Research & Analysis

A company seal, or chop, is integral to the administration of a company and the key to legally authorize documentation in China. An electronic chop– the digital version of its physical counterpart– can be used for online transactions. However, electronic chops are susceptible to misuse, which can have severe financial and legal implications.

By Heidrick & Struggles As mobile technology, constant connectivity, and data analytics become increasingly embedded in the fabric of daily life, few businesses have been left untouched. Digital disruption—the changes that result from applying new technology to goods or services—is not limited to digital natives such as Google or Uber. Traditional industries from manufacturing to banking […]

While cybersecurity challenges have long affected foreign companies operating in China and raised concerns about discriminatory treatment of foreign products—particularly China’s recent push for “secure and controllable” technology—the beginnings of this trend can be traced to the early 1990s with China’s adoption of the multi-level protection scheme (MLPS). Today, companies describe an increasingly restrictive environment that is squeezing their market share as regulators increasingly link national and cybersecurity to government procurement, data management, and IT system integration. This squeeze is particularly evident in China’s implementation of MLPS.

Foreign businesses are adjusting their long-term China strategies as they evaluate how local governments implement the RMB 40 billion-backed national One Belt, One Road (OBOR) development policy. As provincial and city governments release additional details about project funding, companies are seeking project bids and reorienting their sales practices to align with OBOR objectives.

As Chinese consumers gain greater spending power, their preferences and concerns are exerting greater influence on the market. Food safety has become a particular focus for Chinese consumers, and several recent high-profile food safety investigations have heightened public awareness and concerns on this front.