In today's world, where everyone's main goal is to make maximum profits, China is at the heart of the economic debate. It attracts more European investors than the United States and has become the sixth largest economy in the world. In addition to the excitement that drives the Chinese is the Beijing Olympics. The Chinese have now acquired an expertise, which enables them to attract a large pool of investors. The rapid economic development of China creates many opportunities and demands. Indeed, it seems to attract foreign companies owing to its strong growth, since its accession to the WTO in 2001.
[...] With respect to the automobile industry, the Chinese state has implemented a regulation to limit the number of plants in the country in order to protect domestic manufacturers. Moreover, the establishment of a dual distribution system is being considered. One would cater to locally produced vehicles, and the other to imported cars. The perfect illustration of these measures is that the Chinese government excluded all proposed construction projects by foreign firm with respect to the Beijing Olympics in 2008. A fragile banking sector The question of the banking situation remains problematic. [...]
[...] Thus, the victim of an infringement may bring a civil action before a local People's Court for the termination of infringing fraudulent activities and the elimination of their effects, as well as an apology and compensation for damage caused. It was previously possible to request that measures be imposed to prevent destruction of evidence or the occurrence of irreparable harm. Where the violation of any right of intellectual property is especially serious, the infringer's criminal responsibility may be engaged. The criminal penalties are according to Chinese texts are very severe. [...]
[...] This parameter is obviously a very significant factor for European investors. The quality of local managers and engineers allows Europe to benefit from a more effective workforce, because people, who work on site, work closely with manufacturers and are familiar with local practices. In addition to this, workers, engineers and executives are much cheaper in China than in European countries. Finally, with a population of 752 million workers, China is a reservoir of inexhaustible manpower. Encouraging measures The reduction of customs duties Customs duties and other taxes are certainly high, but we must take into account the fact that they are steadily falling since 2001. [...]
[...] Finally, though foreign firms prefer to work through official channels because of its simplicity, speed and efficiency, the judicial process allows the company which is a victim of forgery, to obtain amounts that generally exceed those granted by the Administration for the repair of physical damage. However, the prosecution is seldom involved, although it is more of a deterrent than civil action, given the requirement that the amount of illegal turnover exceeds 10,000 for an individual and 50,000 for companies. [...]
[...] This scourge has not yet been reprimanded by the Chinese government and does not encourage European investors to come up in China. A great disparity in purchasing power Often, European companies perceive China as a paradise because of its very large population. This however, is China's biggest problem. Of the 1.3 billion Chinese, only 300,000 have a heritage of over a million dollars. Also Chinese residents have an average annual GNP of 780 which shows that most capital goods are not yet available to this population. [...]
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