3. Building
Bridges to
China
Kraken YU, ( 余小晴 )
Director, Ireland HK Business Forum,
Dublin Chamber of Commerce
&
CEO at Cornerstone (Research)
International
3 28 September 2012 - Chester Beatty Library
4. Building
Bridges to
Know Asian Markets, Grow Asian Markets China
Know Asian Markets, Grow Asian Markets
爱尔兰
CHINA
China: Country profile
Culture Issues
Case Study: Software Industry
Do’s & Don’t
4 28 September 2012 - Chester Beatty Library
5. Building
Bridges to
China Country Profile China
China is the world's most populous country,
with a continuous culture stretching back nearly 4,000 years.
5 28 September 2012 - Chester Beatty Library
6. Building
Bridges to
China – Country Profile China
Many of the elements that make up the foundation of the modern
world originated in China, including paper, gunpowder, credit
banking, the compass and paper money.
After stagnating for more than two decades under the rigid
authoritarianism of early communist rule under its late leader,
Chairman Mao, China now has the world's fastest-growing economy
and is undergoing what has been described as a second industrial
revolution.
China is the world’s second largest economy.
6
6 28 September 2012 - Chester Beatty Library
7. Building
Bridges to
China – Country Profile China
The People's Republic of China (PRC) was founded in 1949
after the Communist Party defeated the previously nationalist
Kuomintang in a civil war. The Kuomintang retreated to
Taiwan, creating two rival Chinese states - the PRC on the
mainland and the Republic of China based on Taiwan.
Beijing says the island of Taiwan is a part of Chinese territory
that must be reunited with the mainland, by force if necessary.
The claim has in the past led to tension and threats of
invasion, but since 2008 the two governments have moved
towards a more cooperative atmosphere.
7 28 September 2012 - Chester Beatty Library
8. Building
China Bridges to
China
Profile- Economy
Nowadays China is one of the world's top exporters and is attracting record
amounts of foreign investment. In turn, it is investing billions of dollars abroad.
As a member of the World Trade Organization, China benefits from access to
foreign markets. In return it must expose itself to competition from abroad. But
relations with trading partners have been strained over China's huge trade
surplus and the piracy of goods; the former has led to demands for Beijing to
raise the value of its currency, which would make Chinese goods more
expensive for foreign buyers and, in theory, hold back exports.
Some Chinese fear that the rise of private enterprise and the demise of state-run
industries carries heavy social costs such as unemployment and instability.
Moreover, the fast-growing economy has fuelled the demand for energy. China
is the largest oil consumer after the US, and the world's biggest producer and
consumer of coal. It spends billions of dollars in pursuit of foreign energy
supplies. There has been a massive investment in hydro-power, including the
$25bn Three Gorges Dam project.
8 28 September 2012 - Chester Beatty Library
9. Building
China Bridges to
China
Profile Facts
Full name: People's Republic of China
Population: 1.34 billion (UN, 2009)
Capital: Beijing
Largest city: Shanghai
Area: 9.6 million sq km (3.7 million sq miles)
Major language: Mandarin Chinese
Major religions: Buddhism, Christianity, Islam, Taoism
Life expectancy: 71 years (men), 75 years (women) (UN)
Monetary unit: 1 Renminbi (yuan) (Y) = 10 jiao = 100 fen;
Main exports: Manufactured goods, including textiles, garments,
electronics, arms
GNI per capita: US $2,940 (World Bank, 2008)
Internet domain: .cn
International dialling code: +86
9 28 September 2012 - Chester Beatty Library
10. Building
China – International Stage Bridges to
China
Patriot
Beijing Huaqi Information Digital Technology Co. Ltd (aigo) is a high-tech
company headquartered in Beijing dedicated to the development of China's
national IT industry.
aigo is a leading manufacturer of electronic products for consumer and professional markets. Its
products include MP3 players, many other newly developed products like MP4 players and MP5
players.
Huaqi recorded consolidated annual sales of approximately 2 billion RMB last year and includes
more than 1,900 employees worldwide, over 700 of whom are professional and qualified R&D
staff.
Huaqi uses the marketing platform of Vodafone McLaren Mercedes to develop aigo's overseas
market. aigo is Vodafone Mclaren Mercedes' first Chinese partner.
