The Risks of Doing Business in China

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For many global companies, China represents a highly attractive market in terms of size and growth rate. Yet China ranks lower in terms of economic freedom and higher in political risk than do some other countries. Despite these risks, hundreds of companies have established manufacturing operations in China. Assume that you are President of an auto manufacturer planning to build a $U.S. 800 million plant in China. You are discussing this project with your good friend who is intelligent, but has no background in international business. Discuss each of the main risk factors that should be considered in order to make this decision.

Here is a link to useful information from the World Bank on the ease of doing business in many different countries:

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