In their annual report released recently, the American Chamber of Commerce in Shanghai found that the biggest challenge to their survey respondents — mostly small- and medium-sized American enterprises — found rising costs, HR challenges and an ever-changing regulatory environment to be their biggest challenges. Further, the best way to overcome these profit-leaching obstacles is to stay informed.
According to AmCham in Shanghai:Despite optimism and growth, challenges in the business and regulatory environment in China continue to hinder business. Rising costs, HR constraints, competition and an unclear regulatory environment are among the leading challenges that U.S. companies faced in 2013. For the third consecutive year, rising costs remained the top business challenge, with 89 percent of companies responding that a number of increasing costs in China hinders their business. Human resource constraints and local competition ranked No. 2 and No. 3, respectively. Similarly, top legal and regulatory challenges in 2013 remained unchanged from those over the past three years. Generally consistent with previous years, 80 percent of respondents cited bureaucracy as the No. 1 challenge, with 72 percent declaring difficulties from an unclear regulatory environment and 70 percent were concerned over problems with tax administration rounding out the top three leading legal and regulatory challenges that companies said hindered their business.
Recognizing these hindrances and staying on top of the information is an important way to mitigating or avoiding their effects on your business. So, in Cincinnati, the Chinese chamber intends to help by holding a series of business luncheons with speakers who can keep you abreast of the situation. The first of such luncheons this year will take place from 11:30 am to 1:30 pm March 25. We invite you to join us and learn more about the ever-changing regulatory environment in China. For more information, see this link.