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The report can be used as a first guide if you are interested in business China: "If you are thinking of doing business with China but don't know where to begin." ...

The report can be used as a first guide if you are interested in business China: "If you are thinking of doing business with China but don't know where to begin."
This presentation has been made by China-Access, a China based consulting company to assist overseas companies to enter China market.

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    Business Scope China Business Scope China Presentation Transcript

    • Business SCOPE in China www.china-access.com
    • It can be used as a first guide if you are interested in busines China: “If you are thinking of doing business with China but don´t know where to begin”. Are you ready to setup your business in China? A big market with 1.3 billion people . The following presentation has been made by China-Access , a China-based consulting company to assist overseas companies to enter China market.
    • Index
      • Why China?
      • Country Brand Index
      • China Facts & Predictions
      • What do the worldwide entrepeneurs want about China?
      • Different corporate structures
      • Outsourcing
      • Ind. development zones, FTZ, Eco Cities
      • International brands in China
      • Appendix: ChinaAccess services
      www.china-access.com Index
    • “ China is confident, for China itself is a big market with 1.3 billion people, and is making effort to stimulate domestic demand. Under the financial crisis, China’s foreign trade is confronting with severe challenges, but China is taking positive measures to boost the growth of foreign trade, expanding exports and imports. The momentum of economic globalization remains. No country is able to find a solution to the financial crisis on its own, only joint efforts by all countries and deepening of cooperation can make an earlier recovery of the world economy. China will stick to opening up, and keep enhancing trade and economic cooperation with foreign countries. China values the important role played by foreign business in advancing China’s economic development and creating more jobs. While encouraging China’s business to expand overseas investment, China, as always, welcomes foreign business to invest in China, and vigorously creates favorable investment environment for them, and helps them to solve the problems they encounter.” Commerce Minister: Chen Deming with the last meeting (March, 2009) with representatives from USA and European business at the High Level Forum on China Development. Source: Ministry of Commerce Website (http://www.english.mofcom.gov.cn) www.china-access.com
    • www.china-access.com “ I am in a flat world. The world become flat. Wherever you are, whatever you do, this is the time of dreams come true as long as you have ambition.” Haitao Qi, CEO Devott Ltd. “ If you are not in China, you are really not in the game!” C. Eltschinger “ China will continue to be favorable for foreign investors”. Mr. Chen Deming, Minister of Commerce of PRC, March 2009 “ China Has the Strongest Ability to Withstand the Crisis in the Emerging Countries ”. Standard & Poor’s – Feb, 2009
    • Why China? Fastest Growing Economy Economic Reforms Population Market Opportunity
      • China is now the
      • 2nd largest economy
      • in the world and the
      • last grows have been
      • at a 10% rate annually.
      • A deep and gradual
      • economic reform
      • gives way to new
      • business pportunities.
      • Welcome to the
      • “ world’s biggest
      • market” with more
      • than a 1.3 billions
      • consumers.
      • A technological
      • stronghold in the
      • country can in time
      • become a beachhead
      • for future expanded
      • business development.
      www.china-access.com
    • Why China? Human Resource Availability Geo-Political Diversifications Cost Advantage Vendor Diversification
      • The university system
      • in China is projected to
      • produce 5m graduates
      • by year (more than
      • doubled in the last ten
      • years).
      • Spreading offshore
      • activities to different
      • countries helps
      • protect from political
      • and business risk.
      • China’s cost are
      • typically 20-30%
      • lower than India
      • and more resistant
      • to the kind of wage
      • inflation and
      • employee turnover.
      • .
