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China: A cash cow for the European investors

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  1. Introduction
  2. The factors
    1. The key figures
    2. A new workforce
    3. The reduction of customs duties
    4. A consolidated punishment for counterfeiting
  3. China more open than it appears
  4. The boundaries
    1. Competition in all its forms
    2. An overheating economy that is localized but very real
    3. A great disparity in purchasing power
    4. Quasi-protectionist regulations
    5. A fragile banking sector
  5. Conclusion

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. [...]

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