This document discusses how to establish and run a successful business in China. It outlines the 5 steps to set up a foreign-invested enterprise, including applying for approval and registering with authorities. Minimum registered capital requirements vary by business type, from $12,500 USD for technology consulting to $62,500 USD for production. Invoices are required for taxation and "guanxi", the network of business relationships, is important for trust and cooperation. Overall success requires thorough market research and adherence to a sound long-term business plan.
As one of the world’s largest economies, China holds the promise of huge market potential and revenue opportunities for businesses worldwide. However, detailed planning is
critical for success in China.
Fostering Competitiveness of the Philippines to attract Foreign Direct Invest...Roby Camagong
This business report provides fact-based insights and analysis to help the Philippine government (Department of Trade and Industry and Philippine Central Bank) make the right decisions and trade-offs in making their economy more competitive to attract foreign direct investments from the US.
SMEs and Entrepreneurship: What can and do governments do?OECDglobal
Presented at the Regional Meeting on SME, Entrepreneurship and Access to Finance Indicators, organised by the OECD-MENA Investment Initiative, December 2011. http://www.oecd.org/mena/investment
A detail analysis on SME issues in Pakistan and recommendations on how to resolve financial issues. Understand how financial independence can be achieved through strategic financial planning. amerq.com
As one of the world’s largest economies, China holds the promise of huge market potential and revenue opportunities for businesses worldwide. However, detailed planning is
critical for success in China.
Fostering Competitiveness of the Philippines to attract Foreign Direct Invest...Roby Camagong
This business report provides fact-based insights and analysis to help the Philippine government (Department of Trade and Industry and Philippine Central Bank) make the right decisions and trade-offs in making their economy more competitive to attract foreign direct investments from the US.
SMEs and Entrepreneurship: What can and do governments do?OECDglobal
Presented at the Regional Meeting on SME, Entrepreneurship and Access to Finance Indicators, organised by the OECD-MENA Investment Initiative, December 2011. http://www.oecd.org/mena/investment
A detail analysis on SME issues in Pakistan and recommendations on how to resolve financial issues. Understand how financial independence can be achieved through strategic financial planning. amerq.com
Small and medium Enterprises (SMEs) play an important role in the modern economy; the research aims to identify the role of small and medium enterprises in the economic development in the Arab Republic of Egypt and identify the most important problems and obstacles facing these projects , The results show that, Egypt has 2.5 million small, medium and micro enterprises, representing 99% of the total non-agricultural projects, about 78% of these projects did not receive any banking facilities, The performance SMEs is very weak in terms of export to foreign markets. SMEs can contribute in the process of accelerating development because it does not require huge investments at the same time, and is able to increase employment and mobilize small individual savings, as well as help in the preparation of technical cadres. It also enables the development of exports, including the acquisition of foreign currency and thus improving the balance of payments of developing countries, in addition to their contribution to the formation of a balanced industrial sector that serves the national economy, However Small and medium enterprises in Egypt face many problems that limit the ability to develop them. This sector is still suffering from basic obstacles such as difficulty obtaining finance and guarantees, and many other difficulties related to the inappropriate business environment, laws and regulations, poor infrastructure and banking so that Egyptian government must put a clear approach and specific objectives for the development of these projects.
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.
Does Macroeconomic factors Impact on Foreign Direct Investment in emerging ec...AI Publications
Foreign direct investment is essential for economic growth of a country. It acts as a promoter for the economic development of a country. Keeping this in mind, the objective of this study is to determine the effect of macroeconomic variables such as interest rate, real exchange rate,inflation rate and stock market on foreign direct investment in Pakistan. For this purpose,study used the authentic annual data for the period of 27 years i.e. from 1990-2016. We are use for analysis E-View software, The empirical analysis involved using the ADF test to check the stationary of the data.Results revealed that interest rate and exchange rate have significant negative effect on FDI and stock market index has negative and unsignificant effect on FDI while inflation rate has positive and significant effect on FDI.
