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Essential Advice for Doing Business in China

 

Before you do any business in China....

Look Before You Leap!

By the U.S. Commercial Service, Beijing
and Rosemary Gallant U.S. Commercial Service


Since adopting market reforms in 1978, China has been among the world's fastest growing economies. This has led to dramatic developments in America's commercial relationship with China.

In 1986, total trade between the United States and China was $7.9 billion. By 2003, this total had reached $170 billion, making China the United States' third largest trading partner. Financing for Small Business

Despite a significant trade deficit, U.S. exports to China grew by 66 percent over the past three years as compared to 10 percent decline for the rest of the world. There are significant opportunities for U.S. businesses in China.
 

Doing Business In China
A key list of "do's and don'ts" of doing business in China draws from the experience of American companies with successful sales in China, as well as information from the U.S. Department of Commerce. Volvo New York

DIVERSE MARKETS REQUIRE CAREFUL RESEARCH

China is a very diverse market with varying levels of development and regional industrial strengths. From Harbin in China's Northeast, to subtropical Haikou on Hainan Island in the South China Sea, China encompasses diverse topographies, climates, cultures, and peoples. Each region therefore has its own consumer preferences and business needs. Some industries are spread all over the country, some are clustered, and others are heavily concentrated in one area. For example, of the roughly 3,000 personal care products factories in China, 2,700 are located in the southern province of Guangdong.

Basic doing business in China market research is available from the U.S. Department of Commerce through www.export.gov, as well as a host of private consulting firms, research companies, and trade groups. The commercial sections of the U.S. embassy and consulates in China can also work with American exporters to provide research on specific topics to understand current market conditions, pricing, and future trends.

Lists of local "Doing Business In China" businesses service providers, consultants, and law firms are available through the commercial sections of the U.S. embassy and consulates. The U.S. Department of Commerce maintains offices in Beijing, Chengdu, Guangzhou, Shanghai, Shenyang, and Hong Kong. Similarly, many companies need multiple representatives to cover China.

Doing Business In China Information

SPEAK THE SAME LANGUAGE

Despite China's commitment to, and success in, developing human resources with good English-language skills, companies that are serious about doing business in China should supply company information in Chinese and be prepared to initiate contact in Chinese. Having Chinese-language material prepared and a Chinese speaker or interpreter available makes a great first impression and demonstrates that a company is serious about doing business in China.

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