Doing Business in China

Summarizing and Assessing Factors Affecting the Chinese Operations of an American Corporation

The Communist Party of China (CPC) is the only legal political party of any consequence in the country. Some small independent political parties exist to lend credence to a claim of democracy for the country (Douglas, 2001). Effectively, China has a one-party political system. Therefore, competition between political parties in the PRC does not exist. The Communist Party of China controls the governmental bureaucracy in the nation (Pattison & Herron, 2003). It is through the governmental bureaucracy that primary interactions between the citizenry and the CPC occur (Zhou, 2001). Further, although people in China have the right to vote at local levels, the CPC sets policy according to its own agenda (Eckholm, 2001). American corporations operating in the PRC, thus, must be prepared to recognize ultimate CPC control in the PRC, as opposed to catering favor with dissidents.

While bureaucratic actions are predictable in the PRC,

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ds and services, low-levels of investment that work against long-term growth and economic stability, and an increasing income inequality in the PRC. Over the past decade, the extent of governmental involvement in economic assistance and planning decreased. The level of governmental intervention in the economy of the PRC, however, remains high in relation to Western industrial economies (Fung, 2004). Both internal legal structures and the WTO govern foreign participation in the contemporary economy of the PRC. The Chinese are intensely interested in joint venture agreements. Joint venture agreements provide the Chinese with access to both foreign technology and foreign capital (Borrell, 2005). The Chinese are also interested in the licensing of technology from foreign countries. The special enterprise zone concept is a procedure by which the Chinese plan to accommodate foreign business entities on Chinese soil (Clark, 2004; Jung & Hao, 2003). Overall, regardless of the specific form of business ventures involving foreign entities, the Chinese have developed and implemented a counter-trade framework within which all foreign trade must be accommodated. American corporations desiring to operate within the PRC have the option
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Approximate Word count = 1712
Approximate Pages = 7 (250 words per page)

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