China being the most populous country in the world needs to have the strictest and detailed regulations. Chinese laws are the oldest and traditional in the world. In the early 20
th
century, the Chinese regulations were a collection of Chinese traditional laws and the Western Influences. It was always hard to change those laws and regulations. The business sector of China is also bounded by some rules and regulations. There are clear boundaries and limitations which should be kept in mind in doing a business. Well, China business is a fastest growing industry. And there are some of the trending issues which seem to have an impact on the laws of the state. Let’s put an eye on these trending issues which influence laws in business world.
- As the Chinese economy is slowing down, the government will try to cut the number of visas they are issuing to the foreigners. People from Africa will be heavily disturbed because of this law, while Americans & Europeans are also in trouble because of the increased problems in getting the visa. The government wants their citizens to be handling all the industrial activities happening in the country. Thus, there is a probability that the businesses, which deals with international clients or get their raw material from countries mentioned above, can be affected.
- The foreigners’ business in China has also been affected, as the government has shaped the law about doing business in China. If any foreigner is doing business in China, the business should be a Chinese entity. The government is effectively taking steps against the illegal and unregistered foreign businesses in the Chinese premises.
- In order to stabilize the economy, the government has also passed a law regarding the tax collection from the foreigners’ business. Doing a business in China, with being the operations getting carried out in China and earning huge profits will be greatly influenced if you don’t own an account in China. The government will be able to get a hold on your super-normal profits. Thus, it is the right time to get an account there to keep the business run smoothly.
- It has been a fact that Chinese respect their relationships, either with the employee or with the competitor. Believe me; they are really good at maintaining them. Working in the Chinese state and thinking about that you won’t get sued is not a truth anymore. Litigation has been practiced here from a last few years. There are certain chances of being getting sued if you fire off a Chinese employee before informing him or her or without a legal notice according to the contract. So, it is better to play safe.
- The crackdown for the corruption is also one of the hottest news in the business industry of China these days. As per the employee and human resource agencies rules in the United States, the Chinese employee can also fight for their rights if they are working in a foreign company, because the foreign company operates under the rules set by SEC. Hence, keep a check on the reward and recognition system of the employee as the employees are now aware of their rights and can fight for rewards.