The whole data are collected from a report of SME Development in Bangladesh By East West University Bangaladesh.Some of data is deducted for present my slide easily. If you need any kind of information about SME Development in Bangladesh please search on internet get the actual data......thank u very much......assalamuwalikum owa rohmatullahi oba-rakatuh.......allah hafez
Joan Timeche presents "Beyond Casinos: Understanding the Business Climate on Indian Lands" at the free business journalism workshop, "Covering Business on Tribal Lands," hosted by the Donald W. Reynolds National Center for Business Journalism and the Native American Journalists Association.
For more information about free training for business journalists, please visit businessjournalism.org.
More information about this topic? Please visit our website: www.crossroads-global.com and sign up for our Doing Business with China webinar and open workshops.
Our business briefings and workshops, ‘ Doing Business in China’ , are ideal for professionals and teams who endeavour to build more successful business relationships with Chinese colleagues, suppliers and clients. Our China focused workshops and briefings will provide you with the tools to maximise the competitive advantage of doing business in China through a combination of in-depth background information on the China Business Culture and hands-on practical tips and solutions.
China is the most populous country in the world, yet one of the least diverse, with 92% of its 1.3 billion population of Han Chinese origin. This is a society where, under Communist rule, the individual has little power or privacy. Many Chinese are deeply religious, despite China being officially an atheist country. Confucianism – with its emphasis on loyalty, respect, benevolence and righteousness – remains the principal foundation of Chinese values. The population is relatively highly educated and the divorce rate one of the lowest in the world.
Living standards are improving, although mainly among the middle classes, and will continue to do so as China sits poised to become the next great economic superpower.
Wim Grosemans, Head of Product Management International Payments at BNP Paribas, presented a lunch session about FX Volatility at EuroFiannce Vienna on October 12th.
Small and medium Enterprises (SMEs) play an important role in the modern economy; the research aims to identify the role of small and medium enterprises in the economic development in the Arab Republic of Egypt and identify the most important problems and obstacles facing these projects , The results show that, Egypt has 2.5 million small, medium and micro enterprises, representing 99% of the total non-agricultural projects, about 78% of these projects did not receive any banking facilities, The performance SMEs is very weak in terms of export to foreign markets. SMEs can contribute in the process of accelerating development because it does not require huge investments at the same time, and is able to increase employment and mobilize small individual savings, as well as help in the preparation of technical cadres. It also enables the development of exports, including the acquisition of foreign currency and thus improving the balance of payments of developing countries, in addition to their contribution to the formation of a balanced industrial sector that serves the national economy, However Small and medium enterprises in Egypt face many problems that limit the ability to develop them. This sector is still suffering from basic obstacles such as difficulty obtaining finance and guarantees, and many other difficulties related to the inappropriate business environment, laws and regulations, poor infrastructure and banking so that Egyptian government must put a clear approach and specific objectives for the development of these projects.
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.
Does Macroeconomic factors Impact on Foreign Direct Investment in emerging ec...AI Publications
Foreign direct investment is essential for economic growth of a country. It acts as a promoter for the economic development of a country. Keeping this in mind, the objective of this study is to determine the effect of macroeconomic variables such as interest rate, real exchange rate,inflation rate and stock market on foreign direct investment in Pakistan. For this purpose,study used the authentic annual data for the period of 27 years i.e. from 1990-2016. We are use for analysis E-View software, The empirical analysis involved using the ADF test to check the stationary of the data.Results revealed that interest rate and exchange rate have significant negative effect on FDI and stock market index has negative and unsignificant effect on FDI while inflation rate has positive and significant effect on FDI.
The whole data are collected from a report of SME Development in Bangladesh By East West University Bangaladesh.Some of data is deducted for present my slide easily. If you need any kind of information about SME Development in Bangladesh please search on internet get the actual data......thank u very much......assalamuwalikum owa rohmatullahi oba-rakatuh.......allah hafez
Joan Timeche presents "Beyond Casinos: Understanding the Business Climate on Indian Lands" at the free business journalism workshop, "Covering Business on Tribal Lands," hosted by the Donald W. Reynolds National Center for Business Journalism and the Native American Journalists Association.
