There are 3 ways that your firm can export goods to China:
1. Distribute your goods directly
2. Establish a joint venture
3. Find a qualified distributor in China
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.
Distributing your goods directly may be a complicated and time-consuming process as one may not be familiar with China’s business practices and government regulations. Application for distribution rights and establishment of own distribution channels will be difficult. Chances of failure will be higher as a result. Establishing a joint venture will thus be a better option. Establishing cooperation with a local partner can allow you to have faster access into China’s market and with the local partner’s knowledge and experiences of China’s market, your success rate will be higher and goods can be better distributed. Acquiring help from a local partner does give you many advantages in penetrating the China’s market. A side issue to note will be that joint venture usually requires large amount of capital and China’s government may have capital control towards outflow of funds should one transfer his/her funds back to his/her home country. The government will also need to assess the potential economic benefits that it can bring to China, e.g. does it create job opportunities for the local population before approving it.
For small and medium sized companies, the best way to enter the China market is through a reputable or well-known agent or distributor. These companies are located regionally and typically have large sales network. Thus they will be able to have a better understanding of the China’s market and can provide assistance in developing distribution strategies in China and the region. In this way, new products can be launched easier into the market and distribution network can be set up rapidly without any problems dealing with distribution rights and licensing.
Besides all these, the most important step that one must take before exporting his/her products into China will be have a thorough understanding China’s customs, regulations and controls towards imported goods. A sound market entry strategy is also necessary in order to penetrate the China’s market. An assessment of your goods’ strengths, weakness, opportunities and risks would allow you to promote and distribute your products better. Understanding the profitability and marketability of your products in the China’s market is thus vital before exporting your products into China.
China Business News Blog is published by Mr. Brian Su, Artisan Business Group, Inc. in Illinois USA. The blog provides up to date business news, investment leads and partnership opportunities. To inquire our China business and investment advisory services, please call (217) 303-5393.
Friday, September 28, 2007
Thursday, September 27, 2007
Is Your Company "China Smart?"
Artisan Business Group offers a series of Doing Business in China workshops to address what your business should know to be successful in China.
Topics
* Successful Sales Strategies
* Commercial Trends and Emerging Issues of immediate impact to your business
* Dynamic Emerging Markets: Why your company should be looking beyond Beijing, Shanghai and Guangzhou
* Strategic and Tactical considerations for intellectual property protection and plotting market entry/expansion
* Finding, Evaluating and Motivating your Chinese Partner
* Risk Management, Currency Issues and Getting Paid
* Critical Logistics and Supply Chain Consideration
Contact us today and inquire how we can deliver the workshop to your company.
Topics
* Successful Sales Strategies
* Commercial Trends and Emerging Issues of immediate impact to your business
* Dynamic Emerging Markets: Why your company should be looking beyond Beijing, Shanghai and Guangzhou
* Strategic and Tactical considerations for intellectual property protection and plotting market entry/expansion
* Finding, Evaluating and Motivating your Chinese Partner
* Risk Management, Currency Issues and Getting Paid
* Critical Logistics and Supply Chain Consideration
Contact us today and inquire how we can deliver the workshop to your company.
Wednesday, September 26, 2007
Artisan Offers Pre-departure Orientation Services
Artisan Business Group has been offering detailed pre-departure orientation services to many China bounding visitors. Many Americans who have never been to China found the service very informative and helpful. The session includes city orientation, culture introduction, health care and schooling information, and employment and governmental regulation, etc. Please contact us for details.
Monday, September 24, 2007
Do You have a Business Card in Chinese?
Business cards are the most important form of introduction for Chinese businessman. It is the business card that plays a very significant role in China for people to get connected. It, thus becomes clear that business cards are of significant importance and that they cannot be taken lightly. China was the country where business cards were introduced for the first time in the 15th century. If you travel to China, you will notice that Chinese business people will always offer their business cards at the beginning of the meeting. To impress your Chinese counterparts and get connected faster, I d suggest that you give yourself a Chinese name and print your business cards in both English and Chinese! If you need help on this, contact us!
Saturday, September 22, 2007
Mattel Pledging to take Responsibility for Defective Toys
Thomas Debrowski, an executive of Mattel, apologized Friday to a senior Chinese official for the inconvenience it has caused to Chinese consumers after recalling millions of China-made toys and pledged to take responsibility, according to a Xinhua witness.
During his talk with Li Changjiang, head of the General Administration of Quality Supervision, Inspection and Quarantine, Debrowski admitted that the vast majority of its recalled toys were of design flaws rather than the manufacturing errors of China.
According to a press release announced by a lawyer of the Mattel,17.4 million toys have been recalled because of loose magnets and those recalled because of impermissible levels of lead numbered 2.2 millions.
The magnets related recalls were due to emerging issues concerning design and this has nothing to do with whether the toys were manufactured in China, said the press release.