10 28 September 2012 - Chester Beatty Library
11. China’s Gateway to US & Europe Building
Bridges to
(EMEA) China
中国通向美国和欧洲 (EMEA) 的通路
11
11 28 September 2012 - Chester Beatty Library
12. China – Ireland Cooperation Building
Bridges to
中国与爱尔兰的合作 China
Software development;
First Accredited ECDL courseware in Chinese;
First Irish s/w company registered with the Copyriht Authority, Beijing,
China;
First eLearning company in China aim at the Outsourcing market;
First company with training course mapped onto SFIA – EU ICT Skills
framework;
Cloud based eAssessment engine in Semantic eLearning platform;
Saas / PaaS;
Business member of ISIN – Irish Software Innovation Network by ISA,
IBEC, EI
Technology partner – Ireland (DERI-NUIG, DIT), France, HKSAR, China.
Based in NovaUCD, UCD, Belfield, Dublin
12 28 September 2012 - Chester Beatty Library
13. China – Ireland Cooperation Building
Bridges to
中国与爱尔兰的合作 China
Agreements signed during Trade mission to China, 2005.
2005 在贸易代表团到中国期间签署的协议。
– Neusoft - 东软
– ATA Testing -ATA 测试
– Linkage - 联创
13 28 September 2012 - Chester Beatty Library
14. China – Ireland Cooperation Building
Bridges to
中国与爱尔兰的合作 China
14 28 September 2012 - Chester Beatty Library
15. Building
Bridges to
Advantages of Ireland China
English speaking country (mother tongue)
Advanced infrastructure and education
World center of excellence for software
localisation
– Non-English localisation and sales by native speakers
(10% of workforce is non-Irish with 25+ major
languages)
Close to the marketplace
Pro-business tax (12.5%), legal and government
policies
Close business and family connections to USA
15 28 September 2012 - Chester Beatty Library
16. Building
爱尔兰的优势 Bridges to
China
讲英语的国家 ( 母语 )
高级基础设施和教育
世界卓越的软件地方化中心
接近市场
低营业税 (12.5%) ,法定的政府政策
与美国的接近贸易和家庭联系
16 28 September 2012 - Chester Beatty Library
17. Building
Understanding Chinese Business Bridges to
China
Culture and Etiquette
The Chinese business practice is vastly different from
the Western method that most of us may be used to. Of
course, with the Chinese economy opening up, China's
joining of WTO and the Olympics in 2008,
many Chinese business practice are now beginning to
align with more conventional methods.
However, China will always have their own unique
business culture and etiquette, given their unique
history and background.
17 28 September 2012 - Chester Beatty Library
18. Understanding Chinese Business Building
Bridges to
Culture and Etiquette China
Chinese business contacts are mostly referrals
However, it is common today for cold calls and direct contacts, given the availability
of the internet and the competitive nature of Chinese businesses.
Business Relationship in China
Chinese business relationship inevitably becomes a social relationship after a
while.
Seniority is important in China
Seniority is very important to the Chinese especially if you are dealing with a State
owned or government body. Instead of addressing the other party as Mr. or Mrs. so
and so, it is always appropriate to address the other party by his designation (i.e
Chairman So and So, Director So and So or Manager So and So)
When giving out name cards or brochures, make sure you start with the most senior
person before moving down the line. When giving out a name card or receiving one,
ensure that you are stretching out with both hands with the card. Remember to
face the card you are giving out in a manner such that the receiving party gets it
facing him correctly.
18 28 September 2012 - Chester Beatty Library
19. Building
Understanding Chinese Business Bridges to
China
Culture and Etiquette
Giving Face or Gei MianZi
Giving face (aka giving due respect) is a very important concept in China. You must
give the appropriate respect according to rank and seniority.
Gifts and Presents
Unlike earlier days when China was very poor, gifts, especially of Western origin was
especially appreciated. Today, China produces and imports almost anything imaginable
and gifts are no longer a novelty.
However, gifts are always appreciated and especially in the smaller cities or towns,
will continue to play an important part in your business relationship.
Lunch/Dinner in China
There is no business talk in China without at least one trip to a restaurant. Sometimes,
a trip is made to the restaurant even before any business discussion take place!
Inevitably, the restaurant will always be a grand one and you are likely to be hosted in a
private room.