For more information about free training for business journalists, please visit businessjournalism.org.
More information about this topic? Please visit our website: www.crossroads-global.com and sign up for our Doing Business with China webinar and open workshops.
Our business briefings and workshops, ‘ Doing Business in China’ , are ideal for professionals and teams who endeavour to build more successful business relationships with Chinese colleagues, suppliers and clients. Our China focused workshops and briefings will provide you with the tools to maximise the competitive advantage of doing business in China through a combination of in-depth background information on the China Business Culture and hands-on practical tips and solutions.
China is the most populous country in the world, yet one of the least diverse, with 92% of its 1.3 billion population of Han Chinese origin. This is a society where, under Communist rule, the individual has little power or privacy. Many Chinese are deeply religious, despite China being officially an atheist country. Confucianism – with its emphasis on loyalty, respect, benevolence and righteousness – remains the principal foundation of Chinese values. The population is relatively highly educated and the divorce rate one of the lowest in the world.
Living standards are improving, although mainly among the middle classes, and will continue to do so as China sits poised to become the next great economic superpower.
Wim Grosemans, Head of Product Management International Payments at BNP Paribas, presented a lunch session about FX Volatility at EuroFiannce Vienna on October 12th.
This pp presentation seeks to explain the basics of floor trading on commodity exchanges. It also explores the various roles in the industry and how different trading decisions are made
As globalisation continues to drive the need for international payments, corporates are focusing on the underlying FX as well as the payment itself. Increasingly, they require their banks to offer fully integrated payment and FX platforms.
BNP Paribas’ new cross-currency solution is designed to meet these requirements.
This presentation addresses the following four solutions which result in improved foreign currency management:
· FX in global disbursements.
· Foreign currency account consolidation.
· Making efficient cross border payments.
· Cross currency cash pools.
Running head WHILE IN CHINA1WHILE IN CHINA7.docxagnesdcarey33086
Running head: WHILE IN CHINA 1
WHILE IN CHINA 7
While in China
Name:
Institution:
Abstract
An opportunity to have a foreign partner to oversee business in the foreign country is not one that should be taken lightly. Almeida Supplies, aware of the fact, sent me, along with a team of delegates, to oversee the meeting that would see the pilot investment kick off. Before leaving for china, it was necessary to understand the do’s and don’ts in the Asian country. With the facts at hand and known to every member of the delegation, it would be easy to interact with the partners in china without mishaps. The paper contains a brief introduction of why china was chosen as a destination and the cultural practices of the Chinese people to watch out for.
Globalization has opened doors to a lot of opportunities with many firms across the globe seeking to have investments in foreign countries. Foreign investment is not only useful as a source of extra revenue but is also a safety haven. In the event that the economy in the domestic country turns sour, there would be a source of solace for the company in the country in which the foreign investment is. As such, while choosing a foreign country in which to invest in, among other factors, the investor should consider how well the economy of the destination country is doing (Collins & Block, 2011). Following major research into markets and ease of doing business, Almeida Supplies settled for China as a destination for the company’s pilot foreign investment.
The decision to head east was based on the fact that China is not only a populous country, but also one that has become a hub for foreign investment. In the year 2014, for instance, foreign investment in the country increased by 4 billion from the previous year (Hannon, 2015). The case did not only happen within one year but, rather, started as early as 2002 (Worm, 2008). Almeida considered the fact that one must set up a business in an economy where he or she shall feel welcome to conduct the business in the case that he or she is to make any substantial profits. Once all the required arrangements were made, it was clear that there needed to be a partner in China to help the company run its business. Working with an individual who knows the needs of the Chinese people would help Almeida have an upper hand in the Chinese market compared to other foreign companies.
