Doing business in China

Tamara Jovii 101040/09

urica Pei 101157/09

The People`s Republic of China

An ancient civilization located in East Asia

Chinese inventions: paper, credit banking and paper money
The capital of China is Beijing, the largest city is Shanghai
The official currency is the Renmimbi (Yuan), 1 10
GDP $8.767 trillion (the third largest in the world)
GDP per capita $3.566 (lower middle category)
Member of the World Trade Organization

Why do business in China?

Starting Business
There are three options to take when make investments in China:
Wholly foreign-owned enterprise
Chinese-foreign cooperative enterprise
Sino-foreign joint venture

The Wholly Foreign Owned Enterprise (WFOE)

Limited liability company
Defining business scope (range of business)
Registered capital (amount required to run a business)
Taxes (from 15-30%)
Getting credit

Termination of business inability to operate

Business Culture
Very much different from Western business practice
Business relationship unavoidable becomes a social relationship
Seniority is very important
Exchanging business cards
It is helpful to know some Mandarin
The Chinese generally like to give small and inexpensive gifts,
such as:books, spirits, accessories and home decorative items.
Avoid giving the following things as gifts:
Chrysanthemum (it is related to death)
Money (may be considered straight bribery)
Umbrella an fan (they all mean separation)
Avoid black and white wrapping paper. Wrap gifts in colors
such as: red, yellow or gold, which are regarded as lucky.
Do not write names in red on card or note
(it signifies that these people are dead)

If you have decided to establish a company

keep your business on high alert at all times while
working in China and everything should be okay.