There is an elaborate seating arrangement for a Chinese business meal. There are
fixed seating positions for the host and the guest and then they are seated again
according to seniority. This is a very important aspect of a formal dinner and it is
important that you follow the rules accordingly.
19 28 September 2012 - Chester Beatty Library
20. Building
Understanding Chinese Business Bridges to
China
Culture and Etiquette
Drinking with the Chinese
The Chinese are big drinkers especially in Northern and Western China. It does not matter if it
is lunch or dinner; as long as a meal is being hosted, there will be alcohol.
Chinese wine is the favorite, followed by red wine and beer. Chinese wine is more like fuel
than liquor, having a alcohol concentration as high as 60% or MORE! No matter how good a
drinker you may think of yourself, never, ever challenge a Chinese into a drinking contest. They
will win, hands down!
It is often seen as rude not to drink with the Chinese in a formal dinner.
After Dinner Entertainment in China
Formal business dinner normally drags for quite sometime as there will be much social talk,
some karaoke, and drinking contests. Most of the time, everyone is too drunk to indulge in
further entertainment after a dinner. In addition, if you are just new to this partnership, you are
unlikely to be invited to further after dinner entertainment.
However, once you are familiar with them, you may be invited to a Karaoke, or a Night Club, or
a Suana. Do note that if they are the host for the night, all bills will be picked up by them for the
night, including all entertainment. It is impolite to fight for the bill or worst, split the bills.
20 28 September 2012 - Chester Beatty Library
21. Understanding Chinese Business Building
Bridges to
China
Culture and Etiquette
Controversial Issues in China
There are some taboo areas in social conversations with the Chinese. Try to
avoid these conversational topics as much as possible:
1. You must not mention that Taiwan is an independent state or a country.
2. You must NEVER praise the Japanese or be seen to be good buddies with
them.
3. You can condemn Chairman Mao Tse Tung but avoid criticizing Deng Hsiao
Ping.
4. You must not praise Shanghai in front of natives of Beijing and similarly vice
versa.
However, the younger generation, especially those educated overseas, the ‘old’
traditions is not as important as for the older generation, but respect is.
21 28 September 2012 - Chester Beatty Library
22. Cultural Differences - Building
Bridges to
Potential for Major China
Problems
West – Expressionist
– Chinese – Listen & learn
West – straight to the point
– Chinese – hidden agendas
West & Chinese – explore each others market
To cooperate – find a win + win
22 28 September 2012 - Chester Beatty Library
23. Cultural Differences - Building
Bridges to
Potential for Major China
Problems
Western companies assume creativity
– Do not specify requirements in detail
Eastern companies require detailed instructions
Major potential for mistakes!
23 28 September 2012 - Chester Beatty Library
24. Building
Chinese Language Bridges to
China
Standard Mandarin is officially known
in mainland China, Hong Kong and Macau
as Putonghua (simplified Chinese: 普通
话 ; traditional Chinese: 普通話 ; pinyin
: Pǔtōnghuà; literally "common speech").
in Taiwan as Guoyu, and unofficially in
Hong Kong as Gwok Yu (simplified
Chinese: 国语 ; traditional Chinese: 國語 ;
Mandarin Pinyin:Guóyǔ; Jyutping:
gwok3 jyu5; literally "national language").
in Malaysia and Singapore
as Huayu (simplified Chinese: 华语 ;
traditional Chinese: 華語 ; pinyin: Huáyǔ;
literally "Chinese (in a cultural sense)
language").
24 28 September 2012 - Chester Beatty Library
25. Building
Bridges to
Chinese Language China
口 = mouth
官 = official
口 +口 = 官
An official have TWO ‘mouths’,
a well known Chinese saying
25 28 September 2012 - Chester Beatty Library
26. Building
Bridges to
Chinese Language China
26 28 September 2012 - Chester Beatty Library
27. Building
Bridges to
Chinese Language China
www.chinpass.com
Learn to speak Chinese in 72 hours!
