Business Insights: China: Practical Advice on Entry Strategy and Engagement (Business Insights)

Increasingly open to foreign investment and with a burgeoning consumer market, China represents an enormous commercial opportunity -- but how can businesses succeed? Business Insights: China gives you an overview of the corporate business achievements already made in China and a comprehensive guide to the opportunities available for other businesses, wherever they are in the world. Based on the real-life experiences of, and lesson learned by, companies who have moved into the Chinese business arena, the book highlights the successes and failures of operating in such a challenging market. With practical advice and many comprehensive case studies, Business Insights: China offers invaluable assistance for anyone looking to initiate or develop their business activities in China. Half title page......Page 1 Title page......Page 3 Imprint......Page 4 Contents......Page 11 Contributors......Page 29 Foreword......Page 33 Introduction......Page 35 Part 1 The economy......Page 37 1 The economy – China’s long march......Page 39 The domestic economy......Page 40 Other macroeconomic indicators......Page 47 2 China’s foreign trade......Page 49 Foreign trade in merchandise and services......Page 50 Merchandise trade by product and partner......Page 52 Current outlook......Page 59 3 Inward and outward investment......Page 60 Inward investment......Page 61 Outward investment......Page 64 Overview......Page 67 Trade performance......Page 68 Competition......Page 69 Intellectual property rights (IPRs)......Page 71 Threats to the WTO......Page 72 5 Hong Kong – Asia’s business capital......Page 73 Hong Kong 10 years on......Page 74 Which companies flourish in Hong Kong......Page 78 The National People’s Congress......Page 81 President of the PRC and the administration......Page 82 The ministries and state commissions......Page 84 Local government......Page 85 Chinese whispers of change......Page 86 7 China’s place in the global economy......Page 88 Structural defects and weaknesses of the economy......Page 89 The statistical argument......Page 92 The return of protectionism......Page 93 The political dimension......Page 95 Part 2 Basic business issues......Page 97 Introduction – reasons for China outsourcing and investment......Page 99 Risk and the lawyer in the Chinese environment......Page 100 Types of risk......Page 101 Risk management: checklist for outsourcing in China......Page 107 Conclusion......Page 110 Introduction......Page 111 Personal relationships are paramount......Page 112 Understanding Chinese business relationships......Page 113 Good practice in building relationships......Page 114 Developing relationships into business......Page 115 10 Preparing for IP management in China – staying out of trouble......Page 117 Getting into a good IP position for China – is your IP China-resistant?......Page 118 Due diligence – homework on your partners......Page 122 Good contracts......Page 123 Preventative measures......Page 124 Conclusion......Page 125 Background......Page 126 IPR education in primary and middle schools......Page 128 Collaborative industry IPR education partnerships......Page 130 Future plans......Page 132 The deal environment today......Page 133 The ‘softer’ aspects of deal-making in China......Page 135 Case Studies......Page 137 Introduction......Page 141 Strategy......Page 142 Gathering intelligence......Page 143 The enforcement toolbox......Page 144 Conclusion......Page 148 Setting up accounts in China......Page 149 Borrowing in China......Page 154 FCY conversion/remittance......Page 156 Part 3 The investment environment......Page 159 Partner availability......Page 161 Partner selection......Page 162 Entering JV negotiations......Page 166 Search and selection......Page 169 Preliminary negotiations......Page 171 Conclusions......Page 172 A digest of Chinese company law......Page 174 Foreign-invested enterprises (FIEs)......Page 177 The structure of JVs......Page 181 The role of lawyers in joint venture negotiations......Page 183 Development of accounting regulations......Page 185 Auditing requirements and standards......Page 186 Managing your accounting and audit issues......Page 187 New tax regime......Page 189 Application of the new tax regime......Page 190 Part 4 Joint venture management......Page 193 20 Managing joint ventures......Page 195 Appointing the general manager......Page 196 Other key management appointments......Page 198 EJV board meetings......Page 199 Day-to-day management......Page 200 Background......Page 204 Infrastructure growth......Page 205 Arup in China......Page 206 Introduction......Page 210 Are the problems faced in China unique to China?......Page 211 Communication......Page 212 The language barrier......Page 213 The importance of ‘face’......Page 214 The expatriate cycle......Page 215 Concluding comments......Page 216 Background......Page 217 The MG Rover takeover......Page 218 Global brand management......Page 219 Culture differences......Page 222 Accountancy, insolvency, tax and debt collection......Page 223 Joint ventures......Page 225 Labour and staff issues......Page 226 In praise of food......Page 227 Rolls-Royce......Page 228 Sigma Precision Components......Page 230 Westwind......Page 231 Strix......Page 233 BLP......Page 235 Hornby......Page 236 Part 5 Service provision and trade with China......Page 241 Introduction......Page 243 SGAI – on-the-ground control......Page 244 How to do business......Page 246 Introduction......Page 248 The heavy-duty truck project......Page 249 Introduction......Page 253 The market opportunity......Page 254 Operating an onshore reinsurance company in China......Page 256 Conclusions......Page 257 Introduction......Page 258 On appointment......Page 259 Ongoing management issues......Page 262 Introduction......Page 266 Why China?......Page 267 Issues and concerns......Page 270 The next stage......Page 272 Conclusion......Page 273 Virgin......Page 274 Watts Urethane Products......Page 277 Menzies Aviation......Page 278 CEL International......Page 280 Sassan Ceramic Designs......Page 282 Sheffield United......Page 284 Appendix I International accountancy and law firms with offices in Mainland China and law firms with offices in Mainland China......Page 287 Appendix II British Chambers of Commerce in China......Page 295 Appendix III British universities and business schools offering Chinese Studies......Page 297 Appendix IV Useful business and trade organizations in the UK and China......Page 302 Appendix V Contributors’ contact list......Page 308 Index......Page 312 Index of advertisers......Page 316 Increasingly open to foreign investment and with a burgeoning consumer market, China represents an enormous commercial opportunity but how can businesses succeed? Business China gives readers an overview of the Chinese economy and its business opportunities, the past, present, and future of Chinas economy; business issues all businesspeople will encounter; the investment environment; joint venture management; and service provision and trade. Based on the real-life experiences of, and lessons learned by, companies who have moved into the Chinese business arena, the book highlights the successes and failures of operating in such a challenging market. With practical advice and many comprehensive case studies, Business China offers invaluable assistance for anyone looking to initiate or develop their business activities in China. Includes real-world examples of corporate successes and failures, an overview of regulatory developments, details on importing and exporting, as well as commentary from companies operating in China