PRC business environment

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//Prior to discuss the influence of the global financial tsunami on the business environment of the PRC, it is better to have a brief knowledge of the PRC business environment. This will help the user to understand the actual position of the business environment in China. In this series, the first part of the discussion is including the overview of the PRC Business Environment under the same heading.//

Overview of PRC Business Environment:

The PRC Business environment stands for People's Republic of China. The business market of the People's Republic of China is very vast due to its large population. There is a very great requirement of the patient efforts by all the interested parties who want to business in the PRC business environment. The most common method for the foreign investors to do business in PRC is the joint venture. In the business environment of the People's Republic of China, the operators of the foreign joint ventures have to face several typical barriers. The barriers existed in the business environment of PRC includes the issues related to the laws and regulations of the business and investment. These issues in general include the business vehicles of the enterprises of the foreign investment. In order to establish a joint venture in the PRC business environment, the foreign business organizations are required to have some business negotiations with their prospective partners of PRC. The foreign investors also have to face the problems related to the economic and political issues in PRC (Raddock, 1993).

In the huge business market of China there are vast business opportunities to be penetrated by the foreign investors. Previously the government of The People's Republic of China enforced very heavy restrictions on the investors of the foreign countries who wanted to enter into the business market of the China. One of all the restrictions which were very unusual for the foreign investors was to have a large number of negotiators at different levels of the business. This was forceful because all the business organization of China demanded the application of multiple negotiators at different levels of the business.

In the People's Republic of China, all the business negotiations have their particular features. The business investors of foreign countries have to be aware of general business practices as the general styles and strategies of business negotiations in China vary from one person to other. Even after this, a very high degree of business entrance was met by the foreign investors. Though the foreign investors were allowed to maintain a joint venture with the partners of Chinese trading enterprises, yet they could hold only 49% of the interests of equity in the ventures. In short, this was not very easy, but impossible for the foreign investors to act in China as the operating stakeholder of the business (Raddock, 1993).

Thus, there were very rigorous requirements in the People's Republic of China to make changes in its economy. But even after these changes, the foreign investors are commonly accomplishing their merchandising activities in the People's Republic of China which do not match with the business standards and business regulations of the PRC. Thus, to do business in the People's Republic of China is a very complicated issue for the foreign investors who want to do business in China.

//After having a good knowledge of the business environment of the People's Republic of China, it is very easy to understand the influence of the global ...