"Mattel does not require Chinese manufacturers to be responsible for the magnets related recalls due to design problems," it said.
It also admitted that Mattel's lead-related recalls were "overly inclusive" as the company were "committed to applying the highest standards of safety for its products".
"The follow-up inspections also confirmed that part of the recalled toys complied with the U.S. standards."
The same high standards to recalls of its products have been applied in the EU and other countries despite the fact that some of these products may have met local safety standards. its said.
During his talk with Li Changjiang, head of the General Administration of Quality Supervision, Inspection and Quarantine, Debrowski admitted that the vast majority of its recalled toys were of design flaws rather than the manufacturing errors of China.
According to a press release announced by a lawyer of the Mattel,17.4 million toys have been recalled because of loose magnets and those recalled because of impermissible levels of lead numbered 2.2 millions.
The magnets related recalls were due to emerging issues concerning design and this has nothing to do with whether the toys were manufactured in China, said the press release.
"Mattel does not require Chinese manufacturers to be responsible for the magnets related recalls due to design problems," it said.
It also admitted that Mattel's lead-related recalls were "overly inclusive" as the company were "committed to applying the highest standards of safety for its products".
"The follow-up inspections also confirmed that part of the recalled toys complied with the U.S. standards."
The same high standards to recalls of its products have been applied in the EU and other countries despite the fact that some of these products may have met local safety standards. its said.
Monday, September 17, 2007
ABG Teams up with the Law Offices of Daniel Zeft
Chicago based law offices of Daniel Zeft and Artisan Business Group are exploring partnership opportunities to assist Chinese immigrants in the Midwest region. The law offices of Daniel Zeft specializes in immigration laws, and Artisan Business Group has extensive marketing channels in the Chinese communities throughout the US.
Sunday, September 16, 2007
Chinese Business Translation Services Available
If you are looking for an international Chinese translation company, please try us. Whether your project is about Chinese translation or English to Chinese translation, or about providing you with a Chinese translator or a Chinese interpreter for a few days, or about free Chinese translation, or about Chinese web translation or Chinese software localization, we can all help.
We deliver our Chinese translation services via fax, email, telephone, remote computer access and FTP.
Our projects ( translation English to Chinese or translation Chinese to English) have been well received by our customers. We serve the Chinese translation industry diligently and believe that we are doing well in the following three areas: translation quality, project turnaround time and project cost.
We deliver our Chinese translation services via fax, email, telephone, remote computer access and FTP.
Our projects ( translation English to Chinese or translation Chinese to English) have been well received by our customers. We serve the Chinese translation industry diligently and believe that we are doing well in the following three areas: translation quality, project turnaround time and project cost.
Monday, September 10, 2007
L-1 Visa for Executives from China
The United States L1 visa is a non-immigrant visa which allows companies operating both in the US and abroad to transfer certain classes of employee from its foreign operations to the USA operations for up to seven years. The employee must have worked for a subsidiary, parent, affiliate or branch office of your US company outside of the US for at least one year out of the last three years.
Companies operating in the US can apply to the relevant BCIS service center for an L1 visa to transfer someone to the US from their overseas operations. Employees in this category will, initially, be granted an L-1 visa for up to three years.
There are two types of employees who may be sponsored for USA L1 visas:
* Managers/Executives
The legal definition of management and executive roles for these purposes is quite strict, and a detailed description of the duties attached to the position will be required. In particular, the executive or manager should have supervisory responsibility for professional staff and/or for a key function, department or subdivision of the employer. Such personnel are issued an L1A visa, initially for a three year period extendible in two year increments to a maximum of seven years.
* Specialized Knowledge Staff
This category covers those with knowledge of the company's products/services, research, systems, proprietary techniques, management, or procedures. Staff in this category are issued an L1B visa, initially for three years extendible to a maximum of five years.
On completing the maximum allowable period in L-1 status, the employee must be employed outside the United States for a minimum of one year before a new application is made for L or H status.
Companies operating in the US can apply to the relevant BCIS service center for an L1 visa to transfer someone to the US from their overseas operations. Employees in this category will, initially, be granted an L-1 visa for up to three years.
There are two types of employees who may be sponsored for USA L1 visas:
* Managers/Executives
The legal definition of management and executive roles for these purposes is quite strict, and a detailed description of the duties attached to the position will be required. In particular, the executive or manager should have supervisory responsibility for professional staff and/or for a key function, department or subdivision of the employer. Such personnel are issued an L1A visa, initially for a three year period extendible in two year increments to a maximum of seven years.
* Specialized Knowledge Staff
This category covers those with knowledge of the company's products/services, research, systems, proprietary techniques, management, or procedures. Staff in this category are issued an L1B visa, initially for three years extendible to a maximum of five years.
On completing the maximum allowable period in L-1 status, the employee must be employed outside the United States for a minimum of one year before a new application is made for L or H status.
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