RISKS OF OPERATING IN CHINA

RISKS OF OPERATING IN CHINA

• No copyright laws in china
• "Shuanghuan manufactures the Noble mini car, an almost identical replica of the Smart Fortwo"
• BMW threatened to sue as the car was a copy of theirs
• Local business had permission from the Chinese government.
• The car that the chinese firm produced is now banned from Germany

• Ethically immoral
• Workers work 80 hours week
• 5p an hour

• Tried to impose their western vision
• Lost sight of cultural preferences and social structures
• 384 million internet users in China
• China accounts for more than 1/5 of the 1.73 billion global internet population
• Google didn't research domestic competition
• Baidu had upper hand, allowed the chinese to search in their own language
• Offered things Google didn't like free music downloads
• Chinese people mainly use the internet for gaming, rather than work like in the west.
• Prefer to use a mouse and not a keyboard as the chinese language has more characters than western languages.
• Word of mouth is also preferred to blatant advertising (these were not taken into consideration)

• Paying 3bn yuan ($439m; £323m) in bribes since 2007
• 700 travel agencies and consultancies in which to transfer hundreds of millions in bribes in the last six years
• Drug sales sunk 61% after it was hit by a bribery scandal
• Sales of pharmaceuticals and vaccines in China were £750m last year
• May withdraw from most important market in the world
• Turnover rose 1% to £26.5bn in 2013 while pre-tax profit inched up 0.7% to £6.6bn
• Drug and vaccine sales were down 18% in the final quarter of 2013 compared with a 61% drop in the previous quarter
• CEO doubled his bonus last year collecting £1.9m