Really Useful Information
for Selling to China
A bi-weekly service fromChina will not see a net import of coal this year and the country's import and export of coal will most likely be balanced by the end of the year.
Gong Yunhua, a coal industry analyst with Guojin Securities, said the government has encouraged imports and discouraged exports, resulting in a net import early in 2007, but import and export will balance out over the year.
As part of the government's policy to discourage exports, China lowered the coal export tax rebate from 13% to 11% in January of 2004, and the rate was reduced again to 8% in May of 2005. Last September, the country canceled the rebate.
According to recent statistics, China imported 19.22 million tones of coal during the first four months this year, surging 50.5% year-on-year, while coal exports were 15.87 million tones during the same period, resulting in a net import of 3.35 million tones.
Pu Hongjiu, vice president of the China National Coal Association, told Interfax last May that China will not a see net import at the end of 2007 since coal exports will not decline due to relatively high international coal prices.
Many factors contributed to the rise in imports in the first few months of this year, such as the fact that in November 2006, China lowered its coal import tariffs from between 3% and 6% to between 0 and 1%, while imposing a 5% tax on the export of coking coal.
Also, China canceled its coal import tariffs from the beginning of this month.
With these changes in import and export conditions, together with strong domestic demand, China saw net import of coal this January.
Guanxi literally means "relationships", stands for any type of relationship. In the Chinese business world, however, it is also understood as the network of relationships among various parties that cooperate together and support one another. The Chinese businessmen mentality is very much one of "You scratch my back, I’ll scratch yours." In essence, this boils down to exchanging favors, which are expected to be done regularly and voluntarily. Therefore, it is an important concept to understand if one is to function effectively in Chinese society.
How relationship is established
First of all, it does not have to be based on money. Treating someone with decency while others treat him/her unfairly could result in a good relationship. Second, it starts with and builds on the trustworthiness of the individual or the company. If a company promised certain things and delivered as promised, the company is showing trustworthiness and the Chinese would be more inclined to deal with them again. Third, being dependable and reliable definitely strengthens the relationship. It is like being friends, and friends can count on each other in good and tough times. A good example is related to the 1989 political instability in China. Companies that stayed found their relationship with the Chinese strengthened as they were viewed by the Chinese as friends who did not abandon the Chinese when they needed friends. Fourth, frequent contacts with each other foster understanding and emotional bonds and the Chinese often feel obligated to do business with their friends first.
"Guanxi" or relationship with high rank officials are still important for doing business in China, though declining to some extent. Political and administrative interference in business have declined. More and more companies have found themselves on their own surviving without government subsidiaries. If they are not getting any help from the government they are more reluctant to be influenced by government officials. So government "Guanxi" may have less influence with these companies.
Since "Guanxi" and relationship could function as an information network, companies with wide "Guanxi" and relationship networks often have much higher performance than companies with little or no relationship with the Chinese.
Qingdao City has five county-level cities and seven districts, covering 10,654 square kilometers with a population of 7.06 million.
Situated on the western coast of Jiaozhou Bay, Qingdao Development Area is endowed with an advantageous location, with the national-level Qingdao Development Area, Qingdao Free Trade Zone, Qingdao Hi-tech Industrial Experiment Area and the provincial-level Xuejiadao Holiday Resort scattered around. QDA has convenient access to Qingdao City proper both from land and on the sea. It has a oil dock, an ore dock, a bulk cargo dock and two container docks, which constitute Qianwan Port. As a key development and opening spot of Qingdao, QDA boasts eye-catching scenery, pleasant climate and tremendous development potentials.
Qingdao Free Trade Zone, Qingdao Hi-tech Industrial Experiment Area and Xuejiadao Holiday Resort have been established within the Area.
Situated on the western coast of Jiaozhou Bay and facing Qingdao City proper across the sea, QDA is only 2.26 nautical miles from Qingdao at the narrowest points. In 1992, QDA and Huangdao District of Qingdao combined into one administrative body, administering an area of 220 square kilometers and 300,000 people. Backed by mountains and bordering on the sea, it has become a new hot spot for investment economic development.
The QDA Administrative Committee is an extension of Qingdao Municipal Government, responsible for the administrative and investment affairs within the Area. The committee has autonomy to authorize provincial-level foreign investment projects as well as registration of industrial customs, commodity inspection, and other related activities. QDA provides round-the-clock services for domestics and foreign investors.
With regard to the strategic planning, QDA is divided into 6 major sectors:
(1) Petrochemical industrial area
(2) International trade, storage and processing industrial area
(3) Port area industrial area
(4) High-efficient agricultural area
(5) Administration and commerce area
(6) Comprehensive tourism area
CRI January 31, 2007 - According to the latest statistics from the Beijing Tourism Administration, travelers arriving China spent US$1,033, or about 8,000 yuan, per person last year in Beijing. In addition, the income of foreign exchange from tourism surpassed US$4 billion for the first time.
According to the Beijing Evening News report, Ms. Li, An English tour guide with considerable experience, revealed that silk, pearl and cloisonne are the three favorite goods purchased by foreigners who come to Beijing.
In previous years, tourists used to be taken to traditional arts and crafts stores, but they now ask to be taken to the Silk Market in the central business district or Hongqiao Market near the Temple of Heaven.
Many foreign travel agencies arrange tours to the Silk and Hongqiao Markets as part of their packages. The tour guide revealed they are becoming better known globally and the reports of reasonable prices and quality goods there help boost their profiles. Many foreign travelers have become more interested in shopping at these traditional places for locals and always have a lot of fun there.
In addition, other favorite clothing markets for Beijingers are also becoming popular with foreigners, including the Yaxiu Market near the Workers' Stadium and Jiayi Market opposite the Kunlun Hotel.
1. Sulphur
Inquiry from Shanghai City （China）：we are in the market of high purity sulphur, lump or granular. We need this material to produce sulphuric acid. At present our monthly consuming quantity is about 10,000Mt. If you can supply this material, pls do not hesitate to contact with me.
Contact Person: Josephine (Ms.)
Telephone:86-21-32111157
E-mail: josepine@lbchem.com
2. Second-hand Truck
Inquiry From Hefei City （China）：I have a small transport company and interested in buying second hand truck. Now I am wondering if you have the ability to export the trucks from Germany to China for there are many limits of importing second hand autos in China.
Contact Person: JianYun Xu
Telephone: 86-0551-5571387
Email: info@cerestrade.com
3. Chemical products
Inquiry from Shanghai City(China)：We are a leading chemical trading company in China with the head office in Shanghai engaged in import and export of organic and inorganic chemicals. If you have any profitable chemical products for sale, we are interested in representing you in China and use our sales channel to help you to open up and develop Chinese market and realize mutual benefit of course.
Contact Person: Sunny Yuan
Telephone: 86-21-51627085
E-mail: sell@yuhuachemical.com
There is a lot of up-to-date demanding info at the channel "Demands" of China Import Network http://www.import.net.cn/e/demand/list__1.html. Take a look and grab the opportunity to sell your products.
Chief Editor: Sherry Yang Associate Editor: Lark Huang, Jimmy Jiang
Graphic Designer: Sam Zhou
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