China has an ample environment to different business sectors. The official language of the country is standard Chinese, which is a derivative of mandarin dialect spoken by majority of Chinese citizens. Despite that there are very many dialects in china; there is only one written language. Most business people in china speak English except those who have a flair for Chinese language.
The form of government based in china is that of communists and it promotes atheism although there is a provision for freedom of religion for those who are willing. China is the most densely populated country in the world and in regard to this; there are severe childbirth rules with a restriction of only one child to every household.
The business environment in the Chinese mainland is different from that in Hong Kong in features such as trading and foreign investment laws, import and export control and taxation. The Chinese mainland has an ample environment in different business sectors. In the course of economic liberalization there has been revision of the foreign economic policy and trade regulations making it almost impossible for Hong Kong companies with intentions of starting business in the mainland.
China has a five year plan in which the government is devoted to create a harmonious society and their prime focus is on social justice and issues that affect the livelihood of most of its citizens. This is after realizing that the workers who do the hardest jobs and those which are risky are not normally covered by insurance and are lowly paid. The goals of the plan is ensuring use of labour contracts, improving labour dispute resolution mechanisms, and protecting the legal rights of workers, supervising the labour market and implementing the labour laws and regulations.
According to the China Business Review (2010), in the past, the government has been improving the rights of the workers. In relation to this the state council has been in fore front to ensure that directives to clear wages arrears for migrant workers who their legal status and inaccessibility to legal channels has led them to be abused. The problem of migrant workers not being paid for long periods of time because they are threatened of their legality is to be a problem of the past. Therefore there shouldn’t be worry as our company will secure payments for all services rendered in time.
In the past the government has been devoted to see to it that there is a contract between the employers and the employees. There has been an enactment that all employees that are under foreign owners should form unions and this is likely to favour the workers as major decisions will be made after consultation with the trade union representatives for example laying off of many employees (China Business Review, 2010). Also the provision has an amendment that if an employer and an employee disagree then the case should be resolved in favour of the employee.
Statistics have shown that foreign investors account for a small share of labour dispute cases this is because the investors tend to bring their international human resources practices and environmental health and safety standards which are superior to that of china (McKinsey Quarterly, 2006). This has enabled the foreign companies avoid problems with the locals. Also because the official language in china is Chinese, all foreign countries are requested to come with the top management who they will be able to communicate with well to avoid any misconceptions.
It has been noted that some provisions contravene the international practices in human resources management (China Business Review, 2010). Representatives of the foreign investors are conversing with the government to see to it that the contract based form of employment is readdressed to attract more investors into the country.