foreigncompaniesinchinaunderattack.docx

foreigncompaniesinchinaunderattack.docx - MGT472-01...

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MGT472-01 SPRING2017 Foreign companies in China 7-12 what factors do you think are behind these events? Do some research to find out whether there have been more such problems since this writing. Is it just American companies that are being targeted? According to this case, it shows that foreign companies in China are under attack by the country’s own government and business regulating organizations. I think that this occurs due to the country’s strategy to lower competition for their own local businesses. Due to manufacturing, production, and labor costs being very low in China, it has created an alluring location for companies from North America and Europe to outsource their products and change their headquarter locations to Asia. By having more foreign companies enter China and station their businesses there, competition has risen by a significant amount causing a decrease in profit for local businesses. Creating more obstacles for the entry of these companies is not enough
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