In the Western world and especially in the Netherlands, open exchanges of view and fair discussions are very common. This sort of verbal interaction has a positive positively interpreted connotation. It is a proof the discussion partner is interested in you and your opinions.

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Joint Ventures, in this specific context, refer to a registered legal entity cooperation between at least one foreign investor and Chinese investor. Previously, this structure was more common, though it has been steadily decreasing due to the disadvantages set out below.

Joint Ventures can be classified into two different types:

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A simple taxi ride from Shanghai to Suzhou put me very much in mind of developing contracts with Chinese – even the simplest of contracts. Very seldom in business do Chinese adhere to the Letter of the Law, while they exorcise its Spirit at their earliest convenience. And if the agreement is verbal, then watch out!

The deal was this: for 300RMB – including tolls – the Shanghai driver would take me to Suzhou …

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Read the rest of “Registration of a FICE in Shanghai” or post a comment >>

“I hired a student from a local university to do my translation…and it ended up hurting my reputation.”

This was the story I heard from a business contact I met with a couple of weeks ago. He works for a large chemical manufacturer with a presence in China, and they needed their website translated into Chinese. His choice was to hire a local student from China for the job. Once he presented the translation to his Chinese business partners, they weren’t impressed — the errors actually made him and his company look less professional in their eyes.

Read the rest of’ “What does your Chinese translation say about your company? You may be surprised…” or post a comment >>

Wholly Foreign Owned Enterprises (WFOEs) or limited liability companies whose investors are purely foreign are quickly becoming the most popular method of foreign investment in China. While foreign companies once thought (and were often compelled by laws) that a local partner was necessary to operate business in China, this is increasingly no longer the case in a wide range of industries.

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Building a talent pipeline is not easy in China and you will need all the help you can get.

Those who get to know you or to know about you through a third party grant you a higher level of confidence, credibility and loyalty. According to Dr. Robert Cialdini in his amazing book; Influence: The Psychology of Persuasion, this is social proof in action.

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In terms of human resources, the current debate is focused on the continued need for multinational corporations in China to increase hiring of local staff, particularly for operations management, while decreasing or completely removing expatriate staff. Reasons for this shift away from expatriate staff include the high cost of salary and benefit packages, questionable value (in terms of productivity and ability to drive the business), high failure rates and most recently, the large readily available talent pool of expatriates already based in China (“halfpats”).

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While massive amounts of money is being spent on marketing in the run-up to the Olympics to capture China 250 million strong emerging middle class, unfortunately most marketing campaigns are failing to deliver the results that the sponsors like Coca-Cola or Adidas were hoping for. My latest piece looks at the effectiveness of Olympics sponsorship and …

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J.P. Morgan’s recent decision to hire Elaine La Roche as its China vice-chairman may have not been a difficult one, given her qualifications as a former chief executive of China International Capital Corporation.

Leading the large, successful, foreign-owned investment banking business left no shadow of a doubt on her capabilities, with many public decisions and achievements made through her run.

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