Rule of Law an Ethics and International Marketing in China

Rule Law and Ethics and International Marketing in China
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Abstract
The paper analyzes the rule of law and ethics in the Chinese market, particularly for international businesses. Therefore, the paper identifies the legal system governing the country and whether it was influenced by colonization. Further, the paper will identify a socio-economic challenge in China, identifying market entry strategies, with advantages and disadvantages of each method. Appropriate advertisement practices are also identified for the chosen problem, recommending legal compliance and social and ethical responsibility for companies, acknowledging the unique cultural, religious, and societal values.
Keywords: China, economy, legal, market, international, business.
Rule Law and Ethics and International Marketing in China
Over the years, China has been an epicenter of global business, emerging as a force in the international economy. The economy has adopted aggressive efforts and revitalized its market. Gaining access to international markets is challenging because businesses must overcome legal, regulatory, and cultural barriers. The dynamics of the Chinese market are challenging despite tremendous economic progress. China is a transitional economy that is not fully open to international businesses. It analyzes China's economy, especially the legal frameworks, legal requirements for a business to access China markets, market screening, and entry into Chinese markets.
China’s Legal System
International businesses experience huddles when establishing operations in China market, with diverse face legal and regulatory challenges. China is an emerging market with relatively weak and increasingly dynamic regulatory frameworks (Froese et al., 2019). The nation uses a civil legal framework that hinges on protectionist policies, with an intent to protect or regulate how businesses are conducted within the country. The civil legal system relies on a written constitution and codes that govern the actions of regulatory institutions. Several regulatory aspects include environmental regulation and pollution prevention, capital and financial sector regulation, housing and real estate regulation, labor markets control, and media control (Evans, 2019). The legal landscape imposes asymmetric effects where local and central governmental actors exploit local institutional volatility and regulatory influx to favor domestic firms. Geopolitical positions also influence Chinese regulations against multinational firms. Government intervention is used to favor domestic firms impose challenges on international firms while favoring local companies.
Before investing in specific sectors, multinational firms must get particular administrative interventions for foreign investment to gain access to specific industries (Ünekbaş, 2021). However, China accords national treatment to the foreign investments that are not contained in the negative list. The Chinese economy and business protectionism can be traced to colonial times during the opium trade. The phenomenon has defined China’s economic trajectory post-colonialism era. The proponents of world-systems theory argue imperialism and colonialism produced economic, social, and political disruptions, distortions, and instabilities that make it challenging to achieve successful modernization with more accessible markets, increased traded liberalism, and fewer regulatory frameworks (Wahed, 2016). These observations explain the protectionist policies encapsulated in Chinese legal systems. The current legal systems result from colonial implications where China is seeking expansionist trade policies while limiting an outflow of resources.
Socio-Economic Challenge
China has advanced significantly in many spheres, with the emergence of industries. Therefore, the Chinese market is saturated with many cheaper products compared to other parts of the world. As the nation continues to open its economy to external investors, the condition provides a unique opportunity to offer a digital service for manufacturers to export their products. The export service requires a China-based company to liaise with firms in other parts of the world (Xie & Zheng, 2019). Offering export services will ensure that industries are ready to find a market for manufactured goods in other parts of the world. There are gaps in China’s export business that have grown as more industries produce mass products. Market screening is required to identify challenges before entering them to address the challenge (Xie & Zheng, 2019). Notably, market screening is critical for investors who identify the viable business and locality for business. It allows expansion and acquisition strategies by looking at well-performing competitors or viable niches to focus on. The exporting service will focus on purchasing products from local factories and selling them to other countries.
Entrepreneur to Enter the Market
As noted, China has protectionist policies that are based on a civil law system. While the country remains a protectionist, entrepreneurs can access the market by establishing partnerships with local companies. In order to avoid the huddles, it is vital to create an exporting through a Hong Kong-based distributor. This requires setting up a joint venture with Chinese partners or domestic firms. It is hard for entrepreneurs to enter the market if they lack partnerships with local businesses or companies.
Market Entry Methods
The market entry via a Hong Kong Distributor is the most effective, optimal, viable, and quickest way to enter China. However, it is the least desirable overall market penetration because market access to more parts of China remained restricted when entrepreneurs entered through...