Companies from all over the world are trying to diversify their business away from China. But the problem is, over the last two decades, China has become one of the finest places for starting up a manufacturing hub and global companies have invested heavily over here. Suddenly, relocating the entire set up to another country is a mammoth task. Moreover, it is hard to find the manufacturers of other countries who can match the efficiency of a Chinese manufacturer.
The ongoing trade war between the USA and China seem to be going long and long. The US companies are trying hard to relocate their business to somewhere else, but still about 20% of their China manufacturers make 80% of their products. It shows how difficult it is to diversify business away from China. As the trade war is refused to die down, it is a good idea to think about relocating your business away from China.
The U.S. and European companies need to realize the fact that diversifying into other markets will take time and money, and it will be stressful and challenging. You need to locate other manufacturing spots according to your business requirement. For instance, if your business requires human labor, countries like India, Bangladesh, Philippines could prove to be a good option. Countries like Taiwan, South Korea, Malaysia are ideal for high-tech manufacturing. You need to analyze your business aspects before diversifying your business away from China. On the other hand, businesses that see potential in China’s new economy might upgrade their investments by moving to one of the country’s dynamic coastal cities for more advanced functions that may previously have been executed primarily within their home markets.
Both Washington and Beijing appear to be digging in for a long battle, although US officials say President Donald Trump would go through with plans to meet Chinese President Xi Jinping at the G20 summit next month if it looked like the discussions would be positive. Even if the hot phase of this trade war passes, tensions will linger and continue to reshape the economic relationship between the world’s two largest economies.
Businesses all over the world have found huge success by doing business in China. When it comes to nurturing the elements necessary for business growth, China has comprehensively outsmarted other countries. It is the rapid development of infrastructure and investment opportunities that have proved to be a decisive factor.
This country is the home to more than 1.36 billion people. It is quite obvious that China possesses a strong and qualified workforce, both in terms of numbers as well as aptitude. Advances in these sectors dramatically lower transaction costs and increase profits, letting investors gain massive returns. Since the commencement of social and economic structural reforms in the 1970s, the country has undergone an extensive and thorough process of liberalization and gradual integration into the world economy. The reforms paved the way for the emergence and constant inflow of foreign business into the country.
There is a cultural difference between China and other countries, but this difference could be turned into a competitive advantage. People of China possess a high work ethic and look to succeed by developing a wide array of professional skills. As a result, those doing business in China will nearly always be dealing with highly committed and competent individuals who are keen to excel not just for their personal gain, but also for the larger aims of their company.
Apart from the above-mentioned reasons, the presence of a qualified China business lawyer community is also one of the major factors for China’s global prominence as the finest business hub. Starting from the IP protection help to the trademark registration assistance, China lawyers offer amazing services to their global clients so that they can carry out their business process in a completely hassle-free way.
Services you can get from China IP lawyers–
- NNN Agreements
- Manufacturing Agreements
- Licensing Agreements
- Product Ownership Agreements
- Mold Ownership Agreements
- Non-Compete Agreements
- China Trademark Registrations
- China Copyright Registrations
- China Patent Registrations and Regular IP Audits
Services you can get from China employment lawyers–
- China Employment Contracts
- China Employer Rules and Regulations
- China Employee Non-Compete Agreements
- China Employee Trade Secret Agreements
- China Employment Audits
- China WFOE Formations
Business policies and regulations in Chian are still changing and upgrading, which may mean new opportunities for the foreign investors. The first step, if the goal is buying, selling, or forming a joint venture, is to identify a China law firm that can help you with all partner. The choice of a partner is extremely important.