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Understanding Entry Modes

In: China Business 2.0

Author

Listed:
  • Henk R. Randau
  • Olga Medinskaya

Abstract

When China first opened its economy, foreign investment was limited to Joint Ventures with Chinese partners. Later, China’s entry to the WTO began significant changes for investors and enterprises in the country. Today, foreign investors can enter the market by forming Representative Offices, Wholly Foreign Owned Enterprises, and Joint Ventures. With its implementation of a new Company Law in 2006, China promoted flexibility in the foreign and domestic management of companies in the PRC while the latest announcements indicate that the government intends to continue to ease the setting-up requirements. But in general, business establishment in China is still a bureaucratic, complex, and lengthy process which involves contacting numerous local and national departments and translating many documents into Chinese. It remains to be seen how fast the announced reform of the company registration system which lowers the capital registration requirements and facilitates the establishment of an enterprise credit system can improve the situation.

Suggested Citation

  • Henk R. Randau & Olga Medinskaya, 2015. "Understanding Entry Modes," Management for Professionals, in: China Business 2.0, edition 127, chapter 24, pages 117-120, Springer.
    • Handle: RePEc:spr:mgmchp:978-3-319-07677-5_24
    DOI: 10.1007/978-3-319-07677-5_24
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