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
Doing Business in China Daniel GAO Economic & Commercial Office Chinese Embassy
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
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)
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
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)
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%
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
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
CSO Stats on Bilateral Merchandized Trade* China includes Hong Kong and Macau
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.
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
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
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.
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
Business ContributorsSource: UCD Confucius Institute for Ireland
Time language informationprocedure cultural differences currency law price
Your strategy for doing business in PRC is PRC ------ Confucius Institute for Ireland
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