Thoughts about Shanghai and the study trip, lessons learned.

Everything is changing in Shanghai, where there used field,  in just two years can be rising a new city, skyscrapers and highways are built in a few months, everything goes very fast in this city that gives the feeling that tomorrow will wake up different than today.

Its streets have the same contrast and feel of change, just around the corner can give the feeling of having gone 20 years back or forward in time, the contrast between the technological infrastructure and more traditional lifestyles.

An example of this contrast is the change in its demographic and family structures, recently the one child politicy was introduced, which only allows each family to have one child, having to pay more taxes for the following, it has meant a change in the country’s demographic trend, flattening its population pyramid and tending to invest it, face these changes is one of the great challenges of China in the near future. Adding to this, the economic development of China, growing with really high rates and which forecast to maintain at least about 6% growth in the coming years, resulting a global growth engine that tends to lead the global economy in the future.

One of the factors that allowed this growth is the foreign investment in the country, all the big companies and the best global competitors want to be present there and be part of that growth, however there is one detail that complicates the investment in this country, the difficulty of bringing back capital or investment to the country of origin by the politics imposed by the chinese government, although it seems clear that if the Chinese government wants to lead the global economy, will make an opening to the global capital markets not too long a period.

Consider a company that wants to introduce in China the challenge is great and the planning must be good if you want to get it, perhaps one of the easiest ways to do it is to find a Chinese partner for help you in this process, especially in the relationship with local governments, as they concentrate a large authority in their area, this is logical due to the large size of the country and the need for smaller government units to legislate. If you would introduce your business in China, you cannot expect that China suits you, you will have to adapt your  products and business structure to the customs, likes and mechanisms of the country.

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