Introduction<br /><ul><li>China has one of the oldest civilization.
Population: (July 2010 est.) 1,330,141,295 As the world's population is approximately 6.7 billion, China represents a full 23% of the world's population so one in every five people on the planet is a resident of China.
China has become the 2th largest economy in the world
China is one of the most polluted country</li></li></ul><li><ul><li>Total area: 9,596,961 sq. km. (about 3.7 million sq. mi.).
Cities: Capital--Beijing. Other major cities--Shanghai, Tianjin, Shenyang, Wuhan, Guangzhou, Chongqing, Harbin, Chengdu.
Terrain: Plains, deltas, and hills in east; mountains, high plateaus, deserts in west.
Climate: Tropical in south to subarctic in north.
Labor force (2009 est.): 812.7 million. </li></li></ul><li><ul><li>Type: Communist party-led state.
Independence: People's Republic established October 1, 1949.
Crab and Fish Stomachs</li></li></ul><li>Chinese Flag<br />The symbolism of the large golden star is said to represent the leadership of the Communist Party of China<br />While the four smaller stars are believed to represent the four classes of people in China (as categorized by Mao Zedong): workers, peasants, petty bourgeoisie, and patriotic capitalists.<br /> The colors represented, red and gold, also are symbolic in meaning. Red is a color commonly associated with communism and gold is said to symbolize the yellow race of the Chinese nation. <br />
Chinese Economy<br /><ul><li>GDP (2009): $4.814 trillion (exchange rate-based).
Per capita GDP (2009): $3,678 (exchange rate-based).
Natural resources: Coal, iron ore, petroleum, natural gas, mercury, tin, tungsten, antimony, manganese, molybdenum, vanadium, magnetite, aluminum, lead, zinc, uranium, hydropower potential (world's largest).</li></li></ul><li><ul><li>Agriculture: Products--Among the world's largest producers of rice, wheat, potatoes, corn, peanuts, tea, millet, barley; commercial crops include cotton, other fibers, apples, oilseeds, pork and fish; produces variety of livestock products.
Industry: Types--mining and ore processing, iron, steel, aluminum, and other metals, coal; machine building; armaments; textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products, including footwear, toys, and electronics; food processing; transportation equipment, including automobiles, rail cars and locomotives, ships, and aircraft; telecommunications equipment, commercial space launch vehicles, satellites.</li></li></ul><li><ul><li>Trade: Exports (2009)-- $1.194 trillion: electrical and other machinery, including data processing equipment, apparel, textiles, iron and steel, optical and medical equipment.
Main partners (2008)--United States 17.7%, Hong Kong 13.3%, Japan 8.1%, South Korea 5.2%, Germany 4.1%.
Imports (2009)-- $921.5 billion: electrical and other machinery, oil and mineral fuels, optical and medical equipment, metal ores, plastics, organic chemicals.
Main partners (2008)--Japan 13.3%, South Korea 9.9%, Taiwan 9.2%, U.S. 7.2%, Germany 4.9%. </li></li></ul><li>4<br />MAJOR CITIES OF CHINA<br />
1<br />Beijing is a municipality directly under the Central Government and the capital of the People's Republic of China. It is not only the nation's political center, but also its cultural, scientific and educational center, and a key transportation hub. Situated on the north edge of the North China Plain, it is sheltered by chains of mountains to the west, north and east. Its southeastern part is a plain. Beijing's temperate continental climate produces four clearly contrasted seasons: a short spring, rainy and humid summer, long and cold winter, and a very pleasant autumn.<br />
2<br /><ul><li>Shanghai,is China's largest city.
Shanghai's location helps make it an important comprehensive industrial base and harbor at Yangtze River.
Shanghai plays an essential role in the national economy. Major industries include metallurgy, machine-building, shipbuilding, chemicals, electronics, meters, textiles and other light industries, in addition to its highly developed commerce, banking and ocean shipping industry. </li></li></ul><li>3<br />TIANJIN<br />
3<br /><ul><li>Tianjin is a major industrial and commercial city in north China.
Tianjin is an important port for ocean and offshore shipping, and foreign trade.
