China is a market full of promise. After 14 years of tumultuous global economic performance, during which China's GDP has risen by an average of over 12 per cent, it is clear the country offers enormous untapped potential for businesses looking to expand there. On the other hand, it also contains considerable risk for the unprepared.
Commissioned by Pacnet, the latest report from leading industry analyst firm, IDC, “Driving Business Success in China”, should be required reading for any organizations considering expansion into China. The study outlines the current business and political environment, and analyses the factors driving economic growth. It identifies a range of business opportunities for organizations seeking a foothold in China, as well as suggesting how to deal with the risks and challenges.
Among the challenges discussed are:
- Conducting business in an environment where demands on city infrastructures, services and human capital are continually increasing
- The critical importance of establishing the right partnerships with local companies and government entities
- Navigating China's regulatory barriers including foreign investment and taxation rules and regulations
Many of these challenges are also illustrated in a recent Pacnet blog which suggests the essential criteria for assessing a potential IP VPN partner capable of underpinning business expansion into China.