Play virtual game to learn
27 28 September 2012 - Chester Beatty Library
28. Building
软件 Software Bridges to
China
Government bodies – Technology, software industry
http://www.most.gov.cn/eng/
http://www.miit.gov.cn/
28 28 September 2012 - Chester Beatty Library
29. Building
软件 Software Bridges to
China
Government bodies – Technology, software industry
Ministry of Industry and Information Technology (
simplified Chinese: 工业和信息化部 ; traditional Chinese: 工業和信
息化部 ), established in March 2008, is the state agency of the
People's Republic of China responsible for regulation and
development of the postal service, Internet, wireless, broadcasting,
communications, production of electronic and information goods,
software industry and the promotion of the national
knowledge economy.
The Ministry of Industry and Information Technology is NOT
responsible for the regulation of content for the media industry.
29 28 September 2012 - Chester Beatty Library
30. Building
软件 Software Bridges to
China
http://english.cas.cn//
http://www.cae.cn/en/
http://www.csia.org.cn
30 28 September 2012 - Chester Beatty Library
31. Related bodies in HKSAR Building
Bridges to
软件 Software China
http://www.cyberport.hk
http://www.ogcio.gov.hk/eng/about/ewelcome.htm
http://www.hkstp.org
31 28 September 2012 - Chester Beatty Library
32. Building
软件 Chinese Software Growth Bridges to
China
China's software industry grew at a compound annual growth rate of more
than 39% over the period from 2001 to 2007 to reach RMB 506 billion and is
further anticipated to grow at a CAGR of nearly 22% through 2012.
Rapid growth in IT spending among various industrial segments, including
government, banking and manufacturing are likely to propel the domestic
software industry in near future.
The ongoing large-scale endeavors for 3G deployments are expected to fuel
growth in the demand for 3G telecom software across various application
platforms.
Expanding broadband infrastructure with increased Internet penetration among
Small and Medium Businesses (SMBs) will help the SaaS market to grow at a
CAGR of approx 44% during 2008-2012.
The software outsourcing market is anticipated to grow at a CAGR of nearly 34%
from 2008 to 2012.
The current perception of lack of required talent in coming few years is urging
the foreign IT training and education centers to expand into China's IT education
market.
Also, China is known as one of the leading countries in software development in
world.
32 28 September 2012 - Chester Beatty Library
33. Building
软件 Top Chinese Software Companies Bridges to
China
In 2008 there were 984 software companies that achieved 100 million
RMB or above in revenues.
Beyondsoft
CDC Software
Chinasoft International Ltd.
hiSoft Technology International
Integrated Solutions Limited Integrated Solutions Limited (ISL)
Kingdee International Software Group Co. Ltd
Neusoft
UFIDA Software Co. Ltd
VanceInfo Technologies Inc.
33 28 September 2012 - Chester Beatty Library
34. Building
软件 Top Chinese Software Companies Bridges to
China
Sourcing
The exports are mainly driven by the software business given by Japan.
Over 60% of Chinese exports are taken up by Japan, as there are a
good number of Chinese developers who develop software in Japanese
.
Linux
It is predicted that in China, Linux market (both server and client) will
grow with an annual rate of 34 %. The client-side share growth will be
comparatively faster.
Enterprise software
The Enterprise software market including ERP (Enterprise Resource
Planning), SCM (Supply chain Management), EAM (Enterprise Asset
Management), CRM (Customer Relationship Management) and
financial software is growing rapidly. The ERP software is available
from UFIDA Software, Kingdee, SAP, etc.
Are you in the CLOUD !!!
34 28 September 2012 - Chester Beatty Library
35. Building
Get it right - Copyright! Bridges to
China
INTELLECTUAL-PROPERTY TRANSFER?
BUT, China, notorious as a hub of software piracy, has been steadily
cleaning up its act. In 2004, 90% of the software used in China was
pirated … By 2008, according to the most recent statistics available,
that piracy rate had dropped to 80%. Bloomberg Business week –
3,2010
"China's increasing efforts to implement policies to promote 'indigenous
innovation' that discriminate against foreign firms and seek to compel
them to transfer IP rights to Chinese ownership.“
Beijing imposed a Dec. 10, 2009, deadline for companies in software,
telecom, energy-efficient products, and three other sectors to apply for
placement on a government procurement list of preferred products. To
get on the list, companies need products with intellectual property
developed, owned, and trademarked in China.
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36. Building
Case Study Bridges to
China
1. Delivery of a training service to China:
Argreement signed, June, 2007, with regional office of MII.
