Doing Business In China

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  • The biggest barrier in doing business in the world market, ranked first in all 8 items: law, price competition, information, language, delivery, foreign currency, time differences and cultural differences (Survey).
  • Doing Business In China

    1. 1. Doing Business in China Daniel GAO Economic & Commercial Office Chinese Embassy
    2. 2. China In Brief Official name: People’s Republic of China Capital city: Beijing National Language: Standard Mandarin Geographical Divisions: -22 Provinces - 4 Municipalities -5 Autonomous Regions -2 Special Administrative Region. Population: 1.3 billion Currency: RMB
    3. 3. China’s Economy (2011) GDP: $7.29 trillion, Rank 2nd GDP growth: 9.3% GDP per capita: $5,414 (90th) GDP by sector: Agriculture: 10.1% Industry: 46.8% Services: 43.1% Inflation (CPI): 5.4% Labor force :795.5 million FDI stock: $100 billion (2010)
    4. 4. China’s Economy (Cont) Main industries mining and ore processing iron, steel, aluminum, coal and other metals machine building textiles and apparel Petroleum and chemicals Cement consumer products (footwear, toys, electronics) transportation equipment (automobiles, cars and locomotives, ships, and aircraft
    5. 5. Export from China Export Volume: $1.904 trillion Export goods: --Electrical --Machinery (data processing equipment) --Apparel and textiles --Iron and steel, --Optical and medical equipment Main export partners: US 17.1%, Hong Kong 14.1%, Japan 7.8%, South Korea 4.4%, Germany 4% (2011)
    6. 6. Import into China Import Volume: $1.743 trillion Import goods: --Electrical and machinery --Oil and mineral fuels --Optical and medical equipment --Metal ores, plastics, organic chemicals Main import partners: Japan 11.2%, South Korea 9.3%, US 6.8%, Germany 5.3%, Australia 4.6%
    7. 7. Ireland China Trade Relations (2011) Trade volume: $ 5.87 bn, up 8.6% Irish exports to China: $ 3 .7 bn, up 8.5% Irish imports from China: $ 2.17 bn, up 8.7% 5th year as 1st biggest trade partner in Asia 3rd year with Irish trade surplus against China
    8. 8. Ireland China Mutual Investment(2011)  Over 110 Irish companies operating 241 projects in China  Irish investment in China: $ 641 million  China’s investment in Ireland: $ 148 million
    9. 9. CSO Stats on Bilateral Merchandized Trade* China includes Hong Kong and Macau
    10. 10. Trend of Irish Export to ChinaMn Euro Total exports Exports to China No Product 2001 2009 Growth(%) 2001 2009 Growth(%) 0 Food and live animals 5725.7 6266.2 9.44 5.163 44.46 761.20 1 Beverages and tobacco 958.1 1069.9 11.67 0.041 1.239 2921.95 2 Crude materials, inedible, except fuels 923.9 960.1 3.92 3.525 87.332 2377.50 Mineral fuels, lubricants and 3 285.5 596.1 108.79 0.004 0.036 800.00 related materials 4 Animal and vegetable oils, fats and waxes 23.4 19.9 -14.96 0.000 0 5 Chemicals and related products 32274.6 47242 46.37 43.012 242.16 463.00 Manufactured goods classified 6 1966.3 1234.7 -37.21 14.646 6.152 -58.00 chiefly by material 7 Machinery and transport equipment 37922.7 13739 -63.77 249.36 1189.7 377.10 8 Miscellaneous manufactured articles 8781.6 9114.2 3.79 22.153 51.542 132.66 Commodities and transactions 9 2786.1 2464.8 -11.53 0.559 16.924 2927.55 not classified elsewhereNote: All statistics does not include HongKong/Macau/Taiwan.
    11. 11. Irish Brands in China
    12. 12. China’s Brands in Ireland
    13. 13. Buying from/Selling to ChinaSearch: www.alibaba.com www.made-in-china.comResearch:1. Ask for related certificates (trade licence, product certificates, sanitary certificates, etc)2. Look at the website and reviews by other users3. Contact consulting firms for help (Chinaportal)Decision: go on or stop
    14. 14. Custom Duty Regulator: General Administration of Customs (GAC , http://english.customs.gov.cn) Overall average tariff level: 9.8% Agricultural products 15.2% Industrial goods: 8.9 Types of duties and taxes China’s Import Tax Rate Customs duties Varies on type of product Value Added Tax (VAT) 17% Consumption Tax 5-40% depending on product Vessel Tonnage Tax RMB 0.45 to 9.3% per ton
    15. 15. Import and Export Licences special licences required prior to import into or export from China for pharmaceuticals, encryption technologies, chemical fertilizers, and products containing “home-grown” technologies. Issued by Ministry of Commerce (MOFCOM) Importers & Exporters need to make accurate declarations and submit the requisite import or export licences to Customs for examination for the release of the products.
    16. 16. Fraudulence? Frank communication and negotiation Ask for legal support Report to the local government bureau Report to the local police station Complain hot lines (in Chinese ) 12330 IPR related 12390 copyright infringement 12365 product quality 12315 customer complaint 12360 custom issues
    17. 17. Business ContributorsSource: UCD Confucius Institute for Ireland
    18. 18. Time language informationprocedure cultural differences currency law price
    19. 19. Your strategy for doing business in PRC is PRC ------ Confucius Institute for Ireland
    20. 20. Embassy’s Role promoting and enhancing bilateral economic, trade and investment cooperation providing business information and consultation services to companies from both countries facilitating trade and investment activities (business trips/exhibitions) keeping close contact with relative Irish government departments/agencies/associations/chambers, rendering guidance to Chinese companies’ business development in Ireland
    21. 21. ContactTel: 01-2600580Fax: 01-2696966Website: ie.mofcom.gov.cnEmail: commercial@embassyofchina.ieAddress: 77, Ailesbury Road, Dublin 4
    22. 22. Go raibh maith agaibh !

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