The delegation to China to meet the investment partner, however, has to be aware of the do’s and don’ts in the country if the meeting between them is to end up in a mutual understanding. An understanding of the cultural ways of the Chinese people is important in aiding the events of the meeting. The fact that the delegation would be dealing with people from an entirely different culture would call for them to know what is regarded and disregarded in the said culture. As the leader of the team, I made clear the do’s and don’ts while in china.
The Do’s
Punctuality is not only a necessary in.
1Running head INTERNATIONAL BUSINESS PRACTICESMGM3552.docxeugeniadean34240
1
Running head: INTERNATIONAL BUSINESS PRACTICES
MGM355 2
MGM355-1403B-02
International Business Practices
Roderick D. Goodrum
Individual Project Phase 5
Colorado Technical University
Instructor: Lester Willis
09/17/2014
Introduction
Establishment of a business in a foreign land depends on strict evaluation and analysis of various factors inclusive of; the barriers to entry in the foreign nation, the legal systems, customer base, potentiality of growth, economic performance, and the cultural framework of the natives there. Failure to scrutinize such factors might impact success of the business negatively (Schill, 2014). This paper discusses the factors that a regional bank needs to consider before expanding into a foreign nation, China for this case. It uses Union Bancshares (UNB), a Californian based regional bank as an example.
Possible challenges in the new environment
This may be analyzed in three perspectives; educational discrepancies, cultural differences, and other social demographics. Culture refers to the values and norms held by members of a given society; the good and the bad defined by a society. Cultural conflict is felt a great depth in the work place, if the workers therein are from different ethnic origins. For UNB to ensure it gains a positive reputation in the public sector, the company’s management will need to employ workers from diverse cultural setups. Despite this move being positive in some way, the conflicts arising in the work place due to differing cultural expectations might hamper work progress negatively leading to poor performance. Another challenge is education level of potential employees within the locality within which the company plans to establish itself. Specific technical personnel might be inadequate in China compelling UNB’s management to outsource workers from far geographical locations, this is a costly process.
Legal and political environments
The legal systems in China are flexible rather than static. This poses a great challenge to foreign investors since laws regarding foreign investors might change negatively at the time of their investment. In People’s Republic of China, laws governing the business sector are made in the National People’s Congress (NPC) and the judicial system is vested with the power of ensuring all parties comply. When making a foreign direct investment, the first step is to describe in detail the pros and cons of the business to China’s economy, if the pros exceed the cons then the business is listed under the permitted category as long as all other factors have been fully satisfied. China is a politically stable nation despite its long term poor relation with Taiwan. This is a positive indicator for UNB since business operations are not likely to be disrupted due to political clash.
Government involvement in the private sector
A comparison to the US business practice is made to gauge the level with which the government intervenes in private businesses in Peop.
IN THIS SUMMARY
Over the past few years, China has transformed itself into a powerful, consumer-oriented culture, and many Western companies have flocked to China to take advantage of this new marketplace. However, entrepreneurs from the United States and Western countries often fail to realize that transacting business in China is a far cry from making deals at home. Ted Plafker, a Beijing correspondent for The Economist, leverages his extensive experience in Chinese culture and entrepreneurship to offer a primer for newcomers who are planning to expand their business into China. According to his book, Doing Business in China, “As many foreign companies have already proven, success in China is possible, but only for those with the patience, persistence, and resources to see it through.”
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Dealing with Chinese Investors can be challenging. In this presentation Vincent Shi, Partner at Hanrick Curran, shares his perspective on successfully working in the asian market space.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
In the Adani-Hindenburg case, what is SEBI investigating.pptxAdani case
Adani SEBI investigation revealed that the latter had sought information from five foreign jurisdictions concerning the holdings of the firm’s foreign portfolio investors (FPIs) in relation to the alleged violations of the MPS Regulations. Nevertheless, the economic interest of the twelve FPIs based in tax haven jurisdictions still needs to be determined. The Adani Group firms classed these FPIs as public shareholders. According to Hindenburg, FPIs were used to get around regulatory standards.
