing party are verboten, why not paying taxes? Or establishing a company in Taiwan? Or selling equipment to Taiwan's military? Or even simply doing business in or with Taiwan?
Para triunfar en China, hay que hacer las cosas bien. Cinco claves para el éxito en China, a saber. ¿Y qué es hacer las cosas mal? En fin, a hacer las cosas bien.
How to Succeed in Doing Business in China and with China. The New Paradigm is the Old Paradigm.
China's macro issues impacting your international business
Foreign Country Distribution Agreements: The Ten Questions to Ask.