      • Mantain more
      • control, foster
      • competition and
      • spur performance
      • by working with
      • more than one
      • outsourcing vendor.
      www.china-access.com
    • Source: Country Brand Index (www.countrybrandindex.com)
      • China holds the 1st. position:
      • Rising star
      • Most impressive last year
      www.china-access.com
    • The economy of the People's Republic of China is the second largest in the world after the US with a GDP of $10.21 trillion (2006) when measured on purchasing power parity (PPP) basis. It is the fourth largest in the world after the US, Japan and Germany, with a nominal GDP of US$2.527 trillion (2006) when measured in exchange-rate terms. China facts China has been the fastest growing major nation for the past quarter of a century with an average annual GDP growth rate above 10%. China's per capita income has grown at an average annual rate of more than 8% over the last three decades drastically reducing poverty, but this rapid growth has been accompanied by rising income inequalities. The country's per capita income is classified as low by world standards, at about $2,000 (nominal, 86th of 179 countries/economies), and $7,800 (PPP, 107th of 179 countries/economies) in 2006, according to the IMF. www.china-access.com
    • China facts www.china-access.com
    • Economic Map of China www.china-access.com
    • www.china-access.com
    • Overview
      • China’s real economy has been hit hard by the global crisis, but has been holding up.
      • Although China’s growth is set to slow, it is still likely to outgrow most other countries.
      • There are useful synergies between China’s short and medium term policy objectives.
      • Financial sector reform will help.
      Recent Economic Developments
      • The global financial and economic crisis intensified in the fall of 2008.     
      • The adverse impact on output and trade is very large and geographically broad-based. 
      • There are useful synergies between China’s short and medium term policy objectives.
      • The slowdown is adding further downward pressure on inflation.
      • Global financial markets are likely to remain strained during 2009.
      • Risks and uncertainty about the international outlook are unusually large. 
      • We expect private consumption growth to decelerate, but to remain significant.
      • China’s economy is likely to receive support from the expected global pick up if and when it occurs late in 2009 or in 2010. .     
      Economic prospects and risks Economic policies
      • China has important short, medium, and long term challenges.
      • With the short and medium term objectives overlapping, the medium term objectives need to shape economic policies in 2009.    
      • Looking ahead, there may be less need for investment-oriented stimulus.
      www.china-access.com
    • Some predictions about China China will become a power of the size and influence of the US in the next few decades. www.china-access.com The sophistication of China’s economy is advancing at even faster pace than its economic growth. The rapid acceleration of urbanisation will be continue, around 1 billion Chinese will live in cities by 2030. China will probably be biggest world economy before 2015.
    • Why do the worldwide entrepeneurs want about China? www.china-access.com
    • Why do the worldwide entrepeneurs want about China? www.china-access.com
    • Buy products Outsource services Sell products/ services Act locally Since many decades ago the world is buying directly from China several products Made in China . The new times, Services in China. With the Government promotion and the privates companies development now the world can outsource their services in China. The China´s door is opening increasingly so many companies worlwide are now selling their products and services to China. Next business generation. Thousands of companies worlwide are interested in a China “big market” development. Act locally. www.china-access.com
    • Barriers – Entry to China Language Culture Government Distrust www.china-access.com Language – the first and biggest barrier for foreign companies to enter to China. Government – unfamiliar with the central & local government and Chinese laws & policies. Culture – conflicts of western and eastern cultures set another barrier for business development in China. And the distrust ensued makes it harder for foreign companies to enter and develop in China market. According to World Bank’s report, from 2006 to 2010, 30% of the 250 billion U.S. dollars of oversea investment to the developing countries would go directly to China. Currently China has approved the establishment of over 500.000 foreign-financed enterprises and has used 270 billion U.S. dollars of foreign funds. Those foreign-funded enterprises import over 560 billions U.S. dollars of goods annually.
    • www.china-access.com
    • Different corporate structures Representative Office Joint Venture Wholly Foreign Owned Enterprise (WFOE) www.china-access.com Branches. PRC Holding Companies
    • Representative Offices Are often the first step taken by foreign companies when establishing a permanent presence in China.
      • Rep. Offices can build relations and provide technical support.
      • They can not transact business directly in China.
      • Are subject to registration requirements.
      • Registration is generally valid for three years with renewal terms.
