Future-proofing your China business "" what Xi Jinping means for you

China is set on securing its place in the global hierarchy as it transitions from an economy dominated by manufacturing and exports to one led by technology and services. To this end, the administration of President Xi Jinping has brought in a legal and policy framework that fundamentally alters the landscape for foreign businesses.

An unprecedented anti-corruption drive, the China cyber security law, and policies such as Made in China 2025, are some of the key changes instituted since Xi took over 5 years ago. China is increasingly a place where companies are expected to operate according to promulgated regulations or suffer penalties for non-compliance, where enforcement has been sudden and rapid (dawn raids are case in point). Foreign companies are likely to face a more aggressive regulatory enforcement environment and decreasing access to the China market. At the same time, companies can no longer focus government relations merely on gaining market access, relying on a retired Ministry of Commerce official sitting in the corner office. Strategies used years ago when entering China will not work now.

China is still an opportunity, but the rules of the game have changed forever. The coming phase of China's development is going to be highly disruptive and some businesses will not survive. What steps should foreign multinationals take to future-proof their China business?