Coming from a country such as Holland, people are not used to others bragging about money or possessions. A good dose of self-confidence is considered healthy and it’s totally acceptable to talk about personal achievements as long as we avoid talking about materialistic success. Being proud of your expensive car in front of the door, talking about prices of a newly bought boat or mentioning the price of wine to your guest will more than likely bring you…

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By Steven Chow

(6) dispute settlement
a. Lawsuit or arbitration
The question for dispute settlement is lawsuit or arbitration. When I just graduated from law school and joined a big import & export company, I was asked by the general manager to review their sales contract. The first thing I noticed on the contract was that the dispute settlement clause said that both parties can choose litigation and arbitration as dispute resolution methods.

According to article 5 of Arbitration Law of People’s Republic of China, Whereas the parties concerned have reached an agreement for arbitration, the people’s court shall not accept the suit brought to the court by any one single party involved, except in case where the agreement for arbitration is invalid. Read the rest of “How to negotiate a purchase contract with Chinese supplier properly? Part 3″ or post a comment

Under the current tax system in China, there are 26 types of taxes, which, according to their nature and function, can be divided into the following 8 categories:

• Category of turnover taxes. It includes three kinds of taxes, namely, Value-Added Tax, Consumption Tax and Business Tax. The levy of these taxes are normally based on the volume of turnover or sales of the…

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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.

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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…

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