      • It’s necessary to establish a physical office space in China.
      www.china-access.com
      • Permitted :
      • Conduct data collection and research on local market.
      • Liaise with local contacts, Chinese government and commercial organisations.
      • Coordination of warranty and after-sales services.
      • Not Permitted :
      • Sign contracts on its own behalf.
      • Directly engage in business for profit.
      • Collect money or issue invoices for products or services.
    • Joint Venture www.china-access.com Most common businesses for a foreign firm with a local Chinese partner.
      • Different shapes depending of the ways of contributions: Ownership, Financial contributions, Management, the level of participation, the contribution of technology.
      • JV are governed by the Law of the PRC and relevant implementing regulations.
      • Advantages :
      • Only option, as industry is restricted.
      • Quick establishment/contribution of existing facilities.
      • Local expertise.
      • Disadvantages :
      • Inflexibility
      • Difficulties in expanding investment.
      • Differing management styles.
      • Exposure of intellectual property.
    • Wholly Foreign-Owned Enterprise www.china-access.com This kind of enterprise is 100% owned by a foreign company or companies.
      • The foreign investor has complete control over the business, direction and profits of the enterprise.
      • WFOE allows the foreign investor to issue invoices and receive revenues in RMB (local currency).
      • Are operated by the Law of the PRC on Enterprises Operated Exclusively with Foreign Capital, and relevant implementing regulations.
      • Advantages :
      • Management control.
      • Easier to terminate.
      • Simpler establishment procedures.
      • Protection of intellectual property.
      • Disadvantages :
      • Lack of experience and local connections.
      • May not be listed on stock exchange.
    • Branches www.china-access.com Are used by certain industries: banking, insurance and shipping.
      • The branches are not separate legal entities in China.
      PRC Holding Companies If the conditions are satisfied, foreign investors may establish holding companies in the PRC to hold equity interests in foreign investment enterprises.
      • A PRC Holding company may trade the goods manufactured by its investees.
      • Also may render some services: marketing, staff recruitment and consultancy.
      • The PRC Holding tax separately with its subsidiary companies.
      • The next step could be a “Regional Headquarter”.
    • Outsourcing China has turned its attention to the lucrative offshore services market and is keen to close the gap between India economy, the world leader of outsourcing. The clearest indication of the Chinese Government's enthusiasm to grab market share in the world outsourcing market is the liberalised regime The initiative targets specific sectors have been software; financial services; film and television; innovation and design; specialist services, such as accountancy and legal services; and commerce. The first cities to be granted these new freedoms (initially for a five-year period) were Dalian, Chengdu, Shanghai, Shenzen and Xi¡¯an, followed this year by Beijing, Hangzhou, Jinan, Nanjing, Tianjin, and Wuhan. This has permitted the establishment of new China Service Outsourcing Zones, in which outsourcing is encouraged and that provide subsidies and tax breaks for outsourcing suppliers to establish and expand their activities. www.china-access.com
    • Outsourcing Cities and Parks Right until the end of July, 2008, MOC of China has successively authorized 16 cities and 4 national demonstration zones (includes Suzhou Industrial Park etc.) in 4 groups as the base cities for China’s service outsourcing industry. Now, there are around 50 outsourcing parks in China, with whom we have established and maintained good cooperation relationships. Thus we are able to offer our clients the researches and evaluations on these parks regarding their basic information, preferential policies, taxation and HR storage etc., so as to help them to select the most competitive area. Beijing Dalian Chengdu Shanghai Wuhan Xi’an Tianjin Shenzhen Nanjing Jinan Hangzhou Ha’erbin Chongqing Changsha Hefei Guangzhou www.china-access.com
    • Top 10 Service Outsourcing Providers in China 2008 www.china-access.com Source: Top 50 Service Outsourcing Providers in China 2008 www.devott.com Is an international consulting company integrated consulting, portal and outsourcing services. Taking "dedicated to the promoting of China outsourcing industry’s global competitiveness" as its responsibility and in virtue of its in-depth understanding of the global outsourcing industry and extensive industry resources of China’s outsourcing industry, Devott offers comprehensive outsourcing consulting, project management and industry research services to global outsourcers and suppliers on the basis of the Chinasourcing webstite ( www.chnsourcing.com ) which is the only portal website and e-transaction platform for China’s outsourcing industry.
