Vol. 3 No. 1 (2024): The QUEST: Journal of Multidisciplinary Research and Development
Articles

The Impact of Political Risks on Foreign Companies’ Market Entry Strategies in China

  • Zhou Songqui,
  • Ma. Florisa Quijano
Zhou Songqui
Nueva Ecija University of Science and Technology
Ma. Florisa Quijano
Nueva Ecija University of Science and Technology
DOI: https://doi.org/10.60008/thequest.v3i1.186

Published 06/30/2024

Keywords

  • keywords: multinational companies, political risks, entry challenges, regulatory environment, intellectual property, cybersecurity, compliance management

How to Cite

Songqui, Z., & Quijano, M. F. (2024). The Impact of Political Risks on Foreign Companies’ Market Entry Strategies in China. The QUEST: Journal of Multidisciplinary Research and Development, 3(1). https://doi.org/10.60008/thequest.v3i1.186

Copyright (c) 2024 The QUEST: Journal of Multidisciplinary Research and Development

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Abstract

This study explores the challenges faced by multinational companies operating in China, focusing on political risks and entry challenges. The analysis is based on five established companies: IBM (China) Co., Maersk Logistics (China) Co., Ltd., Schneider Electric (China) Co., Ltd., 3M China Limited, and Marriott International (Greater China) Limited. The findings reveal high risks associated with government regulations, cultural differences, intellectual property protection, trade barriers, compliance requirements, and technology/cybersecurity. Political challenges during market entry include concerns about intellectual property theft, piracy, and cyber espionage. In response, a strategic plan is proposed to mitigate these challenges, emphasizing financial cooperation, cultural adaptation, intellectual property management, trade compliance, and cybersecurity readiness. The goals include enhancing corporate image, reducing disputes, increasing market share, and achieving leadership in compliance and cybersecurity. Conclusions highlight the strategic approaches adopted by the analyzed companies and the necessity for careful consideration of regulatory environments. Recommendations include building local partnerships, investing in research and development, implementing sustainability initiatives, and developing comprehensive compliance systems. The proposed strategies aim to help foreign companies navigate the complex Chinese market successfully.

Full Paper

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