Licensing Challenges and Best Practices in China

For companies seeking to operate and expand in China, as in any market, numerous permits, approvals, and reviews are required before they can proceed. From selling products to creating new manufacturing facilities, these processes—often referred to generally as “administrative licensing”—are necessary steps to invest, expand and conduct commercial operations in China. While administrative licensing is a common process worldwide, China’s extensive, complex, and at times onerous licensing system at the central, provincial, and municipal government levels often results in significant delays, added costs, and lost revenue, while also creating reluctance among some foreign companies to increase investment in China.1