China Expert

By Steven Chow

(3) price or remuneration
Factor in the rapid appreciation of RMB(Chinese Yuan) against USD and other main foreign currencies when you are negotiating the price and contract. The currency exchange rate should be based on the currency exchange rate chart provided by Bank of China(BOC).  I am going to write an article on how to negotiate a better price with suppliers recently, please keep checking out.

(4) time limit, place and method of performance
Give a specific time limit, loading port(bad example: China port, the shipping price from Dalian in the north and Guangzhou in the south to a Japanese port are significantly different), destination of delivery on the contract.  Indicate whether partial shipment is allowed or permitted.
Read the rest of “How to negotiate a purchase contract with Chinese supplier properly? Part 2″ or post a comment

By Ron Cune
 
China is much bigger than Europe. Most people are well aware of that. Also, the country is not around the corner, this as well is common knowledge. Although we have quite some general knowledge about China, a lot of important business-related knowledge is not known. For instance the banking sector is still highly regulated, foreign currency exchange from RMB to any other currency is not so easy and business licenses are determined by business scope.
 
Realize there is a strong preference policy to relocate certain industries to certain regions. If these policies concern your industry, it will have a big impact on future market developments.
 
Information about cultural differences between the West and China is relatively easy accessible. But culture is only a part of doing business. Laws, Read the rest of “Be prepared to improvise” or post a comment

By Paul Denlinger

The consulting industry in China is flourishing. After all, it is the largest potential single market in the world, and everyone is flocking to it. New companies need information and advice about how to tackle the unique challenges of this market. For any MBA who is fluent in Chinese, or who has grown up in China, and is familiar with the tools of the trade, such as financial modeling, business negotiations and company valuations, China represents an “iron rice bowl” which will make their careers for years to come.

Or is it? My experience is that there are errors which are repeated over and over again. It gets like being condemned to watch a single Broadway show, over and over again, where the only things which change are the sets and the actors; the lines are the same.

I have covered one of the major fallacies in a previous posting, Getting Past the China Market Hype, which covered their initial reasons for entering China. This posting will cover some of the reasons for failing post-entry. Read the rest of “Why most US Entries Fail in China” or post a comment

By Steven Chow

I was approached frequently by buyers ripped off by Chinese suppliers. Oftentimes when I ask them to send me the purchase contract they signed with the suppliers, some of them will send me proforma invoice (PI), and some will say, no I don’t have a contract or PI, I keep the receipt that I sending them money or do you want to see the emails and/or instant messenger conversation record?

Practically, PI is deemed as a contract, but PI is too simple to protect your rights, you need to write down the following terms and conditions on a paperwork – Contract. As per Contract law of People’s Republic of China, a contract shall contain the following clauses: Read the rest of “How to negotiate a purchase contract with Chinese supplier properly? Part 1″ or post a comment

By Biao Wang 

1. Take time to build a sound relationship with your Chinese Counterparts. Absolute trust must be established, since the Chinese have limited faith in the legal/court system. It takes time to develop trust. Plan on this stage of the process taking at least six months of continuous dialogue. Establish the right business structure for your relationship in China.

2. Establish the right management structure for your relationship in China. The road to China is littered with companies that have tried to go at it alone and failed. There are a number of ways to do it including turn-key operations, using agents in China, using several different types of joint ventures and owning your own factory. As you proceed through this list, the savings increase, but so do the risks. Read the rest of “Rules for using Manufacturing Services in China” or post a comment