Investing in a market as complex and expansive as China comes with legal, regulatory, and cultural challenges. Many investors establish a local presence through a foreign invested enterprise (FIE), which helps limit the cost and increase the ease of doing business in China, according to an article from China Briefing.
However, investors need to choose their corporate structure carefully. Investors that select the wrong structure invite unnecessary business constraints, costs, and regulatory scrutiny. These challenges handicap growth following market entry and can undermine a company’s plans to expand.
Establishing a business in China is not rocket science, but investors that want to save time and money should carefully consider the options and seek local expertise for best results.
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