Общее комплектуя штаты ошибки в Китае, и как избежать их
Будет медленным днем новостей - кроме то всего одн-год-к-идет вещь - и пока мы были уговорены для того чтобы побежать с этим рассказом от повседневности Shanghai, более лучшие ангелы нашей природы превалировали и вместо, мы решили переиздать выдержку от наших популярных «общих ошибок и misperceptions инвестируя в Китае - и как избежать их» вопрос инструктажа Китая с июля в прошлом году.
Общие ошибки PRI использовании китайского штата установить вверх или руководить вашу компанию
Класть их в управление всего
Да, может быть очень полезно иметь что всегда-так-славн-и-эффективная местная китайская помощь персоны вы с всеми аспектами устанавливать - вверх по вашим деятельностям Китая, включая все дело лицензирует, офисы, счеты в банке, регулируя всю документацию и так далее. Язык и канцелярщина почти unintelligible и вы будете многодельным корпоративным экзекьютивом. Но ожидание; будет нормальной бизнес-практикой где-либо иметь одну персону в управлении всех аспектов ваших деятельностей страны? Нет, оно не, и с очень хорошей причиной.
Их способности не могут протянуть далеко как международные правомочности
Хотя они могут в действительности быть честны и полезны, дорога в которой иностранные компании должны быть administered в Китае, и сообщая структурах они должны пойти до конца, отличите очень те которые китайские компании должны придерживаться слишком.
В реальности, чужие дела в стороне Китая значительно больше вникновения чем китайские компании делают. If your employee, good as they are, is not familiar with the regulatory aspects concerning operating and maintaining an international office or business in China, chances are there will be issues your company will immediately be out of compliance with. That can and does get expensive. Additionally, there are circumstances where the employee may deliberately keep the company out of compliance – to obtain benefits or other leeway later if any argument arises against their favor later on.
Having one person in control of all your corporate documents and/or banking
Very common. The risks are obvious. You can lose all your abilities to operate the company overnight if he/she decides to walk out of the door. Plus all your money.
Insertion of family and friends into your supply chain
This is very common. You need to audit your purchasing and sales departments regularly to ensure employees are not placing orders with companies owned by friends or relatives that are then charging your business at rates well over the market odds.
Setting up of parallel businesses
In one particularly nasty case we were called in to investigate, two Canadian-Chinese were hired, having worked for the parent company overseas for several years, to establish a China manufacturing entity. This they did, however the China business never was able to attain anywhere like the projected sales, and had to be continuously funded from the parent to tide it over. A variety of “market conditions,” “competitor pricing” and so on were given as excuses. When, just before a new US$1 million investment was to be injected into the China entity, the parent decided just have a quick look-see internal audit – things started to become clear. The two trusted employees had established a mirror company, with similar sounding Chinese name to the international brand, and had been diverting all orders to that business instead. “Local competitive pricing” indeed. From a business the staff themselves had established to compete with their employers.
Common mistakes when hiring expatriate employees to set up and run your China entity
There are problems with expatriate staff as well. Especially, (and unfortunately) often with personnel in professional services.
Hiring lawyers with no China experience
Expensive, and not really much point, especially if their Chinese language capabilities are minimal. However, many look good, and although their firms may have a China presence, what about their individual presence in China? International lawyers are great at international work – cross border structuring and so on – but far too many of them profess expertise in areas of China practice they are neither qualified or experienced to be dealing with. Are you looking for a salesman selling his firm, or proper advice? Really, if you need to hire a lawyer with China experience – go to a firm that has the real thing. That’s what they are there for, and China has had private lawyers now for 15 years - Google their names to see how well known they are.
Hiring personnel On their language skills alone
Well, everyone has to start somewhere. But a new kid just out of language school is still a new kid out of language school, and will have no experience dealing with the “China issues.” Don’t expect miracles. And two years in China does not an expert make. Young graduates do have skills of course, but don’t weigh them down too much with managerial responsibilities before they have had time to adjust them to a commercial business environment and have found their feet around your business. A management development program designed to maximize on their language skills yet introduce them to your business will reap greater rewards both for you and for them if you treat them with continuing educational attention.
The China guys
Expats of note are those who really know their way around, and can steer you away from all the problems. They will have a good grasp of the language, and may well have settled down with family here. You cannot survive in China without knowing how to get on, and this is a matter of experience as well as possessing inherent patience, tenacity and people and communications skills. They are available – interestingly at this time, many of the established multinationals are localizing and expatriate engineering and other talent is perhaps more available in China than ever before.
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This article was kindly reproduced with permission from Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates, and originally appeared in “China Briefing” magazine. China Briefing is a complimentary monthly China business law & tax publication geared to the foreign investor in China. Free subscription, access to all archives and the award winning China Briefing Blog are all sited here: www.china-briefing.com The Dezan Shira & Associates website, detailed matters of foreign investment law and tax, may be accessed here: www.dezshira.com. The firm operate eight China national offices and service over 1,600 clients from 76 different countries throughout the PRC. They specialize in handling SME’s and medium cap investments into China. Chris Devonshire-Ellis is one of China’s best known foreign investment lawyers, and has been based in China for over 20 years. He lives in Beijing |




































August 28th, 2007 at 5:29 am
one thing is very important , even you don’t believe Chinese , you have to pretend you trust him.
August 29th, 2007 at 8:01 am
Very good and insightful article. You did well to get Chris Devonshire-Ellis to comment, he’s one of the best known China lawyers.
August 29th, 2007 at 8:12 am
Thank you for this article, very interesting and useful. Good advice.
August 29th, 2007 at 8:15 am
China Briefing is an excellent resource and it’s free. You can get the subscription at www.china-briefing.com and also the blog there is very good - they just won an award as best China business law blog from Chinalyst. Strongly recommended reading.
August 29th, 2007 at 8:17 am
Also their www.chinaexpat.com site is useful for business travel. Thanks for getting the staffing HR thing up that was a good read and a lot of common sense. Love the bit about the foreign lawyers!!!!
August 29th, 2007 at 8:22 am
Some good material for foreign company HR departments.
August 29th, 2007 at 9:02 am
Good reading, thank you. Can you get more from Chris Devonshire he’s a good commentator on China business and well respected
February 25th, 2008 at 1:30 am
@ Andrew: I will have to correct you on one thing here. Chris is not a lawyer. He publishes on law issues but is not registered as a sollicitor in Scotland or the UK.
He is one of China’s best known business consultants