Doing Business in China

Doing Business in China

To ensure a successful business operation in China, these tips should guide you;

• As the use of false degree certificates is an habitual practice in China, whenever you want to employ any Chinese citizen, critically examine their transcripts;
• Ensure that all goods and services are copyrighted in China. The spillage of intellectual property and the capability of corporate enterprisers to establish competition in order to get ahead of foreign companies is a common feature of Chinese locals;
• As small enterprises and family-owned business ventures are a common sight in China. The person in charge of these types of firms are more than often involved in every decision so it is advisable to involve the head of the firm in business transactions. It is as well respectable to involve the senior and elder members;
• Maintenance of one’s dignity is a necessity to Chinese business. All derogatory or contradictory comments should be made secretly and the correction of business partners should be tactfully and carefully done so as to maintain your dignity. Fee negotiation can be a great factor that would lead to disapproval and ensure you negotiate carefully in order not to get your business partners pissed off;
• Physical contact is not a common feature of business transactions. As such, every form of physical contact should be avoided;
• The exchange of business cards is a necessary feature of Chinese business tradition and carrying out business transactions in China. At every meeting, a business card should be given to everyone attending. When presenting a business card, the usage of both hands with the front of the card facing the recipient and when colleting a business card, inspect the card and give your opinion about the card. These denote respect. It is advisable to have a side of the business card written in Chinese if you frequently do business in China;
• You are advised to always use and sign contracts of service during China company setup because not all local China firms know the pros and cons of international trade;
• You are advised to throw ceremonies over a new achievement in your business with your partners as eentertainment is a common feature of Chinese businesses and a necessary part of doing business in China. This can be done over a traditional Chinese banquet either lunch or dinner which is always an eight course meal with people seated on a round the table;
• To prevent a bad beginning, do not look too serious when dealing with Chinese business men. Rather, always have a smile plastered on your face as it is equivalent to an handshake for citizens of China;
• China locals like to interact on issues not pertaining to business before going into business matters unlike westerners. So, you are advised to befriend your Chinese clients;
• In order to take maximum advantage of your new business located in China, you are advised to perform a feasibility study, interact with the Chambers of Commerce in China, make a well detailed business programme, talk to your local embassy in China and communicate with our clients who successfully have started their business ventures in China;
• For Non Chinese companies that want to establish a firm in China, it should be noted that that the market facts and statistics are not usually accurate, business transactions usually take more time than contemplated, complicated business methods is an habitual practice in Chinese businesses and persistent and lengthier visits to the market should be made;
• Your shareholder in China should be someone that contributes immensely to the growth of your business and not just someone in that post because you want to meet the rules for the establishment of a foreign owned firm in China;
• It is necessary to know the types of China licenses and registration that is suitable for your company when you want to undergo China business registration. This can be complicated because the local, state and national government handle the registration and licensing for different aspects of your business venture;
• Patience is an essential key for a successful business venture in China as all businesses deal with government agencies. This is where patience is needed because the judgements of these agencies are final and cannot be questioned.