I don't usually conduct business but when I do, It's responsibly.

China is a major contributor in offshoring affairs. They are primarily involved in software work, application development, testing, quality assurance, and localization. The State Council of the Chinese government has created 19 software parks under its “Torch Programme” (Sourcingmag). This plan had a variety of purposes; such as “[Promoting] the development of the country with science and education”, carry out the general policy of reform in order to open up to the outside world, bring into the light China's scientific and technological forces, take market for orientation, promote the commercialization of new high tech achievements, industrialize new high tech goods and internationalize new high tech industries. In my opinion I believe China wants to get more involved with the world economy and is doing so through electronics. Even though the business industry in China is very cheap, it is inevitable that America’s increased influence will change China’s economic and political environment.

Most companies get involved with offshoring in China due to their “low labor costs, cheap raw materials and relatively low costs of transportation” (Diva).  They fail to realize that the more they do business with China, the faster they will catch on and adapt to what they do. This means that China won’t be staying cheap for long especially if they get to a point where they need to start making more money. China is already moving away from being a “command economy” to more of a “market economy”. This will make the business environment over there even more unstable. Western companies are also changing. They are adapting to the Chinese environment by considering and respecting their culture, values, and ways of business.

The Chinese government views outsourcing as a preferred mode for “attracting, demanding, and gaining access to technologies from foreign firms as the ‘cost’ of entering the Chinese market.” But in order to get these aspects, both countries have to know the regulations required to do business with each other. Most countries, when outsourcing to China, don’t read their regulatory requirements and therefore, may end up not being allowed to do that certain kind of business over there. This is a huge problem with outsourcing to China because it’s like the other countries are taking advantage of them just because of their cultural business differences.

I completely understand that China is affordable for businesses overseas but companies have to be very careful. When a person sees a good deal, what do they do? They go for it. When a strategically smart person sees a good deal, they seek out all the terms and hidden fees before purchasing anything. That is exactly what business companies need to do with China. They need to know the Chinese regulations forward and backward before conducting business with them.  

Outsourcing with China may be a good deal right now, but that can and will change in the near future. China is adapting to western ways more than people are seeing. Their way of business will also start adapting as well. Outsourcing may be good but it can also hurt businesses on both ends. Western countries can not follow China’s regulations and lose a lot of money. China can adapt so much to the western ways, that they also start avoiding reading regulations of other countries and therefore lose money. In my opinion, it is all about respecting each culture and knowing exactly what you are getting yourself into before you do it.   

 

 

Work Cited

"Offshore Outsourcing to China." Offshore Outsourcing to China. N.p., n.d. Web. 27 Mar. 2014. http://www.sourcingmag.com/content/offshore_outsourcing_china.asp.

Johansson, Cecilia, and Elisabeth Reischl. "Offshoring to China." Diva-prtal. Baltic Business School, 2009. Web. 27 Mar. 2014. http://www.diva-portal.org/smash/get/diva2:222631/FULLTEXT01.pdf.

"Publications." Offshore Outsourcing and Offshoring to China. N.p., n.d. Web. 27 Mar. 2014. <http://www.mofo.com/offshore-outsourcing-and-offshoring-to-china-11-15-2005/>.

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