China is the only fastest major growing nation with an average annual GDP growth rate of at least 10%. In 2007, China was ranked 1st by current account balance of USD 262.2 billion dollars (9% of GDP).
China’s rapid development of its economy is no threat to any other country but an important opportunity for other countries to come into China and expand and expose their market internationally. China’s globalisation is becoming “the place to be” for exposure to multinational companies and organizations.
The Chinese business culture is very unique. Chinese like to talk about “guanxi” (relationships), and “mian-zi” (to give face).
• “Guanxi” means relationship, any form of relationship. Once “guanxi” is established, it means constant cooperation and support is exchanged with one another. Basically, it goes as far as exchanging favours on a regular basis. The Chinese believe that by knowing how to make the right “guanxi”, it minimizes the risks, frustrations and disappointments of doing business in China.
• “Mianzi” means to give face. If you “give face” to someone, you respect that one person, and you will not do anything to embarrass them. If you don’t “give face” it means you don’t respect them, hence, they should no longer be in any association with you. It can be as absurd as not accepting a cigarette, meaning you don’t “give face” and thus you don’t respect them.
Developing Relationships (Guanxi)
Once you have developed a mutual relationship and cooperation with a Chinese businessman, it literally means you will support each other. “Guanxi” and “mianzi” are very important in China, not only with networking and doing business, but also in everyday life. PRC Study can help you establish and open up your “guanxi” in China, as well as teach you the morality of “mianzi”, and various aspects about doing business in China.
Basic Understanding of Mandarin Chinese
When doing business in China, foreigners often come across the same problems over and over again. The language barriers between English and Mandarin Chinese are completely diverse. Even if you hire a translator, would it not be better if you have some understanding of the Chinese language to ensure that the translator is at least translating what you are really trying to say? Therefore, it is really recommended that those doing business in China have at least a basic understanding of the Mandarin Chinese language.
Chinese Business Protocol
As for business ethics, men or women should never wear bright suits (to the Chinese it seems very inappropriate), and must develop good “guanxi” and give a lot of “mianzi” to show trust, appreciation, honor, and cooperation.
Starting Up a Business in China
To start up a business in China takes anywhere from one month up to 1 year, depending on the type of business one wants to start. There are 13 procedures to go through till you finish setting up a business. To start up a business, you must be obtaining the following items below before you can open your business to the public:
• A notice of Pre-Approval of the Company Name
• Opening a preliminary bank account
• A registration certificate “Business License of Enterprise Legal Person” with SAIC or local equivalent,
• Approval of making the company seal from the police department
• Organisation Code Certificate issued by the Quality and Technology Supervision Bureau
• Register with the local statistics bureau
• Register for both the state and local tax with the tax bureau
• Open a formal bank account
• Apply for authorisation to print or purchase financial invoices/receipts
• Purchase uniform invoices
• File for recruitment registration with local Career Service Center
• Register with Social Welfare
By: Amit Salkar
Posts Tagged ‘Multinational Companies’
Doing Business in China
December 21st, 2009Business Management Books – A Must For Every Businessman’s Library
November 29th, 2009
Business management books are available on all topics related to it, forming a truly great body of information. There are books on every aspect, every situation, every practice, and principle related to business management. The books are also all-inclusive, ranging from small, proprietary businesses, to business management of big, multinational companies.
Mostly these books fall into the following categories, as these categories form the basic elements or aspects of business management:
Financial management: Capital or financial resources form the very basics of any business. Such books guide you about the aspects related to managing your financial resources.
Marketing management: These books show you a way to design a marketing plan that works. It is also possible to find out some hitherto unknown factors such as some mistakes or false assumptions in your marketing methods, case studies discussed in such books. You might find some interesting new ideas that will be useful for your business.
HR management: Effective and efficient use of human resources makes any business successful. Books on HR management provide information about the latest theories and practices in this field.
Strategic management: The decision-making is a multi-level process. It needs to consider various situations, processes, requirements and various changing factors such as the market, customer, competition, production and cost issues in line with overall planning and goals of the organization. Such books provide a clearer view to look at the problem, as well as make us aware of some important aspects that might be ignored otherwise.
Production management: There could be some other factors that affect the overall productivity or internal losses. You can find some useful information about such unanticipated aspects and methods to deal with such issues from these books.
Service management: Retaining and increasing the customer base is very important for the growth of any business. These books on service management provide useful information, data, and helpful and effective policies to be applied for better service management.
IT management: The latest of management science, IT management covers all the issues related to the management of IT resources. You can learn how to make the most from your IT resources, how to use it cost effectively, make profit and expand your business.
Business Intelligence: You need a lot of data related to production, financial inputs, competition, customer requirements, market trends, etc. to make business decisions. Comparative analysis and various aspects of particular business methods or practices are discussed in such books. Many successful businesspeople make use of any such books available in their decision-making.
There are also a variety of journals and periodicals that publish useful data pertaining to their respective fields. It is helpful to keep abreast of the latest market updates through such publications.
To stay ahead of the competition, it is necessary to keep yourself updated with in-depth information. Any businessperson knows the importance of acquiring such resources. It makes sense for a businessperson to stock his personal library with the latest business management books.
By: Victor Epand