An introduction to the cryptocurrency investment platform Binance Savings.Any kyc Account
Learn how to use Binance Savings to expand your bitcoin holdings. Discover how to maximize your earnings on one of the most reliable cryptocurrency exchange platforms, as well as how to earn interest on your cryptocurrency holdings and the various savings choices available.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
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Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
11. Guanxi is Important Guanxi stands for any type of relationship Guanxi is also the network of business relationships that supports one another The Chinese are not for sale.
12. How Guanxi is Established First: Guanxi is NOT based on money. Treating someone with decency while others treat him/her with disrespect will create good Guanxi. Second: Always being trustworthy no matter what happens establishes good guanxi. Chinese are much more inclined to do business with people they trust.
13. How Guanxi is Established Third: Frequent contact with each other fosters understanding and emotional bonds. The Chinese feel obligated to do business with their friends. Gifts Reinforce Relationships It is natural to give small gifts to people we like. Such gifts are not bribes.
14. Building Guanxi Honor and observe traditional Chinese Holidays.
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17. Mid-Autumn Festival Chinese Thanksgiving. It falls on the 15th day of the 8th lunar month, usually in October. Contact your friends!
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Editor's Notes
China became the largest consumer market in 2004. For example, more than 5 million automobiles were sold in 2004: third behind US and Japan. Most were made in China.
This is the most economically developed part of China. Most overseas Chinese you meet will be from here.
This is what I will talk about. Most of my time will be on the last topic: Starting and running a business in China.
It is possible to launch a business within a few weeks -- but it is wise to take one’s time and to do “due market diligence.” This means actual on-site investigative visits and long conversations with persons who can be trusted to tell the truth. .
It takes very little capital to start a business in China.
This is what one looks like. The stamp is called a “CHOP.” Nothing is official until it has been chopped.
Do not be surprised when a crook steals from you and tells police everything was your idea and you made him commit illegal acts.
Business income tax is like the American Corporate tax. Americans use LLC and “”S” corporations to avoid this tax.
Some businessmen keep two sets of books: an official set for tax purposes and books that tell the truth. That is illegal and is prosecuted when discovered. Chinese tax revenues are increasing rapidly so there must be compliance with tax laws.
China is a collective society and relationships are very important.
Americans give gifts during certain holidays, birthdays and so on. This is the same thing. Gifts are used to cement relationships.
People who only show up when they want something are not trusted.
Chinese Christmas
At the very least send a card.
Stories from 5 years ago may have no relevance to today.
There is no single Chinese market. China has a many cultures and languages. Identify a specific market and to then develop products and services that meet the needs of that market segment. Look for niches.
Young people expect to succeed in their new China. They are very proud of what China has become. They feel the same way about China that Americans feel about America.
When a manager brings his own staff with him realize that his staff will be loyal to him -- not to you or your company. Make sure all new hires understand who hired them and who controls their salary and benefits. Guanxi can destroy a company if a manager leaves and takes his staff (and your proprietary information) with him.
Communication is the key. This is complicated by the fact that China has many different languages and no one speaks them all. People who do not speak the local dialect must associate with trusted persons who do or they will not know what is happening.
Foreign companies that set unrealistic goals replace the first manager because he can’t meet those goals. The second manager also gets fired. It takes a third manager before foreigners understand the truth of the matter. By then it may be too late. Western type performance appraisals may not have the desired effect. They may cause key employees, and their friends and all your proprietary information, to leave. In China it is necessary to save the face of key employees if you want them to remain loyal to you and your organization.
This Audi was developed for the China market. Audi did not assume that an Audi designed for unlimited speeds on German autobahns would appeal to Chinese customers who drive slowly and carefully for short distances.
If there are sharks in the shallows the first swimmer into the water will be eaten. In an emerging market it is often the “Near-Follower” who makes the most money. A near follower does not have to pay the cost of market research, knows what does and does not work and has customers who know about and want the product and service.
