China’s regulatory environment can be complex and constantly changing. Professionals experienced in government affairs can help foreign businesses navigate these regulations by keeping them up-to-date on new laws and regulations and providing guidance on how to comply with them.
Government affairs refers to the set of activities that businesses engage in to establish and maintain relationships with government officials and regulatory bodies. In China, where the government plays a significant role in business operations, government affairs can be particularly crucial to a companies success.
Building strong relationships with not only the central government but also with local governments should be prioritized since local government offices can have a significant influence on foreign companies’ operations beyond common areas such as investment approvals, customs clearance, and taxation.
Foreign companies often focus on managing government relations at the sub-national level, which includes provincial, municipal, district, and county levels. The work at this level tends to focus on compliance and implementation to ensure smooth daily operations at the company’s local facility rather than on policy development. By cultivating relationships with local officials, companies can increase the likelihood that they will have channels to use when specific problems arise.
It is essential for companies to identify relevant local officials and prioritize agencies and levels to allocate resources and be proactive in identifying where problems may occur in the future and monitor local policies and changes that could cause problems based on the companies location.
We can assist companies with their government relations by following up with different government bodies on project approvals and business licenses, allowing companies to potentially alleviate the long delays in securing necessary licenses and approvals. Conducting due diligence before new or additional investments are made to learn more about potential incentive packages that companies may be eligible to receive and how the local government interprets relevant policies and regulations. This can also ensure a continuous relationship once the deal is finalized.
By facilitating contacts between the company and government, we can support negotiations and minimize miscommunication among agencies and between agencies and the company.
Mitigating risk
Foreign companies operating in China face a variety of risks, including legal, reputational, and operational risks. We can help mitigate these risks by providing insights into China’s political and regulatory environment and advising businesses on how to navigate potential risks.
By building relationships with government officials for your company and complying with regulations, managing public policy issues and advocating for your business interests, we mitigate risk associated with government affairs and can help foreign businesses navigate China’s complex political and regulatory landscape to succeed.
