No threat of foreign monopoly in any industryTOP
Official statistics show that Kodak has taken half of China's market share in photo sensitive materials; Fujifilm, 25 per cent; Microsoft, 95 per cent; and Cisco, two thirds in their respective fields. Official figures state that foreign mergers and acquisitions merely accounted for 5% of all forms of foreign direct investment in China prior to 2004.The figure has sharply risen to 11% in 2004 took a huge leap upward to close to 20% by 2005. China had approved the establishment of more than 610,000 overseas-funded companies by the end of July, with actual use of overseas investment totaling US$720 billion.
Although foreign investors do have a large market share in certain industries, it does not necessarily mean monopolies.
Top Chinese statistician Li Deshui has appealed for special attention to emerging monopolies, as multinational companies begin purchasing Chinese counterparts. He said that some foreign corporations are restructuring their investment in China in an effort to play a dominant role in a certain sector.
China is still most attractive country to foreign director (FDI), but policy makers have made it clear that foreign investors have to offer more than money in order to continue to make huge profit in China. China seems to be powerful enough to afford some potential loss of foreign investment and intend to lessen its dependence on foreign investment. Perhaps it’s time for multinationals to study the drafts of the anti-monopoly law and think hard to find ways of tackle such a tough predicament.
The country does not face an imminent risk of monopoly by foreign companies in any industry, according to the China Foreign Investment Report 2007 released by the Ministry of Commerce.
Foreign investors fear that the monopoly law might serve as double-edged swords for those foreign owned company in China. For instance, its aim to tackle local protectionism by getting rid of administrative monopolies is likely to offer a fairer competition environment for foreign investors, however, on the negative side, foreign companies fear that it’s also a shied against them.
The government also encourages qualified commercial banks to set foot abroad by establishing branches or acquiring stakes in overseas counterparts. Supportive policies should be given to domestic enterprises to help them upgrade technologies, speed up innovations, catch up with multinationals and turn out better products.
Learn the Chinese Way of Doing ThingsTOP
China has changed enormously over the last 20 years. Its economy has been growing at 10% a year, and it's on track to be the world’s largest economy soon. Today, 80% of the world’s electronic goods are made in China. As a result, more and more western companies want to do business in China. But how easy is it for a westerner to do business there? Flexibility To survive, the Chinese have learned to be flexible. Government officials, laws and regulations are constantly changing. As foreigners doing business in China, you need to learn to adjust yourselves to the changing situations as the Chinese do.
Patience In China you must be patient. You cannot move as fast as you want. Things do not happen overnight. For instance, choosing a joint venture partner in China is like searching for a partner for a marriage. You have to choose the right person and try to minimize the likelihood of divorce. This takes time.
Guanxi (Relationships) Relationships are important everywhere, but they are especially important in China. You have to establish good relationships with the governments at both central and local levels. This is because both the central and local governments have their own powers and wishes.
Respect If you come to China with an arrogant manner, you are lost. Regardless of your ownership percentage, you should try to treat your joint venture partners as equals. In order to succeed in China, you need to understand the culture and history that have brought China to where it is today. The Chinese are proud of their history and you in turn have to respect it. However, that does not mean that you have to change yourselves. Never try to compare - better or worse - but try to recognize differences and leave it at that.
It can also be useful to find a reliable Chinese ally to work with you. He or she will be able to help with language or cultural problems and will also be able to understand Chinese body language. Remember too that a visit by a westerner is often seen as a great honor by Chinese companies.
All these tricks of the trade can help you to play the game and do business successfully in China. Be prepared, and be patient if you want to be a winner in China.