Appointed a local partner – Microsoft training in region
Local MII office is the operator.
Detail of Agreement not all deliver ! From payment terms to local
partner’s benefits.
2. Renewable Engergy.
Irish Developer secured project finance via trade finance. Is it the right
way to do business ?
Major Chinese Wind energy turbine manufactere acquired Dutch Tech
Co.
But not seeing eye-2-eye ?
Developing three wind farms in Ireland – over complcated with local
detail.
36 28 September 2012 - Chester Beatty Library
37. Building
Get It Right! Bridges to
China
Know your client.
Know your client’s client ! – government ?
What is the value proposition?
Where the commercial benefits are?
Who & when financial transaction is conducted ?
Make sure you have initial funding requirements
+20% !
Brand your product / service, make it sexy !
37 28 September 2012 - Chester Beatty Library
38. Building
Get It Right! Bridges to
China
Local employees V partner.
Travel & visit your clients – Cost, in time & € !
Micromanagement – COST $$$
Try Agile ?
Try HKSAR – Hong Kong Special Adm Region.
China & Chinese Co is ready and able to invest. Are
you ready to sell ?
38 28 September 2012 - Chester Beatty Library
39. Building
Bridges to
Get It Right! Culture China
•Build relations
•Traditions
•Respect each others culture
•‘Face’ in VERY important
•Team work
•Leadership
In China, one single most import aspect:-
联系 ! [guānxì] - Connections, networks
-- Mid Autum’s festival, 30-Sept, 2012.
-- China National Day, 1-October.
39 28 September 2012 - Chester Beatty Library
40. Building
Mr Kraken Yu FIAP BSc MSc Bridges to
China
Cornerstone Research Intl,
NovaUCD, UCD,
Ireland HK Business Forum Belfield, Dublin 4
Dublin Chamber of Commerce www.eassess.org
Dublin info@eassess.org
Ireland
kraken@ihkbf.com
•Mentor, Enterprise Ireland
•ex-Director, China,
Asia Trade Forum,
Irish Exporters Association,
Dublin.
THANK YOU !
谢谢!
40 28 September 2012 - Chester Beatty Library
41. Building
Bridges to
China
Michael Shelly
Operations Director, PM Group
Central & Eastern Europe (CEE), Russia,
Middle East & North Africa (MENA) and
Asia
41 28 September 2012 - Chester Beatty Library
42. Building
PM Group in China Bridges to
China
42 28 September 2012 - Chester Beatty Library
43. Building
Overview of PM Group Bridges to
China
An integrated A&E Design and Project Management firm
1,750 people - 25 0ffices & 30 countries
Gross Revenue > €200M
Sectors: Life Sciences, Food/Nutritionals, Advanced Technology,
Healthcare, Education, Energy & Environmental, Infrastructure
Full Service Company
− Architecture & Engineering Design
− Permitting & Environmental Consulting
− Procurement & Contract Administration
− Project & Construction Management
− Commissioning & Qualification
− Consultancy – Environmental & Sustainability
Established 1973 – Private Company – Employee Owned
43 28 September 2012 - Chester Beatty Library
44. Building
Our Clients…… Bridges to
Pharmaceutical and BioPharmaceutical China
44 28 September 2012 - Chester Beatty Library
45. Our Clients…. Building
Bridges to
Food, Nutrition & Consumer Products China
Advanced Manufacturing
45 28 September 2012 - Chester Beatty Library
46. Building
Biopharma Bridges to
China
Centocor
Ireland Sanofi-Aventis, Paris
Janssen,Belgium
Merck, Ireland
Genzyme,
Belgium, USA & China
GSK Bio, Belgium
Intas, India
46 28 September 2012 - Chester Beatty Library
47. Building
Bridges to
Food/Nutritionals & Beverage China
MARS Wrigley, China
Almarai, Saudi Arabia
Coca Cola, Ireland Pfizer Wyeth Nutritionals,
Suzhou, China
Cadbury, Poland Inbev, UK
Pfizer Wyeth,
Singapore
47 28 September 2012 - Chester Beatty Library
48. Building
Advanced Technology Bridges to
China
Microsoft Data Centre, Ireland
Tyndall, Ireland
Tyndall, Ireland
National
Bank
of Abu Dhabi
Data Centre
IBM, Ireland
Intel, Ireland
Dell, Poland
48 28 September 2012 - Chester Beatty Library
49. Building
Bridges to
