China in 2015 will look much like China in 2014, only “more” so. If you are doing business in China, you should be on your guard for the following six things in 2015.
1. China will increasingly crack down on foreigners in China without proper visas. This is more likely to impact you if you are from Africa or the Middle East, but we are hearing of increased problems for Americans and Europeans too. China’s economy is slowing and going after foreigners is a good way for the government to win friends among its own citizenry.
2. China will increase its efforts to root out and shut down illegal and unregistered foreign businesses. China has especially stepped up its enforcement against American and European companies that operate in China but have an entity in Hong Kong without one in the PRC. This has become so common that we are starting to think that Hong Kong is providing some information to the PRC. Providing jobs to Chinese citizens will not let you off the hook on this one; if you are doing business in China, you need a China entity.