    • With over 2.400 IT resources, a compre-hensive solutions platform, and mature delivery model. Is a specialized vendor of solutions, digital products and services with expertise in software technologies. Is a leading IT outsourcing service provider in China. The company has over 2.500 full time employees. Is a leading China-based provicer of global outsourcing services. Owns four global delivery centers around China. High-tech outsourcing company with broad business expertise and experience. Extensive global understanding. www.china-access.com Is one of the biggest call centers in China, with China’s biggest telecom operation company as the holding company. Is a high & new technology enterprise focusing on software, game & animation and service outsourcing.
    • The Who´s who in China Outsourcing Chinasourcing is the first consulting service provider dedicated to the sourcing industry in China. It has positioned itself as an outsourcing industry service provider (ISP) to capitalize on the historical opportunity of China’s economic transition from manufacturing to services, and fully leverage the transfer of global services into China and the outsourcing frenzy worldwide. Chinasourcing focuses on the outsourcing industry, and takes advantage of www.chnsourcing.com to deliver industry research, information, sourcing management, process optimization, business consulting, staff training, project intermediation and headhunting services to outsourcing clients and vendors. Chinasourcing rides the wave of China’s economic transition to services to build a bridge linking domestic and international business services. By consolidating the various resources at home and abroad, it has gradually become the flagship service brand in China’s outsourcing industry. Industry Website: Chinasourcing Website (www.chnsourcing.com) is the portal website of China’s outsourcing industry, a springboard by which overseas outsourcers enter China’s marketplace, and a platform of information release and project transaction in China’s outsourcing industry. The website is dedicated to creating the industry chains of information release, transaction platform, industry exchange, intermediary services and software products, and delivering outsourcing solutions. It is intended to become a bridge and link between outsourcing clients and vendors. www.china-access.com
    • Hangzhou High Tech Focus: High Tech, Software, IC, Telecom Equipment, Ecommerce Selected companies: Motorola, Alibaba, Handsome Electronics, Sunyard Nanjing New and High Tech Technology Focus: Electronics and Information, bioengineering, pharmaceuticals, new materials, aeronautics and astronautics. Selected companies: Ericsson Communications, Southern Telecom, Siemens, Panda Electronics, GE Appliance Co. Suzhou Hig-Tech Focus: Electronics and Information, precision machinery, bio-med, new materials. Selected companies: Motorola Electronics, Curtis Instruments, Harman Electronics, Ambow Software Co., Logitech, Siemens, Philips, Fuji Film, Canon Inc. Wuxi New District Focus: Micro electronics, machinery, bioengineering, chemicals, new engineering. Selected companies: Infineon Technologies, Bayer, GE Medical Systems, Kenmore Refrigeration Components. www.china-access.com Industrial Development Zones (*) (*) some IDZ as a presentation only
    • Industrial Development Zones (*) Shanghai Zhangjiang Hi-Tech Park Focus:IC, Water, software, information security, medical/pharmaceutical. Some clients: Glaxo Smithkline. Roche, Medtronic, SMIC, GSMC, GE China R&D. Nantong Focus: Chemical, electronic information, IC, telecom, port services. Some clients: Quanyong Electric, Zhongtian Optic Fiber & Devices. Shanghai Minhang Focus: High-tech, IT, precision machinery, photoelectric machinery. Selected companies: Coke, Pepsi, Mitsubishi, Unileber, Johnson&Johnson. Ningbo Focus: Semiconductors, biochem, electronic information, precision machinery. Selected companies: Exxon, Samsonite, Dow Chemical. www.china-access.com (*) some IDZ as a presentation only
    • Tianjin Economic-Technological Development Area Created 24 years ago with the approval of the Chinese central government, Tianjin Economic-technological Development Area (TEDA) is one of the first state-level coastal development areas opening to the outside world. Is one of 53 national High Technology Zones in China, designed for the efficient promotion of industrial high-tech development and production in the Country. An ample road network interlacing all parts of the Zone, which is stretching over a surface of 35 km2. United Nations Industrial Development Organization (UNIDO) listed TEDA as one of the most dynamic areas of China together with Shenzhen, Suzhou, Wenzhou, Shanghai Pudong and Xi'an High-tech Park.
