For the last few years, one of the main themes of this blog has been how China has and will continue to increase its enforcement of its commercial laws, particularly as they apply to foreigners. We have written about the increase in crackdowns on those in China without the proper visa, about closing of unregistered businesses, the need to comply with the Labor Contract Law, and a stepping up of environmental enforcement. I’d like to take some of…

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According to the Ministry of Commerce of the People’s Republic of China, through 2008, nearly 640,000 foreign companies had set up their offices in China, with a total investment surpassing $810 billion. The introduction of large amounts of foreign capital has quickened the process of industrial modernization in China. The establishment of large numbers of jointly ventured and exclusively foreign-funded enterprises has brought in an unprecedented amount of capital…

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By Desmond Wang

After your first study visit to China, you may realize that doing business in China requires a local presence of your firm to facilitate business communications, or you may wish to further assess a better understanding of the size and potential of the China market before investing committed resources.

The next step is to consider setting a representative office, which is the fastest and the most economical way to competitively position your firm’s presence in China. But first of all, you need to understand if a representative office’s structure is the most appropriate for your firm’s China’s market entry strategy.

A representative office’s primary function is to conduct China market research, and to coordinate parent firm’s activities in China. This includes liaison with local contacts, contract negotiations, warranty and after sales service, lastly import, export and distribution services. Read the rest of “Tips to Set Up a Representative Office in China” or post a comment

By David Dayton

Here’s what I’ve been telling people about starting a business in China. First, you have to really understand what China means for you. China is not competitive in commodities. China is not competitive in small qtty’s. China is not a billion people just waiting for (enter-your-brand-here) because it’s a poor country that only wants something (other than money) from the West. While there are certainly culturally specific rules about working (successfully) here, the laws of business, in particular the rules of due diligence, still apply in China.

To be honest, China is probably a waste of time/money for many small companies when costs, mistakes and shipping are figured in. Really. Unless you know what you’re doing here, China will kill your bottom line and production quality. Read the rest of “Finding Work in China, Part II” or post a comment

Strategic vision, long-term plans are the foundation of a new business formula in the Netherlands. As a result of the limited budget available to starters, financiers will closely examine both the entrepreneur and the plan. The “Ltd in formation” is exemplary of such a start. It gives one the chance to prepare before starting the real work.

The situation is quite the reverse for many Chinese.

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