Confrontational in-your-face negotiation is how many Chinese begin discussions when buying everything from food to major appliances. They are not being rude -- they are establishing their status as a person who will not be cheated. Things are getting better. Chinese negotiators are becoming more sophisticated. Many now have a better idea of what is reasonable. This not America and if conditions change in a way that gives unfair advantage to one party the courts may void the contract.
Good detailed notes are essential. People remember what they wanted to hear -- not necessarily what was agreed to. Patent law is a major problem. While it will be impossible for Chinese businessmen to export things you have patented to America, Europe or Japan they may only want to produce and sell in China. Make sure all patents are registered in China as otherwise you may have to buy your patent back. Your option will be to make a slight change and immediately patent your “new” product in China.
The one thing each of us can do is control our personal attitude. No one can control the attitude of anyone else. Make sure you have trustworthy partners who speak the local dialect. Otherwise you may not know what is really being said. Family is an issue. Coming home to an unhappy family can make it impossible for anyone to do their best.
Guanxi is important. Guanxi is based upon mutual trust and respect.
Corruption is severely punished. Make it difficult for an honest person to steal. Know how much revenue ought to result and how much things ought to cost and question discrepancies.
The Chinese government is trying to bring economic development to the interior of China. Tax concessions are used to make it economically advantageous to move locate there. Local officials may be so eager to land a foreign invested enterprise that they make promises they later learn can not be delivered. You need to check this yourself.
Having good documentation is important in China because the need is to hire good people in the beginning and to keep them long-term. Continuity of management is very important given the reliance on Guanxi.
All Wuyi graduates speak, read and write English and that is becoming the norm at major Chinese universities. The need now is find people with good management skills or at least a management degree.
American “At-Will” employment and location does not legally exist in China. Some foreign-invested enterprises have found that they could not hire some of their very best casual employees. These “go-getters” were working two jobs and therefore illegal.
A person can live well in China on these salaries.
The cost of living is low except for automobiles. They cost about the same as in America.
Many American expatriates come to love China and want to stay. That is laudable but not making it possible for competent locals to move into top management positions is not. Mentoring is essential. The ideal situation is to groom a local until they can take over.
The greater Asian market, that is China and Japan together, are much larger than America or Europe. Chinese leaders are trying to establish Sino-Japanese harmony but it is hard to do. At this time Japanese GDP is much larger than that of Greater China (includes Hong Kong and Taiwan).
Reform of State Owned Enterprises is a very big concern. Businesses with competition thrive – but Chinese leaders know most of the State Owned Enterprises in Russia were taken over by organized crime and most former employees, and the nation are worse off. More than 30% of all SOEs have been privatized.
Counterfeiting is a problem. In a collective society, like China, keeping good things to oneself is considered selfish so many people do not consider copying things like software from wealthy foreign companies to be stealing. Joining the WTO is changing this view of the world – but it is difficult to change culture. Chinese leaders are very aware of pollution and things are getting better. Polluters are now being punished.
One child means there are going to be a lot of old people depending on their one spoiled child for support after mandated retirement. Everyone is forced to retire at 60 and people are living longer.
All national leaders remember the excesses of the Cultural Revolution and famines it produced. They will not tolerate any behavior that might return the nation to that chaos. Decisions are very hotly and publicly discussed. For example, sexual harassment has been identified as a problem and laws are being debated and written to make it a crime. The military was recently forced to quit interfering with private enterprise. China has reduced the size of its military 50%.
Many people believe the growing crime rate is a direct result of unemployed former State Owned Enterprise employees trying to obtain enough food and money to survive. Small property crimes make big news because they are so rare. We hope that doesn’t change.
Many families devote almost half their total income to purchase of additional education for their children. They “make do” with what they have to give their children an opportunity to do better than them. People will spend more on themselves when their children are grown and when they have faith in their long-term economic prospects. Big projects, like the Three gorges dam and Expressway construction, are near completion.
It has been said that “A rising tide raises all boats.” Economic development is a Chinese is a rising tide.
One reason people come to China is these amounts are very small compared to what it will cost in most other places. Keep everything above the table.
The key to success is to have a sound business plan and common sense.