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Crisis Management in China

Crisis Management in China

The success of any business is a result of many factors, such as the investments in a certain project, the company’s business plan, the management of the company, the market request for the company’s products or services and many others. At times, small or large corporations may face the risk of crisis, as a result of internal or external factors. The way in which these crises are handled is crucial for the life of the company and, as such, it is important that the management of the company be prepared to face such challenges; our law firm in China can provide you with consultancy services necessary to overcome crises that may appear in a company throughout time. 

Crises in a Chinese company 

company in China may face a variety of crisis, which will deal with the financial aspects of the business. A crisis may appear as a consequence of faulty manufacturing (if the company provides various goods or products on the market) or bad public relations. If the employees (at the management or executive levels) are not satisfied with the working conditions, they may put pressure on the company to improve their salaries or receive new benefits.

Throughout the life of a company, crises may appear due to external factors, such as new regulations imposed by the local legislation or socio-economic context of the country in which the company has set its main officeOur team of lawyers in China can offer you assistance and consultancy services if your company is experiencing a crisis

Dealing with a crisis in China 

Regardless of the crisis experienced by a company, the management and the consultancy service team must gather information on the event and estimate possible results and solutions to the crisis

It is necessary to understand the origin of the event, the claims brought to the company (by employees, local authorities, mass-media). The company should take action on this problem in respect to the local legislation

It is important to take immediate measures to which all the parties implied must settle to and to have a rapid action and response to the situation. It is recommended that, when a company is dealing with a crisis, to acknowledge this fact in order to demonstrate transparency, which is vital for the clients and partners of the company

A study from 2013 revealed that in the cases of companies involved in a crisis, the company’s management will issue an official response within 21 hours after the event became public. 

If you need further information about the crisis management in China, please contact our team of Chinese lawyers for consultations.