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September 27th, 2007 by Business China Editor
1.3 and 5,000
By Ernie Tadla
The population of the U.S. is 300 million.
China’s population is 1.3 billion.
Stop for a moment and consider the respective jobs and responsibilities of U.S. President George W. Bush and Chinese President Hu Jintao. The principles of governance may be similar, but the numbers are staggering.
The burden of governing 1.3 billion people compared to 300 million is lost on most Westerners who are quick to criticize how Chinese leaders govern, yes, control the masses, while nurturing the hottest and largest economy in the history of the world. Read the rest of “China Lesson Two: Communists Get Things Done, Too” or post a comment
September 26th, 2007 by Business China Editor
By Dacare Executive Search
What are the risks attached to investing from abroad into China? What are the best ways to minimize these risks?
Risks are high in doing business in China because anything can happen, including political revolution, financial crisis, labour uproar, etc. However, the general return is high too - China is one of the fastest-growing markets with an annual growth rate approaching 10% in the past 10 consecutive quarters.
The key to success in China is to fully realise the risks and have a flexible action plan to minimize them. The following are, in my opinion, the most critical risks that may have a direct impact on foreign investment in China. Read the rest of “Investing China: Risks, opportunities, incentives” or post a comment
September 25th, 2007 by Business China Editor
By Alan Adcock
Intellectual property (IP) forms an important part of the franchise relationship. Acknowledgement of this by both the francisor and the franchisee is a key issue for franchisors that wish to enter the newly opened Chinese market as well as the long established Hong Kong market. Most people are aware of the fact that China and Hong Kong are separate legal entities, but may not be so clear on the fact that their IP needs to be registered separately in both. Differences in enforcement also exist. With the recent liberalization of China’s franchise system, foreign franchisors are now considering the People’s Republic in their business plans and adding Hong Kong to that list at the same time.
Franchise overview in China
On 1 February 2005, the PRC Ministry of Commerce’s (MOFCOM) Administrative Measures on Commercial Franchising (“New Measures”) took effect replacing earlier interim regulations and now allowing foreign invested companies to enter into franchise relationships in China. Read the rest of “Intellectual Property in Franchising Relationships - the view from China and Hong Kong” or post a comment
September 24th, 2007 by Business China Editor
By George Martin
Like Tom Cruise in Top Gun, American companies often feel “the need for speed.” In a business world where Internet time has become the norm, the watchword is: get the deal done.
The race to close new ventures over seas doesn’t always leave room for effective due diligence. After all, the theory goes, we do these kinds of deals every day. But U.S. businesses accustomed to cookie-cutter deals in other jurisdictions - or even in sophisticated business markets like Europe - often underestimate the perils of the murky, high risk/high reward marketplace in China. This is a region where it pays to do your homework.
The Appeal of the Market
It’s easy to understand the lure of the Chinese market. Read the rest of “Due Diligence in China: Revealing the Dark Side of the Moon” or post a comment
September 21st, 2007 by Business China Editor
By Frank Claeys
In his time Sun Tzu was a general of the Emperor of China. One day he suggested to the Emperor to make an army of women. He asked the Emperor for a thousand of his women. The Emperor, a bit hesitant, gave them to him.
Sun Tzu started his first training exercise. He ordered the women to stand in rows and march. The women started giggling and laughing and disobeyed his order. Sun Tzu thought; they are not obeying my order, this could be a breach of communication. Maybe they did not understand the order or it was unclear. I have to explain my order again. He explained the drill again and repeated the order to march. The women giggled again and refused to get in line. Sun Tzu gave the order to kill 500 of the women. The Emperor was not willing to allow this, but Sun Tzu stated that he had given him authority to complete this task and that it was therefore his responsibility. Sun Tzu created his army with the remaining 500 women. Read the rest of “The communication skills of Sun Tzu” or post a comment