Group Strategy Since 2005 China
Reduce dependency on Ireland
Develop an International ‘footprint’
Follow our MNC clients wherever they are investing
Focus on our Life Sciences & Food Sector clients in
Ireland, UK, WE, CEE, Singapore, China, India and the
USA
Focus on Healthcare, Education, Science & Technology,
R&D, Transportation in Ireland, UK, MENA
Expand our International Consultancy Division into
Environmental, Nature Resources & Institutional
Strengthening projects in MENA, Central Asia & ASEAN
49 28 September 2012 - Chester Beatty Library
50. PM Group in Asia Today – Building
Bridges to
Office & Project Locations China
Georgia Uzbekistan
Azerbaijan
Beijing
Japan
Afghanistan Changshu
Suzhou Shanghai
Pudong
Anhui Hangzhou
Punjab
New Delhi
Gujurat Guangzhou
Ahmedabad
Bhubaneshwar
Maharashtra
Mumbai Hanoi
Pune
Goa Hyderabad Manila
Andhra Pradesh
Bangalore Chennai
Coimbatore
Thiruvananthapuram Tamil Naidu
Malaysia
Singapore
50 28 September 2012 - Chester Beatty Library
Indonesia
51. Building
PM Group’s Business Development in Asia Bridges to
China
1998/2001
PM entered and exited Singapore as business model didn’t work
2006
Re-entered Singapore working out of Alliance Partners offices: M+W Zander
2007
Commenced working in China on Wyeth’s Infant Nutritional plant in Suzhou using M+W Zanders’s Shanghai
offices
2008
PM moved into own office in Singapore
Commenced working in India with local Alliance Partners: VA Architects (VA)
2009
Signed formal MoU with Venkataramanan Associates (VA), Bangalore
2010
Acquired 50% stake in VA’s Bangalore Engineering company – 50 people
Application made for China WFOE License and office leased in Shanghai
2011
Opening of own office in Shanghai in Feb 2011
2012
Acquired remaining 50% stake in India business to make it 100% PM Group company and moved to new larger
office in Bangalore
51 28 September 2012 - Chester Beatty Library
52. Pfizer (Wyeth) Nutritionals, Suzhou, Building
Bridges to
China | Nutritionals Facility China
Plant Area: 50,000 sqm greenfield project
Cost: US$300M
Scope of services:
• Full process design, project &
construction management services
• 2 new dryers & evaporator trains
• 2 wet mixing lines, can and pouch fillers
• ASRS warehouse
Status: Completed in 2010
52 28 September 2012 - Chester Beatty Library
53. Building
Novartis, Changshu, China | Novartis Bridges to
Chemical API Facility China
Site Area: 229,000 sqm
Scope of services:
•Commissioning & Qualification
Status: Completed in 2010
53 28 September 2012 - Chester Beatty Library
54. Mead Johnson, Guangzhou, China | R&D Building
Bridges to
Centre China
Scope of services:
• EPCM / C&Q
• Concept design and detailed design
phases
Status: In progress
54 28 September 2012 - Chester Beatty Library
55. Building
MARS Wrigley, Guangzhou, China | Bridges to
Greenfield Confectionery Facility China
Plant Area: 46,000 sqm greenfield project
Scope of services:
• Concept, Detailed Design & Procurement
55 28 September 2012 - Chester Beatty Library
56. Building
Setting up a Business in China Bridges to
China
Allow 6 – 8 months at least, probably longer
Identify premises and enter appropriate lease
Register company name with Ministry for Industry & Commerce
Register WFOE (Wholly Foreign Owned Enterprise) with relevant
City Commerce Committee – must specify scope of business
Business Licence – Ministry for Industry & Commerce
Design Licence – Ministry of Construction
Enterprise Registration – Technical & Quality Supervision Bureau
(Design)
Tax Registration – Relevant City Tax Office
SAFE Tax Registration – State Administration of Foreign Exchange
56 28 September 2012 - Chester Beatty Library
57. Building
Doing Business in China – WFOE Route Bridges to
China
Engage local professional advice
Develop a realistic business plan for WFOE licence submission
Ensure all your registrations are applied for in the correct sequence
Three months to submit all registrations – or start again!
