China issues new cybersecurity review measures

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lester Ross ◽  
Kenneth Zhou
Keyword(s):  
National Security ◽  
Strategic Alliances ◽  
Chinese Government ◽  
Self Assessment ◽  
Extensive Experience ◽  
Content Type ◽  
Foreign Companies ◽  
Foreign Products ◽  
Doing Business ◽  
Business In China

Purpose To describe and analyze the implications of the new Measures (the “Measures”) for Cybersecurity Review jointly promulgated on April 27, 2020 by twelve Chinese government departments led by the Cyberspace Administration of China (CAC). Design/methodology/approach Defines the scope of the Measures, explains the functions and obligations of critical information infrastructure operators (each, a CIIO), outlines the self-assessment and cybersecurity review process and discusses the implications of the Measures for foreign companies doing business in China. Findings The Measures impose an obligation on CII operators to apply for a cybersecurity review when they intend to procure network products and services that present or may present a national security concern. Such review will focus not only on national security and data leakage concerns, but also on supply-chain security concerns. The cybersecurity review will likely further the decoupling between China and the US. Practical implications While the Measures are not formally intended to discriminate against foreign products and services, the promulgation of the Measures will have a significant impact on foreign companies that supply network products or services to CII operators in China. Originality/value Practical guidance from lawyers with extensive experience in advising Chinese, US, European and other companies on laws and regulations related to competition, cross-border investments, joint ventures, strategic alliances and international trade matters.

China's state restructuring will have enduring impact

2018 ◽  
Keyword(s):  
Interest Groups ◽  
Foreign Aid ◽  
Content Type ◽  
Doing Business ◽  
Rubber Stamp ◽  
State Restructuring ◽  
The World ◽  
Business In China ◽  
People's Congress ◽  
Powerful Interest

Subject Reforms and appointments announced at the National People's Congress. Significance A massive restructuring of China's bureaucracy was announced at the annual meeting of China's rubber-stamp parliament this month, where a new cohort of leaders was also promoted to key cabinet positions. Impacts Several new cabinet appointees have international experience, which may improve China's ability to engage effectively with the world. Consolidating foreign aid under a new agency could result in more joined-up policy, with more powerful advocates. Doing business in China could become easier with a reduction in the number of agencies firms to deal with. Consolidating ministries into larger units could create more powerful interest groups able to assert their own agendas. If consolidated government organs can better tackle pollution and food and drug safety, this would help ameliorate major public grievances.

Party will reassert control over business in China

2018 ◽  
Keyword(s):  
Communist Party ◽  
Chinese Communist Party ◽  
Direct Control ◽  
Business Decisions ◽  
Content Type ◽  
Foreign Companies ◽  
Party Control ◽  
Business In China ◽  
The Government ◽  
Enterprise Reforms

Subject Communist Party control over private businesses. Significance The Chinese Communist Party sees itself as a 'vanguard party'. That is, it governs by leading other social groups, including the government and private enterprise. Reforms over the years have withdrawn the government from direct control of many industries, but the Party is reasserting control behind the scenes. Impacts In the business sector, control by the state is being replaced with control by the Party; enterprise is not an independent sector. Large private sector firms such as China's ICT giants are subject to the influence and occasional control of Party groups. Party infrastructure in foreign companies is growing, and the Party may take a closer look at business decisions.

China’s Export Control Law enables trade retaliation

2020 ◽  
Keyword(s):  
National Security ◽  
Export Control ◽  
Control Law ◽  
Legal Basis ◽  
Dual Use ◽  
Export Controls ◽  
Content Type ◽  
Foreign Companies ◽  
Trade Retaliation ◽  
Comprehensive Framework

Significance It establishes a comprehensive framework for restricting export of military and dual-use products and technologies on national security grounds or for public policy reasons. It creates a legal basis for mandatory licensing or outright prohibition of the export of products, services or technologies based on their features, their end-users and end-uses, and geographical destinations. Impacts Export controls will help to maintain the international competitiveness of Chinese firms as their technological capabilities advance. Foreign companies may find themselves under investigation in China for acts they perform elsewhere. The law covers transportation, so shipping companies may need to reconsider their routing decisions.

