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Success tips when doing business in China

    doing business in China
  1. When hiring Chinese locals, pay close attention to their transcripts as false degree certificates are common in China;
  2. All products and services should be patented in China. Leakage of intellectual property and the potential for joint venture partners to set up in competition against a foreign firm is common;
  3. Small business and family-owned business are very common in Chinese jurisdictions. The head of these types of companies are often involved in all decisions so it is beneficial to involve the head of the company in business dealings. It is also an act of respect to acknowledge and include the elder, senior members, of the company;
  4. Saving face is of immense importance to Chinese businessmen. Any negative remarks or comments should always be made in private and entrepreneurs should take extra care to avoid correcting or admonishing a business partner in a way that might cause them a loss of face. Fee negotiation can be a hotspot for potential face loss and attention should be given to ensure that the Chinese business partner is not offended;
  5. Physical contact is rare when doing business in China. Common practices in the US and Europe such as a firm handshake, a pat on the back or putting your hand on someone’s shoulder should be avoided;
  6. The exchange of business cards is an important aspect of Chinese business culture and doing business in China. A business card should be given to everyone attending the meeting. When handing a business card to someone it should be presented with both hands with the front of the card facing the recipient. When receiving a business card, taking time to look and comment about the card shows respect. It is advisable to have one side of your business card in the Chinese language if doing business in China is expected to be a frequent occurrence;
  7. As not all local China companies are well-versed with international trade, we encourage our Clients to consistently use and sign contracts of service during China company setup;
  8. Entertainment is an important part of doing business in China. It is common for new partner alliances or new business wins to be celebrated over a traditional Chinese banquet lunch, or dinner. Traditional Chinese banquets will usually be an eight course meal and guests will be seated on a round the table;
  9. A smile is like a handshake for the Chinese. In order to avoid getting off on the wrong foot, it is advisable to not look to serious when dealing with your suppliers and Clients in China;
  10. Make friends with your China Clients and suppliers. Unlike westerners, the Chinese like to make small talk and exchange pleasantries before conducting business;
  11. To optimize the success of your new business venture in the China, Healy Consultants recommends your Firm i) complete a feasibility study ii) prepare a detailed business plan iii) communicate with the China Chamber of Commerce iv) speak to your local China embassy and v) communicate with Healy Consultants Clients who successfully launched their business in China;
  12. Foreign companies interested in China company setup should be aware i) China statistics and market data are not always precise ii) transactions tend to take longer than expected iii) more frequent and longer market visits are required, at least initially iv) complex business procedures are common;
  13. Your joint venture partner or China shareholder must not merely be a nominee for the sake of meeting the rules of China company setup by a foreigner. You should choose a partner that actually brings a lot to the table, including local knowledge necessary for your business to succeed in China;
  14. When undertaking China business registration, it’s important to find out which China registrations and licenses apply to your firm. This can be a complex area; as local, state, and national governments handle registration and licensing for various aspects of your business;
  15. All business deal with government agencies, such as the China Company register, on a regular basis. This is where foreigners undertaking China business formation should exercise restraint and be patient as much as possible as government authorities would always have the final say in any matter.

Interesting facts about China

  1. China averages 274 protests per day, although the vast majority happens in rural areas and are quickly suppressed and censored;
  2. Chinese GDP could overtake the US as soon as the early 2020s due to its emerging market economy, which will account for about 70% of the global GDP growth;
  3. China has surpassed the UK and Japan, becoming the third largest export market;
  4. Both the world’s tallest man (8ft 1 in) and woman (7ft 8 in) are Chinese;
  5. China boasts having the largest population in the world of 1.344 billion people. China makes up approximately one fifth of the world’s population;
  6. 68% of all the pirated goods in the world come from China;
  7. Flights from Hong Kong to mainland China are classified as international flights;
  8. Websites such as Amnesty international, YouTube, Facebook, BBC news, and Dalailama.com cannot be accessed in China;
  9. According to the Hurun Rich list, China boasts more than 300 billionaires in their country (as in September 2014);
  10. Fortune cookies are not a traditional Chinese custom. They were invented in 1920 by a worker in the Key Heong Noodle Factory in San Francisco.

Contact us

For additional information on our company registration services in China, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi