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    Posted May 6, 2014 by

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    Doing Business in China

    Since the 1840s, Western companies have dreamed of the riches a country as large and – since 1978 – as dynamic as China would generate for them. Some have succeeded: General Motors would have found it much harder to re-emerge from bankruptcy without its profits from China. Many, though, have found the going to be tough and the rules of the game, difficult to comprehend. The following are ten insights intended to help your business be successful in its China operations. Today China is a huge country with huge potential of business. Flexible business climate, safest investment environment is a main what defines China as world's most favorite place for business. In last several years i worked and currently working with Chinese companies and they are best contractors for me and for my company. According from this all information i think some of major advices from me will be asset for readers of this report.

    First of all to analyze opportunities in china you must visit China several times and spend there a lot of time to find more interesting points for your business to start expand it.

    Your business expand in China will pass the following steps to analyze:

    Do your research:

    - Firstly, consider what your company’s objectives are in China and carefully research your target market before developing a formal business plan.
    - Discuss your strategy with a local representative who understands the market and economic conditions.
    Consider the unique selling points of your product or service and whether there is actually a market for that product or service in China.
    - Exporters will also need to deal with Chinese tax, accountancy and employment law, and China’s transport infrastructure and commercial legal system.
    - Understand the basic Chinese regulations which govern your industry or investment in China. Companies are often constrained in how flexible they can be due to the regulatory environment.
    - The Internet can be an invaluable tool when it comes to researching country and market information before you even begin to formulate your strategy.

    Develop a market entry strategy

    - When determining your market entry strategy, consider recent market trends and keep in mind your long-term and short-term requirements for infrastructure, labour and your customer base. Remember China is changing at a rapid pace and it is essential your research and market information is up-to-date.

    - Don’t automatically assume Beijing or Shanghai should be your target markets. Many other regions of China are substantial markets in themselves and competition can be less intense. It is therefore advisable to treat China as a global region in its own right and focus your initial market entry approach on a particular region or city.

    - Potential Chinese business partners are often more interested in the cost-effectiveness of the product rather than the product itself, so it is important to be able to demonstrate how the product can save money.

    - Choose the right partners. In-market contacts are often more important than product and price.

    Business etiquette

    - Building up good business relationships and trust is very important in China, so expect to spend a lot of time at meetings and banquets with your potential business partners.
    - Business meetings always start promptly, so it is important to arrive early for the standard formal introductions. It is usual to be introduced to the most senior person at the meeting first, followed by the others in descending order of seniority.
    - A handshake is the standard way to greet men and women, whatever their age or seniority. Note that the Chinese respect their elders, so an extra show of courtesy in the presence of an older person will reflect well on you.
    - Business cards (ming pian) are essential in China
    - When meeting potential business partners, it is helpful to know some Mandarin. Simple phrases such as ‘Ni hao’ (hello) ‘Zao shang hao (good morning) and Xia wu hao (good afternoon) can go a long way. Note that surnames are placed first, eg. Mr Yao Ming should therefore be addressed as ‘Mr Yao’.
    - A great deal of business in China is conducted over dinner, where very senior people may attend who were not at previous negotiations, but are key to the approval of a business deal. However, business dinners or lunches can also indicate a general warming of a relationship, and in this case, their role should not be over-stated.
    - Never begin eating or drinking until you host does. It is polite to try all dishes that are offered to you, but you can discreetly leave anything you don’t like at the edge of your plate.
    - Dinner speeches and frequent toasts are standard, with locally produced wines or ‘bai jiu’ spirit the usual drinks for toasts. It is customary for toasts to be made by both sides during the meal.
    - The Chinese generally like to give small and inexpensive gifts.
    - Chinese negotiators are shrewd and know that foreigners will be reluctant to travel home from China empty-handed.
    - Try to speak with your counterparts in short, simple, and jargon-free sentences.

    As everywhere doing business in China has it's risks. There include:

    - Commercial Fraud
    - Breaches of Contract
    - Intellectual property infringement and theft
    - Bullying, intimidation and threats to physical safety
    Restrictions on movement

    To minimize your risk for doing business in China you must:

    1) Seek professional legal advice
    2) Undertake due diligence checks
    3) Seek trial shipments and arrange pre-export inspections.
    4) Protect your IPR

    I hope here is full outline about people who are interesting to do business in China.


    Irakli Berdzenadze
    I.B. Capital Management

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