China is quickly becoming an economic power house. It's now the second-highest economy, eclipsing Japan.
Doing business in China may be a way to save your business or capture more of the market. But a number of risks are present when doing business in China. Be aware of how the Chinese government can impact your business, ensure you will be paid and deal with patent violations.
Role of Chinese Government
According to Justice4Business.com, a risk associated with doing business in China is the role the government plays. While China is a quickly emerging economy it still is a Communist nation. A concern for many businesses is corruption of Chinese officials and lack of legal security in Chinese courts.
Payment
There is money to be made in China, but BuyUSA.gov states that the primary risk of doing business in China is receiving full payment on time.
Patent Violations
Another risk of doing business in China is the likelihood of intellectual property being stolen. Just4Business.com states that sooner or later, everyone doing business in China would deal with patent violations.
