The Domestic Business Environment of China
Introduction China has already experienced a substantial growth in the field of international business because aside from its local companies going international, many international companies from different countries have already started to dominate the Chinese market. As a result, it was perceived that the Chinese economy will continue to grow at a relative pace and would be stable enough to be derailed easily by sudden crises. But even though the Chinese economy is now getting popular in the international market, the country is not taking its domestic business environment for granted because no matter how the country’s economy was fueled by the growing presence of international companies, the country remained adherent and makes it domestic businesses still a priority. China has been known for being culturally embedded reason why when it comes in prioritizing business environment, its domestic business always come in first followed by its international counterpart. Consequently, it is quite inevitable that international companies experience some difficulties staying active and competitive in the Chinese market. On the other hand, being a target for various international companies domination does not necessarily mean that China has a very accessible business environment because as a matter of fact, its huge market is driven by various demands coming from culturally-embedded consumers. Meaning, it is quite difficult for foreign culture to get Chinese consumers’ consideration for certain products and services. In order to determine the challenge and opportunity of doing business in China, this paper will explore the country’s domestic business environment, paying attention on its political, socio-cultural, and economic aspects. In addition, the effects of the country’s domestic business environment to international companies would be tackled as well.
The Context of Domestic Business Environment Over the years, China has demonstrated rapid transition from
The Context of Domestic Business Environment Over the years, China has demonstrated rapid transition from
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