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Challenges of doing business in Chinese digital market


European companies operating in China's digital space face various challenges, from growing competition and unequal treatment to regulatory burdens. In this blog article, we address some of these existing issues.

Existing Problems Facing European Companies in the Chinese Digital Space

1. Strict Internet Controls

The Chinese cyberspace environment is often difficult for foreign companies, as the strict internet controls can affect the performance of corporate networks. This makes it difficult to plan and maintain digital infrastructure and impacts business.

2. Harsh Business Environment

The environment can affect the decisions, processes, strategies and performance of any business. One of the issues facing European companies in the Chinese digital space is the lack of a level playing field and the increasing politicisation of the business environment in China. This could cause European companies to abandon their operations and investments in China.

3. The Coronavirus Pandemic

Like everywhere else in the world, the COVID-19 pandemic was a tough time for businesses and individuals. It caused immense damage to the world's second largest economy. Because of China's strict zero-covirus measures and their impact on the Chinese economy, many European countries are reluctant to do business there.

4. Protectionism

Protectionism, a government policy aimed at protecting domestic industry from foreign competition through import quotas, tariffs and other restrictions, makes it difficult for foreign companies to use digital solutions in the country.

Where Reverse Proxy Comes In

More and more companies are beginning to recognise the need to develop a reverse proxy. A reverse proxy not only serves to increase security and reliability (and thus protect the server from cyber-attacks), but also ensures a smooth flow of network traffic between clients and servers 

Our reverse proxy solution is an all-in-one solution that provides comprehensive security protection, load balancing, data protection and more, while complying with local regulations in China. So at the end of the day, you get everything you want without compromising your company's legal framework.

As a legally registered company with a large presence in China, W4 understands the complex legalities of the Asian region, especially as they relate to European companies.

Would you like to speak directly with our experts? Book a meeting with us.

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Tags: B2B Marketing China Marketing International Marketing Technology

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