    • Is the second-to-none interlocutor and partner in Xi'an for interested prospective investors of the high-tech industrial fields, in particular of Information Technology, Bio-pharmaceutical, environment-friendly, advanced material and process technology fields.
      • Industries strongly represented and/or promoted in XHTDZ:
      • Software generation and processing,
      • Communication,
      • Environmental protection Bio-pharmaceuticals,
      • New and Creative products
      • Shanghai Fengpu Industrial Park Export Processing Zone
      As 1 of the 3 Shanghai key development zones, Fengpu is located in the Fengxian District of the South Shanghai, which is the economic center of Shanghai in 21st century, enjoying the joint supporting from the municipal government and Fengxian local government. Due to the historical reason, Fengxian District used to be the industrial base of mechanism, electric, telecommunication and electron industries, possessing the predominant capability of providing correlative service for industry. China and Singapore, both governments decided to join hands in developing a modern industrial park in the east of Suzhou. The China-Singapore Suzhou Industrial Park (CS-SIP) was thus born on Feb. 26, 1994 when Chinese Vice Premier Li Lanqing and Singapore Senior Minister Lee Kuan Yew signed the Agreement on the Joint Development of Suzhou Industrial Park in Beijing. The Suzhou Industrial Park (SIP) is located about 20km from the city. Even as the park was being constructed, the Suzhou City government set up Suzhou New District Industrial Park (SND) right next to SIP. It was the exact replica of the Singapore model. The park has been named the first national ecological demonstration industrial parks
    • Free Trade Zones (*) www.china-access.com Ningbo FTZ Covering an area of 2.3 square quilometers, has main economic functions of export processing, international trade, bonded logistics and commodity exhibition. Ningbo is one of the major windows of fast economic growth in the region. As part of the development process, Ningbo FTZ has obtained ISO 14001 enviromental management certification. Shanghai Waigaoqiao Located in the Pudong region of China, Waigaoqiao free trade zone provides for a number of benefits to the units situated there. A detailed review of the Waigaoqiao FTZ in China offers a comprehensive insight into the facilities that the trading, processing and warehousing sector gets out of the free trade regulations for the zone. Waigaoqiao FTZ in China is one of the popular free trade zones in China that provides for a plethora of opportunities for both domestic and global business houses operating from this part of the world. Zhangjiagang FTZ I s one of the major free trading zones in China. Trading, exports, warehousing are some of the major activities which are being undertaken by the companies and units operating at the Zhanjiagang FTZ. Several benefits are also being offered. From simplification of foreign exchange earnings and repatriation of the benefits to the parent country, overall simplification of rules and custom levies and taxes make doing business at the Zhanjiagang FTZ a profitable and interesting proposition. Since 1992, total 14 border and economic cooperation zones have received approval from the State Council of China. . (*) some FTZ as a presentation only
    • Eco Cities Is a new eco- city planned for the island of Chongming in Shanghai , China . The name of the city literally translates as "East Beach". Arup, the British engineering consultancy firm, was contracted in 2005 by the developer, Shanghai Industrial Investment Corporation (SIIC), to design and masterplan Dongtan, an eco-city on Chongming Island close to Shanghai. The cities are planned to be ecologically friendly, with zero-greenhouse-emission transit and complete self-sufficiency in water and energy, together with the use of zero energy building principles. Fundamentally the city is being designed to enable people to choose a healthy and sustainable lifestyle, a city in balance with the natural environment that supports and surrounds it. Phase 1 is scheduled for completion by 2010, in time for the World Expo in Shanghai, and will accommodate a population of 50,000, rising to a projected 500,000 by 2040. www.china-access.com DONGTAN
