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

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