China: Barriers to market entry

Setting up business in China can prove to be extremely lucrative, however due to elements of the once communist gonverment still arife, there can be many restrictions/ barriers to entering a particular market such as :

• Foreign investment sector restrictions (e.g. foreign company cannot operate an online game in China)

• Registered capital requirements (i.e. setting high pay-in amounts for foreign enterprises)

• Indigenous innovation rules (mandating local IP creation for participation in certain government procurement programs)
• These barriers are put up to make it more difficult to operate or start-up business and can be done for many reasons. Maybe foreign products could destroy a new Chinese company and barriers are put up to prevent foreign companies possibly harming this companies sales etc