What are common causes that lead to business restructuring in China?

Causes that lead to business restructuring may be internal or external to the business itself. Oftentimes, business owners make the mistake of assuming that the business model of the parent company at home will share the same success in China. However, without first testing the waters or consulting an expert, a foreign company may not know whether its plans are suitable or feasible. Furthermore, since having established the business, business conditions may have changed. Given rapid economic development, labor costs may increase, tax incentives can be removed, or a once profitable venture may no longer be profitable due to shifts in consumer preferences. For these reasons, business owners may decide that the original business structure is no longer suitable and therefore pursue adjustments through restructuring.