    • Eco Cities Will be located 40 km from Tianjin city and 150 km from Beijing, will cover 10 sq km of salt pan, 10 sq km of desert and 10 sq km of watered. Located along the Jiyun River in Tianjin's Hangu district, the area will comprise residences, commercial space and factories, all of which will comply with international standards of energy use and environmental protection. The Chinese and Singaporean governments approved a development plan for the eco-city. It will be the second flagship Sino-Singaporean cooperation project since the Suzhou Industrial Park and will draw on Singapore's eco-conservation experience in regard to efficient energy use and environmental protection. Drafted with three principles in mind, the master plan aims to make the eco-city a practical, scalable and replicable model that promotes green living, economic development and social harmony for cities in China and elsewhere. The eco-city may house 350,000 residents when it is completed in 10 to 15 years. www.china-access.com TIANJIN´S
    • Let’s know more about some international companies in China www.china-access.com
    • They have just arrived…… www.china-access.com …… more than 500.000
    • Chain Store and Franchise
      • McDonald’s has opened more than 1.050 outlets in China in the past two decades.
      • McDonald's China announced on Feb. 4 an expansion plan to set up 175 new outlets and create more than 10,000 jobs this year on the Chinese mainland despite global economic downturn.
      • The expansion was the largest of its kind ever made by McDonald's across the world.
      Media Markt, the consumer electronics branch of Metro Group, entered a joint venture with Foxconn Technology Group in China. The joint venture’s target is the expansion of the Media Markt banner in China, where the first large format store is expected to open in the region of Shanghai by 2010. For the future, both partners see a potential for several hundred stores to open in China. Watsons hopes to open stores in 75 cities in China by the end of 2009. At present, Watson has a big plan in China, to open 5000 stores in China quickly. H&M, the Swedish apparel retailer has announced plans to vigorously expand in the Chinese market during 2009 by opening five new specialty stores in Beijing and Shanghai. www.china-access.com
    • Appendix Our services in the PRC www.china-access.com
    • As the name implies, Chinacces is a China-based consulting company whose mission is to assist overseas companies that wish to enter China market successfully. Chinaccess is committed to help foreign companies that wish to develop and then implement entrance strategies into the China market; and to pursue a long-term, successful and low-cost growth trajectory in China. www.china-access.com
    • www.china-access.com RESOURCES Deep-rooted local business resources are the powerful backbone of all our services and solutions. We have developed and maintained extensive relationships with China's national and local governments, industry organizations and have a broad business network covering 28 major cities in China. TEAM International management and consulting teams made up of experts with rich experience (average 8 years) and knowledge of the China market. SYSTEM Methodologies tailored to the China market such as an advanced database collection system; in-depth research processes; strict quality assurance system; integrated service based on market research, market evaluation; creating distribution channels to the point of reaching business expansion in China. EXPERIENCE Extensive experience in doing business in China and in successfully assisting foreign companies to enter the China market, achieve business growth and source reliable suppliers in China. SOLUTION One-stop solutions customized to the specific needs of our customers. Chinaccess continues to provide full service as the operation is set up and expanded in China. NETWORK Act locally, think globally. Our global network with agent representatives lets us keep informed and active in global business.
    • We have the key to China Which is your next business? www.china-access.com Do not hesitate to contact us if you are interested in China. We are ready to offer you more in-depth assistance on developing a China strategy and operation management. Surely we will assist you and find out the business opportunities that are just waiting you! China-Access http://www.china-access.com Tel: +86 2266203159 - Fax: +86 2266211568 Contact: Mr. Maximiliano Malamed E.mail: maximiliano.malamed@chnsourcing.com