how do business in china

Topics: China, People's Republic of China, Economy of the People's Republic of China Pages: 6 (1049 words) Published: June 11, 2014
Qiu Guixi (David) (pass: SIS and pseudo : SIS)

My view on how to do business in china (2 000 words) for the paper

For assignement ( 500) BMW or KFC


34 local governement
Autonomous regions can use their own language
Hong kong can not decide about military issue and diplomic relation with foreign countries

Ca a pris du temps pour la chine d’entrée dans le WTO
HK keep UK system and macao keep portuguese system
Example, in mainland of chine there are not casino

Before 1978 china had a plan economy
Special economic zones (SEZs) began in 1979

3 changes in these SEZ (small village become modern cities, from agricultural economies to industrial ones, from poopr societies to relatively rich ones)

Experiences from these SEZ (

In 1984 extend to 14 coastal cities
Applying the successful experience from SEZ, learning from the four tiger, using advantage of coastal cities, deepening la transformation de l’économie chinoise,

Achievement (there are 5 achievement)
Attracting tremendous FDI, promoting socialist market system

Third steps : opening the central and western regions to the world in 2000

Le but: réduire l’écart entre les region de l’est et de l’ouest Atteindre le common prosperity

Shanghai Free Trade Zone
The vehicles for doing business in china

Direct sales to chinese end-users,
trade with commission agents,
Representative offices,
Sino-foreign joint ventures
Sino-foreign co-operative entreprise
Wholly foreign-owned entrerprise (WFOE)
Compensation trade

Representative offices

Establishing rep.offices – RO is useful and inexpensive vehicle RO – permissible activities
1) Conducting market research
2) Facilitation or monitoring purchasing activities
3) Marketing and sales administration for sales conducted between China and its parent company 4) Administration for group activities elsewhere in Ch


Not allowed for invoicing
Not allowed to sign employment contract with local people

Some websites

Chinese government’s official web portal

shanghai municipality official website

10 day after the last cours

2e séance

How to start your business in china?

Laws governing your business
What areas can you invest in?
China’s strategic industries
Formation procedures of your business
Government authorities in charge of your business

Constitution, laws and regulations

Constitution of P.R. China (Art. 18)
Company Law
Sino-foreign Joint Ventures Law
Sino-foreign Co-operative Enterprise Law (before, it’s majority) Wholly Foreign-owned Enterprises Law (now it’s the majoriry) Catalogue for the guidance of foreign investment industries (2010 version)

Article 18 of Constitution

Cf Article 18

Catalogue for the guidance of foreign investment industries

Focusing on advanced manufacturing, high-tech, modern services, new energy and energy-saving sector. Encouraged industries
Restricted industries
Prohibited industries (e.g. gambling and eroticism)
China to promote seven new strategic industries
1. Energy-saving and environmental protection
2. New-generation information technology
3. Biotechnology
4. High-end equipment manufacturing
5. Alternative energy
6. Advanced materials
7. Alternative-fuel cars
8. (adopted ….)

Some figures

Up to Sep.2010 chine has proved 683 000 FFEs with the total FDI value of 1060 b USdollar. FDI of 94b USdollar in china in 2009 next to US. According to the 2009 report issued by UNCTAD, transnational investment went down by 50% in Brazil, 19% in india, 93% in UK, 57% US, 53% japan and only 2,6% in China. China records No.1 in absorbing….


Pre-examination and prior approval are compulsory for foreign investment in China before the business license is issued Preferential policy is still being offered for foreign investment

Guide to “doing business” entities

Foreign companies may...
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