Country Information

	General		WTO commitments
	Government		Investing and doing business in China
	Economic indicators		Accessing and entering China
	Reforms and national development

Accessing and Entering China
 

Why access China?

• All roads lead to China - the economic giant has awaken.

• World-wide focus in accessing the China market – enter NOW.

• No company would be considered global unless they are present in China.

• It is the world’s biggest market and center of economic growth in the new century - rapidly growing affluence and huge demand for products, services and know-how.

• It is the world’s 2nd largest economy based on income parity and is forecasted to surpass US in 2025 as the world’s largest economy.

• Annual GDP growth of ~8% for last decade and forecast to continue for decades to come.

• Accession to WTO will add ~4% (USD25 billion) to the annual GDP in next 2 decades.
  Commitment to WTO and global integration will improve business environment and market access and further attract investment to China

• Continuing reform and improvement in human resources and economic fundamentals will have a multiplying effect on productivity and economic growth.

• Government commitment to stability and provision of favorable business environment and investment climate.

• Economic globalization, regional integration and continuing economic liberalization from a planned to a market economy presents immense opportunities for trade, investment and co-operation for all large and SMEs with much untapped and unexplored potential and opportunities.

• Continuing low external debt, trade surplus and huge foreign exchange reserve.

• China will be the world center for manufacturing in the new millennium.

• Comparative advantage in production costs.
  In China inputs such as land, and wages are relatively cheaper.

• A market of 1.3 billion consumers with high saving rates.
  Large potential market size and increasing disposable income.
  Between 1990 and 1999, the following average annual increases were recorded:
  - urban per capita disposable income: 16.25%.
  - workers salaries: 16.33%.
  - consumer spending: 15.33%.
  (China Yearbook of Statistics)

• World’s No. 1 FDI destination surpassing US in 2002.
  Investors have top confidence in China as a destination of Foreign Direct Investment.
   

Key requirements for business success in China

China is a diverse market with different geographical characteristics (social, human, political and business practices) and levels of development – It is more like a European Union. 

Major Keys Common to Sustainable Success in China
 

• In-depth China knowledge & analytical information

• Linkages & relationships

• Capability to access market structures, mechanisms & channels

• Expertise to make business happen

Building of Business Structures & Mechanisms

• Partnerships

  • Long term = honesty + commitment + partnership maintenance

  • Mutual benefits & win-win

  • Understand the relationship drivers + expectation clarification
     

• Political Relationship

  • High level – needs intermediates + relationship maintenance

  • Understand relationship drivers + expectations + grey areas
     

• Market Channels

  • Understand the where of these channels lead to

  • Channel maintenance

Acquisition of Business Skills & Insights

• Acquire & analyze knowledge & information about China

• Develop insights into China business practices + laws & regulations

• Negotiation & deal making

• Bussiness processes

• Co-operation/Project development + deal making

• Interacting with different levels of people from government, business and academia who are keys to business success

•  Relationship building – different sets of skills are required for different levels and in different fields of business   

• Co-operation maintenance

• Networking

• Training + experience China + talk to experts

Awareness of Key China Business Issues 

• IP + trade marks + patent + copyright + standards & testing & certification

• Counterfeiting

• Contracts+ agreements + payment

• Dispute settlement & judicial System – courts + arbitration + enforcement

• Policy interpretation, implementation and enforcement vary from place to place

• Artificial barriers for trade, investment & co-operation + transparency

• Unfair competition + data reliability

• Establishing a presence [VO + RO + JC + JV + WFOE]

•  Marketing & distribution [Closed + regional variation]

• Investment – Language school or S&T Park

• Business scope & registered capital requirements

• China in transition + WTO + bilateral Agreements

• Foreign exchange laws and regulations for foreign companies

• Other artificial barriers

• Where to seek help

Development zones