Running Head: CROSS-CULTURAL MANAGEMENT DIMENSIONS 1

Cross-Cultural Management Dimensions - Case Study: Foreign Companies in China

Under Attack

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The current by the China republic of setting strict measures on foreign investors is

becoming one of the most challenging moves. The move is making most foreign firms find it

hard to continue operations in the region. In most cases, the cost of operations is also

increasing, making the once favorable investment environment unbearable. Different strict

measuring including cessation of operations in China market, has been evident. The current

strategy by the Chinese government to regulate the foreign investors in their market is a

significant barrier to their competitive edge being a threat to the home companies. There is

much to discover in the trade and political war on European and American companies in the

Chinese market.

1.     What factors do you think are behind these events? Do some research to find out

whether there have been more such problems since this writing. Is it just American

companies that are being targeted?

The current conflict on international firms losing the competitive market advantage in

China is ideological and politically initiated. The main issue in the Chinese market is due to

political and ideological differences in China, American and European states at large. The

current problem is a significant barrier to establishing the necessary measures that would help

develop free-market systems. The Chinese government seems to be working against the

world trade organization agreements that allow intermediate business processes globally

(Browne & Burkitt, 2014). political goals between china and other economic superpowers

are the leading cause of the conflict. It may take longer to quench the current situation

modestly. The need to develop better strategies in the Chinese market continues to be a better

way to develop the necessary corrective trade measures.

The market war is not only targeting American companies but other regions of

interest. The allies of America are a primary target of the attacks to neutralize the evident
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conflict between the two countries. China-American trade war has been the primary initiator

of the current situation that has been before the writing of the article and continuing even

after the article report (Burkitt, 2014). It is necessary to develop better strategies through

which every move that the American businesses make is not a spy to the Chinese government

in any way. The trade war between America and China is the source to multinationals from

Europe and other regions facing the same verdict as those from America. It is a strategy that

China is taking due to the fear of being a weak point the American government would use to

attack the Chinese market.

2.    What can firms currently operating in China, or considering investment there, do

to lessen the likelihood of these problems for their managers?

The primary strategy to reduce the conflict with the Chinese bureaucracy is operating

in line with the set regulations and cultural practices (Deresky, 2017). Failing to work

following the region's political and economic requirements will lead to conflicts that have

ensued with major multinationals already exiting the Chinese market (Browne & Burkitt,

2014). It is easy to contain the current platform's situation, which will reduce the present

struggle. The adherence to the Chinese government's needs will make it easier to build

confidence with the operating systems.

The current attacks of foreign companies in China are a significant barrier to

investment freedom and economic growth. The China-American trade war is the primary

cause of the standoff in the area. Setting up better cultural and regulatory adherence strategies

for foreign companies venturing into the Chinese market will be a way to solve the problem.
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References

Browne, A., & Burkitt, L. (2014). "U.S. Firms Feel Unwelcome in China, According to

Survey; U.S. Companies Say They Have Become Targets of China's Antimonopoly and

Anticorruption Campaigns." Wall Street Journal. Retrieved 10 August 2021.

Burkitt, L. (2014). "China's Use of Antimonopoly Law May Violate Its WTO Commitments;

U.S. Chamber of Commerce Report Says China's Use of Its Antimonopoly Law Has

Been Subjective." Wall Street Journal (Online). Retrieved 10 August 2021.

Deresky, H. (2017). International management: Managing across borders and cultures. (9th

ed.). Pearson.