Investment Environment of ChongQingTOP
Chongqing is situated at the upper reaches of the Yangtze and at the joint of central China and West China. It is rich in biological resources, mineral resources, water resources and the unique Three Gorges tourist resources. The world famous construction of the Three Gorges dam and developable emigration of the reservoir area and the investment demand and consumption need of the 30 million people who are marching to a well-off living standard will provide a vast market potential for the future development of Chongqing. Chongqing is the economic center, transportation hub and inland river port at the upper reaches of the Yangtze and in the southwest of China. Economic strength is further strengthened, characteristics of big industry, big agriculture, big circulation and big traffic are more obvious. A number of mainstay industries, prominent industries and key products have emerged. Rural economy has gained all-round development, output of some farm produce and by products takes a leading position in our country. A batch of regional markets is set up to face the whole country. Infrastructure is beginning to take shape. Sci-tech and education has a solid foundation.
Any foreign investment enterprise can open foreign currency accounts in any banks or financial institutions in Chongqing Area which have the right in foreign currency business. If there .is special needs, one can open foreign currency accounts at banks (including foreign banks) in any other cities which have the right in foreign currency business. Any foreign needs, if investment enterprise can open one or two balance accounts according to one's special needs, more than two balance accounts can be opened.
There is no borrowing limit for foreign investment enterprises to get loans from financial institutions, enterprises and individuals abroad, or from foreign financial institutions in China. The foreign currency borrowed can be changed into Renminbi for the purchase of raw materials and equipment in China. Foreign currency can be bought by Renminbi for the payment of loans.
The profit in foreign currency derived legally from one's investment can be freely remitted abroad. With agreement from the board of directors and duty paid proof, one’s profit in Renminbi can be changed into foreign currency in the bank appointed by the foreign exchange control administration the foreign currency can be remitted abroad or used as capital investment in China.
With an investment agreement a foreign investment enterprise can open a three-month temporary foreign currency account for its investment credit, the account can be extended if there is special needs.
The Teachers' DayTOP
In China, teachers are held in high esteem. September 10th is the Teachers' Day of China. This day is in honor of all those involved in the teaching profession.
September 28th is the birthday of the world famous teacher Confucius---Kongzi who is the great philosopher and he is also a great teacher. He had thousands of disciples (students). In the ancient times, Kongzi's birthday was regarded as a Teachers' Day.
Now, September 10th is the Teachers' Day of China. In the year of 1984, Wang Zishen, former president of Beijing Normal University, suggested to establish a festival day for the Chinese teachers. On January 21st, 1985, September 10th was fixed as the Teachers' Day of China.
Teachers Day expresses respects to the labors and contributions of teachers to the Chinese society. The goal of Teachers Day is to form a social climate in which teachers are respected and knowledge is valued. The date of Teachers Day is set at the beginning of the school year in order to arouse teachers and students enthusiasm for their work, and give a good start to teaching and learning. On teachers Day, students usually send greeting cards with good wishes to their teachers to show their respect. In Taiwan, Teachers Day is celebrated on September 28 annually. Choose this day is to celebrate the birth of Confucius for his great contribution to Chinese culture.
A poem expresses the whole teaching life of a teacher:
Spring the silkworm to the dead silk side, the candle becomes the ash tear beginning does.
春蚕到死丝方尽， 蜡炬成灰泪始干。(Pinyin: Chun can dao si si fang jin, la ju cheng hui lei shi gan. )
China Import Network will initiate the culture importTOP
Nowadays, import product doesn’t only include energy-saving & environment protection product, advanced technology equipment and luxury goods, but also different cultures. As a matter of fact, importing culture is really a new field. We know that any economic activity is always closely linked with its corresponding culture. Therefore, the import business is not only a demand for consumer goods but also a process of culture fusion.
As the exclusive portal for import in China, China Import Network has devoted itself to importing overseas products as well as western cultures.
A Canadian Hip-hop singer is eager to make his music popular in China. So he is searching a brokerage website to promote his music. At last, JESSE chooses China Import Network to operate his music marketing in China.
Recently, China Import Network has worked out an all-directional plan for JESSE’s music into China which indicates that China Import Network has initiated its culture import business.
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