Diversity and consumer dispositions towards foreign countries in an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aybegüm Güngördü Belbağ
Keyword(s):  
Social Identity Theory ◽  
Structural Equation ◽  
Emerging Market ◽  
Conflict Theory ◽  
Content Type ◽  
Consumer Ethnocentrism ◽  
Foreign Companies ◽  
Foreign Products ◽  
Realistic Conflict Theory ◽  
Antecedents And Consequences

PurposeThe current study builds on social identity theory and realistic conflict theory aims to identify the relationships amongst consumers' ethnocentrism, animosity, discomfort with differences – a factor of universal-diverse orientation (UDO) – and reluctance to purchase German (RELG) and French automobiles (RELF) in the Turkish automobile market which is dominated by foreign brands.Design/methodology/approachEmpirical data were collected via face-to-face surveys from 400 respondents in the emerging market Turkey. Structural equation modelling was employed to examine the direct and indirect effects between the variables.FindingsThe main predictors of the RELG are consumer ethnocentrism, discomfort with differences and economic animosity towards Germany, respectively. Furthermore, RELF in the Turkish market is positively affected by consumer ethnocentrism, war animosity towards France and discomfort with differences, respectively. Discomfort with differences mediates the relationship between consumer ethnocentrism and RELG and RELF.Practical implicationsInternational collaborations with local manufacturers have huge strategic impacts when establishing reliable relationships with Turkish consumers. Foreign companies can initiate socially responsible projects that will relay the message of similarities between cultures to decrease perceived cultural differences. Highlighting the similarities of Turkish consumers with a foreign company in promotional campaigns will be much beneficial.Originality/valueDespite there are many studies regarding antecedents and consequences of consumer ethnocentrism, extant research overlooks the effect of animosity on this concept. Additionally, studies examining UDO in the marketing literature are scarce. This paper integrates UDO, consumer ethnocentrism, animosity and reluctance to purchase foreign products in one study.

Supply chain management practices and intellectual property protection in China

2016 ◽  
Vol 36 (2) ◽  
pp. 135-163 ◽  
Author(s):  
Lawrence D. Fredendall ◽  
Peter Letmathe ◽  
Nadine Uebe-Emden
Keyword(s):  
Return On Investment ◽  
Structural Equation ◽  
Management Practices ◽  
Small Sample Size ◽  
Small Sample ◽  
Equation Modeling ◽  
Great Effort ◽  
Content Type ◽  
Doing Business ◽  
Business In China

Purpose – The purpose of this paper is to investigate the strategy used by German Mittelstand companies to achieve a profitable business in China. It explores how those firms seek to reduce their risk of entry into this market. Design/methodology/approach – Survey data were gathered over the phone from individuals in the companies who were identified as knowledgeable contacts. Their responses were then analyzed using descriptive statistics and structural equation modeling. Findings – German Mittelstand firms that hire Chinese nationals in China obtain market knowledge and a higher return on investment than others. German managers’ efforts to understand the Chinese cultural norms increased the firm’s unwillingness to share information with others. This was probably because their concern about protecting their competitive secrets increased, so they shared less information with suppliers, which decreased their return on investment. Research limitations/implications – First, the small sample size limited the analysis. Second, there was low inter-rater reliability on multiple items, so these responses could not be analyzed. There is a need to further validate the survey, and obtain a larger sample to analyze alternative models. Practical implications – This suggests to the practitioner that while it may be relatively easy to start a manufacturing business in China, it requires great effort to manage their risk of losing corporate secrets to their competitors in China. Originality/value – This paper provides a unique set of data from practicing managers about the risks and gains from doing business in China. This data can be of use to both researchers and to practitioners and it provides a foundation to examine how the risk of losing proprietary knowledge to Chinese competitors affects business.

From boycott to product judgment in the coronavirus era: Chinese products cases

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moez LTIFI
Keyword(s):  
Structural Equation ◽  
Brand Image ◽  
Equation Modeling ◽  
Local Market ◽  
Health Crisis ◽  
Content Type ◽  
Foreign Companies ◽  
Foreign Products ◽  
Foreign Brand ◽  
Product Judgment

