Would anybody tell me something about investment environment in China? Thank you.?

Answer 1

The question is pretty broad, you really need to narrow it down a lot: which area, what type of investment, what size, type of management...

One important difference is whether you are hoping to exploit the Chinese consumer market or using China as a cheap labor source to build products for export. Not many companies have been successful in the Chinese market, it is very difficult to compete with Chinese companies without sizable investment (P&G, Citroen...), and the competition is fierce.

If you are not knowledgeable about Chinese it is not a good idea, the business climate is very wild, many Chinese have now welcomed the opportunity to make money but have not developed the same set of business ethics you might take for granted in the west. The traditional attitude is a zero-sum one and does not acknowledge a win-win partnership. This is slowly changing, but there are a lot of people with the old attitude. Bald-faced stealing from foreign partners is not unheard of, and in a country where intellectual rights are not defended and consumers are very cost conscious price wars make margins very small. And, the Chinese court system is very reluctant to back western investors over their Chinese partners, and even in the rare cases that they do they have no real enforcement power, so choosing a reliable partner is most important.

The industry is also important. A few years ago high tech companies all started opening research centers in China because of the availability of cheap, highly skilled and talented professionals. Now there have been so many that the pool of good people is pretty much used, and salaries are climbing fast. The qualifications of available people are lower, and salaries are much higher, than a few years ago. I don't think this model is practical anymore.

If you mean investment such as buying stocks, real estate, etc., their market is too new. There is no enforcement of transparency, and much of the current investment is made by new investors buying with the herd mentality, so there is little relationship between price and value, and a lot is overvalued.

So I would say they key (just like any other place) is to understand the situation, look at more than economic growth and potential market because there are a lot of tripwires before you can exploit either.

For more specific information I suggest googling (sorry, yahooing) on the industry you are looking into. You also could try the US Embassy, they should have links to trade groups.

I am an American resident in China for 15 years, the answer is based on my experiences and observations.

Answer 2

Would you invest in a company that has no idea how many employees it has because it is paying so many of them "under the table to escape paying taxes?" Would you invest in a company (their coal mines) that kills more people each year that all the terrorists in Iraq and Afganistan? Would you invest in Enron even if you knew what the real books said? Would you invest in a company that has more spies than HP? If you answed yes to all of those questions, China is the place for you!

If you want the growth with less of the corruption, try India, South Korea, Mexico and Brazil instead.

Answer 3

China, along with India have one of the hottest investment markets in the world. Not only does China export (which has been it's strongest asset), it's own country is begning to consume at a record pace. It has one of the higest growth rates in virtually every catergory. This is not likely to slw down for at least a decade. I would suggest you contact your financial advisor or get an account with one of he big boys like Merril Lynch and review mutual funds that concentrate on asia funds

Answer 4

No we will not have faith it given which you're misrepresenting the information like a typical Fox information anchor. The checklist is China is calling questions appropriate to the plan and how it truly is going to impact US debt. If Obama have been offering a slipshod tax givaway to prosperous individuals the chinese language could desire to correctly known approximately that besides. They carry a great huge form persons debt offered for the duration of the Bush administration. Their activity in our regulations is rational, and no enormous information. there is not any longer something contained in the checklist to show they're detrimental to the wellbeing care plan.

Answer 5

I hear there is a great need to transport goods from China to the U.S. and that there is money to be made in this shipping industry.

Answer 6

Poo