How Flight Delay Problems In China Affecting Foreign Businesses

China has turned itself into a global manufacturing superpower. Quite naturally, thousands of business owners and the officials of the foreign companies from all over the world visit various Chinese cities every year. Although China is on its way to usurp the United States of America’s position as the strongest economy of the world by nominal GDP and the world’s largest economy by purchasing power parity, China’s aviation industry needs massive improvement.

Take China’s airports. They may be the world’s most advanced buildings but their management and services are miserable, disjointed and frustrating. International surveys have consistently put US airports and airlines among the top 20 for punctuality, while China’s airlines and airports have monopolised the bottom 10. It is a perilous journey travelling in a plane in China.

Just more than a third of flights took off on time at the four biggest airports in the Yangtze Delta region (Shanghai-Pudong, Shanghai-Hongqiao, Hangzhou and Nanjing) — making them the most delayed in the world by far. Take a look at the reasons behind the flight delay in China

  • China has too many eager airlines
  • A growing number of passengers
  • Airforce wanting its own way
  • Airports that despite years of expansion can’t quite accommodate everybody
  • Airspace in short supply
  • Impacts of bad weather

Airplane-taking-off

In the view of the China business lawyers, along with the tackling legal issues, foreign businesses need to be aware of the flight delays in China as it can have an enormous negative impact on the bottom line of their business. For instance, suppose you have scheduled a business meeting with a China supplier in Beijing and you are in Shanghai. After a long discussion, the China supplier from his tight schedule has given you his appointment. But because of flight delay, you couldn’t manage to attend the appointment on time and the supplier has gone somewhere else to keep his other business appointment. You end up losing your precious time, money ( on your flight ticket) and your business prospect.

Foreign companies doing business in China have to keep in mind that flight delays are the most common incident in China and you are definitely going to get affected by it. So you need to prepare yourself well in advance, schedule your meeting accordingly and be ready to face mass delays and flight cancellations in China.

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China Represents The Biggest Opportunities for the Foreign Brands

“Europe’s mired in mud. The U.S. economy’s flat. So where’s the action? It’s in China,” says Robert Collins, co-author of Doing Business in China for Dummies. Each of the potential Chinese business models accepted by the People’s Republic of China (PRC) has its distinct advantages. This signifies that even small obscure markets, or special niche products that would find the US and European market a tough battleground would find the Chinese market highly conducive.

China is the most successful communist country on the planet where thousands of foreign companies have written their success story by serving to a customer base over a billion people. This second largest economy of the world is accommodating, with more markets, industries and niches and there is no reason for you not to join these bandwagon. The Chinese (consumer) market is large and growing. According to the Chinese business lawyers, this means that entrepreneurs have possibilities to scale their business. During the last quarter-century, China has transposed to a more market-friendly economy that has a fast-growing private sector.

Reforms taken by Xi Jinping– After taking office, President Xi Jinping has vigorously pursued what he has called a “great rejuvenation of the Chinese nation” with his China Dream vision. Under him, China has enacted economic reform to combat slowing growth, such as cutting down bloated state-owned industries and reducing pollution, as well as its One Belt One Road trade project. Xi’s policies have changed the country in various ways, his anti-corruption campaigns, making this country more favorable for foreign investment by cutting the red tape and boosting China’s image as the finest place for doing business are the key factors for China’s stupendous growth.

Second-largest consumer market in the world- China’s overall economic growth is slowing, but the Chinese consumer economy is still massive in absolute terms and poised for increasing growth. China’s government is committed to transitioning the country’s economy from an investment-led to consumption-led. The country will see nearly $2 trillion in new consumption by 2021—about 27% of the total consumption growth that will occur in major economies during that time. It is a very particular advantage that the Chinese market has; because of China’s enormous manufacturing dominance, business has room to grow more than in many other countries. In the view of the most Chinese business lawyers, China thus represents one of the biggest opportunities for consumer companies in the world for the foreseeable future.

Skilled workforce- China’s growing skilled population is undoubtedly an asset for the country. High-skilled workers usually refer to those who grasp expertise or sophisticated skills in a certain area. China aims to expand its high-skilled workers to 39 million by 2020. As a foreign investor, you can be rest assured that there will be no shortage of qualified professionals in China and you don’t need to hire high-salaried professionals from other countries for your operations in this country.

Tremendous opportunity for small business– Chinese consumers are open to creating new relationships with worldwide brands. It’s a tremendous opportunity for a small business to get in early on the Chinese consumer’s brand affinity cycle and create strong relationships. With China’s rapid development and growth. Government rules, regulation, and laws have open new and easy ways for market entry for foreign companies. Today, China accounts for more than half of all global shopping center development, and it is considered to be one of the top market fo retail space constructions.

It has been suggested by the Chinese business lawyers, the rapid development of China’s economy has resulted in the tremendous increase in the average household income and more and more Chinese citizens are entering into the middle class category. In recent years, top fashion brands are enjoying greater success with the younger generation of wealthy Chinese. Undoubtedly, China has emerged as the best country in the planet for doing business.

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