Tianjin's traditional industries include iron and steel, machine-building, chemicals, electric power, textiles, paper-making and foodstuffs, plus some emergent industries such as shipbuilding, automobile manufacturing, petroleum exploitation and processing, and the production of tractors, chemical fertilizers, pesticides, watches, TVs and cameras.</li></li></ul><li>4<br />CHONGQING<br />
4<br />Chongqing is the largest industrial and commercial center in southwest China.<br />A hub of land and water transportation in the upper Yangtze valley.<br />Chongqing is a comprehensive industrial city, with advanced iron and steel, chemicals, electric power, automobile manufacturing, machine-building, shipbuilding, construction materials, textiles, foodstuffs and pharmaceuticals industries<br />
5<br />COMPNIES OF CHINA <br />YOU SHOULD KNOW<br />Source :<br />
1<br />One-year total return: 163%<br />Founded in November, 1998, Tencent, Inc. has grown into China's largest and most used Internet service portal.<br />Tencent (TCEHF) is China's leading provider of instant messaging services, far ahead of Micosoft, and the company's cute penguin mascot, QQ, is one of the most recognized corporate symbols in China. <br />CEO Ma Huateng (aka Pony Ma)<br />
2<br />One-year total return: 36%<br />China's largest publicly traded telecom equipment company, ZTE (ZTCOF) is trying to make a name globally-and win friends in the process. While Chinese rival Huawei Technology became known for its legal battle with Cisco Systems over intellectual property rights, ZTE and Cisco have teamed up and are now partners in China. One problem for ZTE: The company is busy selling 3G equipment worldwide, but in its home market Chinese regulators have yet to give the green light for operators and consumers to start using ZTE's 3G gear. <br />Mr. Huang Dabin, CEO of ZTE<br />
3<br />One-year total return: 28%<br />PetroChina (PCCYF), China's No. 1 exploration and production player, is growing fast, thanks to surging oil and gas demand from the red-hot Chinese economy. Outside of its home country, PetroChina's image is of a company rushing around the world trying to snap up oil reserves wherever it can. But China's biggest energy company, which controls 75% of the mainland's reserves, has major domestic exploration programs that enable it to keep jacking up production of both oil and gas. <br />PetroChina CEO Jang Jiemin<br />
4<br />One-year total return: 111%<br />With more than 300 million Chinese using its service, China Mobile (CHL) has a customer base bigger than the entire U.S. population. The world's biggest cellular carrier, state-owned China Mobile is signing up nearly 5 million new customers every month and is making a big push to win users in the Chinese countryside. In January, the company announced it was buying 89% of Paktel, the fifth-largest cellular operator in Pakistan.<br />Wang Jianzhou, CEO<br />
5<br />One-year total return: 36%<br />Don't be fooled by the inelegant transliteration of the Chinese name. (It should be pronounced “Guo Mei.”) This electronics retailer is a nationwide powerhouse and is readying for a fight against Best Buy, which is entering the market. To help in the upcoming battle, Gome (GMELF) last month announced it had acquired a rival chain for $675 million. The company also got some good news in January with the announcement that a government investigation into possible wrongdoing by billionaire Chairman Huang Guangyu had closed without charges.<br />CEO Huang guangyu<br />
Business Etiquette in China<br />DO’s AND DONT’s<br />
Relationship & Communication<br /><ul><li>The Chinese don't like doing business with companies they don't know, so working through an intermediary is crucial.
Before arriving in China send materials (written in Chinese) that describe your company, its history, and literature about your products and services
Business relationships are built formally after the Chinese get to know you.
Be very patient. It takes a considerable amount of time and is bound up with enormous bureaucracy. </li></li></ul><li><ul><li>The Chinese see foreigners as representatives of their company rather than as individuals.
Rank is extremely important in business relationships and you must keep rank differences in mind when communicating.
Never lose sight of the fact that communication is official, especially in dealing with someone of higher rank. Treating them too informally, especially in front of their peers, may well ruin a potential deal. </li></li></ul><li>Business Meeting Etiquettes<br /><ul><li>Appointments are necessary and, if possible, should be made between one-to-two months in advance, preferably in writing.
If you do not have a contact within the company, use an intermediary to arrange a formal introduction. Once the introduction has been made, you should provide the company with information about your company and what you want to accomplish at the meeting.
You should arrive at meetings on time or slightly early. The Chinese view punctuality as a virtue. Arriving late is an insult and could negatively affect your relationship</li></li></ul><li><ul><li>Pay great attention to the agenda as each Chinese participant has his or her own agenda that they will attempt to introduce.
Send an agenda before the meeting so your Chinese colleagues have the chance to meet with any technical experts prior to the meeting. Discuss the agenda with your translator/intermediary prior to submission.
Each participant will take an opportunity to dominate the floor for lengthy periods without appearing to say very much of anything that actually contributes to the meeting. Be patient and listen. There could be subtle messages being transmitted that would assist you in allaying fears of on-going association.</li></li></ul><li><ul><li>Written material should be available in both English and Chinese, using simplified characters. Be very careful about what is written. Make absolutely certain that written translations are accurate and cannot be misinterpreted.
Visual aids are useful in large meetings and should only be done with black type on white background. Colours have special meanings and if you are not careful, your colour choice could work against you.
Presentations should be detailed and factual and focus on long-term benefits. Be prepared for the presentation to be a challenge</li></li></ul><li>Business Negotiations<br /><ul><li>Only senior members of the negotiating team will speak. Designate the most senior person in your group as your spokesman for the introductory functions.
Be prepared for the agenda to become a jumping off point for other discussions
Chinese are non-confrontational. They will not overtly say 'no', they will say 'they will think about it' or 'they will see'. </li></li></ul><li><ul><li>Chinese negotiations are process oriented. They want to determine if relationships can develop to a stage where both parties are comfortable doing business with the other.
Decisions may take a long time, as they require careful review and consideration.
Under no circumstances should you lose your temper or you will lose face and irrevocably damage your relationship.