Success and failure of doing business in China

Success and failure of doing business in China

1. Establishment and implementation of enterprise's development strategy. In China, successful MNCs and foreign-funded enterprise will definitely implement long-term development strategy, adopting a long-term outlook for their business, unlike other unsuccessful companies which do not look far and only concentrate on short-term gains. Besides adopting a development strategy that is of long time horizon, the strategy will need to be a flexible one as market conditions are constantly changing due to the presence of globalization. The enterprise need to be flexible as to react immediately to any changes without affecting its business operations.

3 ways to Export goods to China

3 ways to Export goods to China

Mainly there are 3 ways whereby one can export his/her goods in China:

1. Distribute your goods directly
2. Establish a joint venture
3. Find a qualified agent or distributor with a vast sales network

Before exporting your goods into China or choosing a Chinese partner, it is advised for you to conduct thorough market research and due diligence. Companies should be mindful of possible problems in export rights, regulations and intellectual property rights protection. If the company decides to distribute the goods directly, then it will have to be aware of the distribution rights and understand the licensing process in China.

Considerations by employers before and after employee termination when doing business in China

Considerations by employers before and after employee termination when doing business in China

1. Grounds for Termination:

a. Immediate Termination

An employer may terminate an employee without requirement for notice in the following situations:

During the probation period, if the employee is determined to be unfit for the position;
The employee materially breaches the rules and regulations provided by the employer;
The employee is in serious dereliction of duty, graft or corruption causing substantial damage to the employer’s interests;
The employee has established an employment relationship with another employer and that relationship affects the completion of his tasks and he refuses to appropriately remedy the situation after notification from the employer;

Doing business in China import export from China List of common shipping Terms

Doing business in China List of common shipping Terms

Pro-forma invoice (PFI) - A quote from a seller to a buyer. Shows you what the invoice will look like and sets out the seller's terms. Often used to obtain financing for large quantity orders.

Purchase order (PO) - Document to purchase goods or services from a supplier. Contains the name and description of the goods you are buying, quantity, price, payment, and delivery terms.

Commercial invoice (CI) - Bill for goods delivered or about to be delivered. Specifies exactly the product, quantity, value, and a list of any special charges such as handling, packing, one-time set-up fees, etc.