Comply fully with the terms of your registration
Accept that China is more bureaucratic than Ireland – be patient
Get it right first time – do your homework in advance
Pay your Taxes!
57 28 September 2012 - Chester Beatty Library
58. Doing Business in China – Sponsor Building
Bridges to
Route China
This is an alternative route – used by PM whilst applying for WFOE
M+W Zander are a Design & Build company and operate across Asia
PM and M+W Zander have an MoU for working across Asia
M+W Zander have all necessary Chinese Registrations and Licences
PM operate as specialist process design consultant to M+W Zander
M+W Zander sponsored PM and applied for our Work Permits
PM Personnel work in M+W Zander’s offices and sites
PM projects registered with tax authorities in relevant locations for
compliance
58 28 September 2012 - Chester Beatty Library
59. Building
Bridges to
China - Ease of doing business China
China is 91 out of 183 in The World Bank “Ease of Doing
Business” Rankings
Low rankings
– Dealing with construction permits (179th)
– Starting a business (151st)
– Paying taxes (122nd)
– Getting Electricity (115th)
– Protecting Investors (97th)
China ranks 75th in the Transparency International
“Corruption Perception Index” (Ireland ranks 19th)
59 28 September 2012 - Chester Beatty Library
60. Building
Top 12 Pharma FDI Companies in China Bridges to
China
Johnson & Johnson, USA
Pfizer (Wyeth), USA
Roche, Switzerland
GlaxoSmithKline, UK / Belgium
Novartis, Switzerland
Sanofi-Aventis, France / Germany
AstraZeneca, UK / Sweden / USA
Abbott Laboratories, USA
Merck & Co., USA
Bayer Healthcare, Germany
Eli Lilly, USA
Bristol-Myers Squibb, USA
60 28 September 2012 - Chester Beatty Library
61. Top 12 Food & Beverage FDI Companies Building
Bridges to
in China China
Nestle, Switzerland
PepsiCo, USA
Kraft Foods, USA
Anheuser Bush InBev, Belgium
ADM, USA
Coca Cola, USA
MARS Wrigley, USA
Unilever, UK / Holland
Tyson Foods, USA
Cargill, USA
SAB Miller, USA
Danone, France
61 28 September 2012 - Chester Beatty Library
62. Building
Critical Success Factors for PM Group Bridges to
China
Having a business model that suits our clients’ needs
Investing properly in the business from the outset, giving
our new venture the necessary momentum to be
successful
Having the right management team on the ground in China
Achieving early wins with our MNC clients in Q1 and Q2 2011
Developing a good working relationship with alliance partners
from the outset – including LDI’s (Local Design Institutes)
Knowing our weaknesses – ensuring that we do not overstretch
ourselves and that we deliver on our commitments to our
clients
62 28 September 2012 - Chester Beatty Library
63. Building
Key Lessons Bridges to
China
Be clear on why you are setting up in China and your strategy for
success
It is a very, very competitive environment – be clear about your USP
and if there is a market for it
Labour costs have risen to EU levels for very good locals, so hire
cautiously and invest heavily in retention and career development
Language is an issue. You will need people you can trust with good
language skills
The bureaucracy is a lot more than we are used to. You must learn to
work within the system
63 28 September 2012 - Chester Beatty Library
64. Building
Bridges to
The Cultural Difference China
West versus China
The Boss Thinking
Me Problem ahead
Contact Anger
64 28 September 2012 - Chester Beatty Library
65. Building
Bridges to
In Conclusion China
There is lots of opportunity for Irish companies in a
global market and particularly so in China and in
Asia generally
Prepare well and learn from anyone you can
Do your homework and set clear targets
Get good local legal and financial advice
Utilise the support of Enterprise Ireland and the Irish
Embassy
Allow realistic timescales to achieve success
65 28 September 2012 - Chester Beatty Library
66. Building
Bridges to
China
www.pmgroup-global.com
66 28 September 2012 - Chester Beatty Library
Editor's Notes
"It took Japanese cars probably 25 years to reach a level where no-one doubted the quality," said Mr Holtheuer, of the firm Derco. "Korean cars, such as Kia and Hyundai, are doing an excellent job. It probably took them 15 years. We think China is going to take 10 years."
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