Purpose This study aims to explain the boycott of Chinese product during the COVID-19 crisis. Specifically, this paper attempt to empirically test the influence of boycott on the image brand and foreign product judgment, as well as to testing the influence of brand image on the judgment of these products. Design/methodology/approach Data was collected from a stratified random sample (N = 300) of students and was analyzed by using the structural equation modeling method. Findings The results show that the boycott negatively influenced the brand image and valuation of foreign products. Also, empirical results confirm that the brand image of foreign products positively influenced consumer judgment. Practical implications The success of foreign products is because of a combination of adaptation and standardization strategies for foreign companies in a local market to resist ace to unexpected economic conditions. These strategies allowed foreign products to penetrate diverse markets and not to be considered as a “foreign” brand which must be boycotted even in health crisis. The internationalization of companies and the opening of subsidiaries in the targeted countries can be considered as a solution for them so that their products will not be boycotted by consumers and consider them as national products. Originality/value Although with the existence of several studies on the boycott of foreign products, little attention has been paid so far to assess its interactions in times of health crisis such as COVID-19 crisis. This study contributes to the existing the literature with a research model based on two theories. This study leads to a better understanding of the role of boycotting foreign products and its impact on the brand image of these products and their judgments by consumers. On the other hand, this study tested the effect of branding on the judgment of boycotted products. Indeed, no study has so far examined the influence of consumer boycotts on the brand image of boycotted products. The authors have already responded to this shortcoming by adding additional tests for verification, robustness and validation of the results obtained.

Casting the Ubiquitous Net of Information Control

2010 ◽  
Vol 2 (1) ◽  
pp. 53-70 ◽  
Author(s):  
Zixue Tai
Keyword(s):  
Self Regulation ◽  
Legal Framework ◽  
The Internet ◽  
Chinese Society ◽  
Chinese Government ◽  
Historical Evolution ◽  
Information Control ◽  
Foreign Companies ◽  
Online Business ◽  
Business In China

Alongside the rise of the Internet as a pivotal economic and cultural force in Chinese society, the Chinese government has implemented a two-tiered strategy in dealing with the great potential and underlying risks associated with the network era. This paper offers a critical, in-depth overview of China’s state-orchestrated Internet surveillance apparatus from the Great Firewall to the latest Green Dam project. The author examines the conceptual and historical evolution of the Golden Shield program and analyzes the legal framework through which official regulation is justified or rationalized. Next, the author examines the prevalent practice of industry self-regulation among both Chinese and foreign companies engaged in online business in China. The paper ends with a discussion of the aborted official effort of extending content control to individual computers with the Green Dam Youth Escort project.

US companies in China face more challenges

2021 ◽  
Keyword(s):  
Personal Information ◽  
Content Type ◽  
Doing Business ◽  
Self Sufficiency ◽  
Data Flows ◽  
Compliance Requirements ◽  
Market Opportunities ◽  
Business In China ◽  
Impact Data ◽  
The Impact

Significance Together with the Personal Information Protection Law passed last month, it imposes significant data protection compliance requirements on the corporate sector. These will impact data flows between China and the outside world, adding to the challenges that US companies now face when doing business in China. Impacts China's drive for technological self-sufficiency will increasingly limit market opportunities for US companies. State media's negative coverage of US businesses in China is an indication of growing protectionist sentiment. Instances of US firms moving supply-chain operations out of China are rare and are driven primarily by rising costs. An upcoming US Treasury review of the impact of sanctions could see other tactics used against China, with business implications.

Policy in China still puts growth before deleveraging

2018 ◽  
Keyword(s):  
Central Banks ◽  
Foreign Banks ◽  
Chinese Government ◽  
Gdp Growth ◽  
Medium Term ◽  
Content Type ◽  
Rating Agencies ◽  
Debt Burden ◽  
Producer Prices ◽  
Business In China

Subject Growth and deleveraging in China. Significance China will have to sacrifice a portion of its growth if it wants to reduce its dangerous debt burden. Reducing credit growth will almost inevitably lead to an even higher reduction in GDP growth. This is a price the Chinese government is not yet prepared to pay, but it could be forced to act in the medium term if it wants to avoid a financial crisis. Impacts Investors, traders, central banks and governments should prepare for continued GDP growth, but a rising risk of a sharp slowdown. Rating agencies should remain sceptical regarding the government’s campaign against leverage and risk. Foreign banks wanting to increase their business in China must interpret government statements cautiously. Producer prices have risen since late 2016 after a spell of deflation, boosting profits; this will continue, helping them pay their debts.

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