China will build seven production bases for new materials to boost the development of high-tech industries, the top economic planning authority said Friday.
The National Development and Reform Commission (NDRC) said the bases would be built in Ningbo, Dalian, Luoyang, Jinchang, Guangzhou, Baoji and Lianyungang.
These bases will turn out new materials for industries covering information technology, biotechnology, aeronautics, new energy and environment protection.
The NDRC required that local government departments offer preferable policies for building these bases and create a sound environment for the development of high-tech industries.
Source: Xinhua
Saturday, May 31, 2008
Friday, May 30, 2008
China's Economy to Grow Moderately Slower in 2008
China's economic growth is likely to stay high but "may moderately slow down" this year, according to the country's central bank.
The economy would be affected by a decelerated world economy, weakened by outside demand and domestic disasters such as the snowstorm in January and February and the 8.0-magnitude earthquake in southwestern China, said the People's Bank of China (PBC) in a report on its website.
It noted that the country's central areas, the hardest-hit by the snow storm, need to strengthen infrastructure such as power, transport and telecommunications facilities.
Post-quake recovery work was also an arduous task, it said.
Official data showed the freak winter had led to a direct economic loss of 151.6 billion yuan (about 20.8 billion U.S. dollars), while economists estimated the quake loss could reach hundreds of billions of yuan.
The government would continue to carry out a tight monetary policy and properly control bank credits this year, according to the report.
Innovative, conservative enterprises as well as rural and service sectors should enjoy preferences in getting loans while lending to smokestack, polluting and overproducing industries must be checked, aid the PBC.
"More priority should be given to curbing price rises and preventing inflation," it said.
The PBC suggested increasing supplies of grains, edible oil, meat, eggs and vegetables to rein in surging food prices.
China will see its annual gross domestic product (GDP) growth slow down to 9.8 percent this year and 8 percent in 2009, compared with 11.9 percent last year, according to a forecast by Lehman Brothers.
Individual housing credit risk, which had triggered a U.S. sub-prime crisis, would be basically under control in China in the short term, the PBC noted.
It said the default risk caused by inadequate economic ability to repay the housing loans was relatively small in China, while most borrowers had good credit.
The average proportion of down payment in housing loans was 37.2 percent in the country, while only 3.7 percent of surveyed house buyers were unable to repay the loans in time because of money shortage, according to the PBC report.
Meanwhile, the country's commercial banks could face larger risks from borrowers who repay their housing loans in advance due to interest rate hikes and income rises, which would add uncertainties to the banks' fund use plan, it said.
Outstanding housing loans to individuals reached 2.7 trillion yuan as of the end of 2007, 36.1 percent up year on year and accounting for nearly 10 percent of all loans in the country, said the PBC.
Source: Xinhua
The economy would be affected by a decelerated world economy, weakened by outside demand and domestic disasters such as the snowstorm in January and February and the 8.0-magnitude earthquake in southwestern China, said the People's Bank of China (PBC) in a report on its website.
It noted that the country's central areas, the hardest-hit by the snow storm, need to strengthen infrastructure such as power, transport and telecommunications facilities.
Post-quake recovery work was also an arduous task, it said.
Official data showed the freak winter had led to a direct economic loss of 151.6 billion yuan (about 20.8 billion U.S. dollars), while economists estimated the quake loss could reach hundreds of billions of yuan.
The government would continue to carry out a tight monetary policy and properly control bank credits this year, according to the report.
Innovative, conservative enterprises as well as rural and service sectors should enjoy preferences in getting loans while lending to smokestack, polluting and overproducing industries must be checked, aid the PBC.
"More priority should be given to curbing price rises and preventing inflation," it said.
The PBC suggested increasing supplies of grains, edible oil, meat, eggs and vegetables to rein in surging food prices.
China will see its annual gross domestic product (GDP) growth slow down to 9.8 percent this year and 8 percent in 2009, compared with 11.9 percent last year, according to a forecast by Lehman Brothers.
Individual housing credit risk, which had triggered a U.S. sub-prime crisis, would be basically under control in China in the short term, the PBC noted.
It said the default risk caused by inadequate economic ability to repay the housing loans was relatively small in China, while most borrowers had good credit.
The average proportion of down payment in housing loans was 37.2 percent in the country, while only 3.7 percent of surveyed house buyers were unable to repay the loans in time because of money shortage, according to the PBC report.
Meanwhile, the country's commercial banks could face larger risks from borrowers who repay their housing loans in advance due to interest rate hikes and income rises, which would add uncertainties to the banks' fund use plan, it said.
Outstanding housing loans to individuals reached 2.7 trillion yuan as of the end of 2007, 36.1 percent up year on year and accounting for nearly 10 percent of all loans in the country, said the PBC.
Source: Xinhua
Wednesday, May 28, 2008
New China Business Weinars Announced
Artisan Business Group announced new web seminars in coming months: Profitable and Effective Sourcing from China; Introduction to China's General Aviation; Risk Control and Management Strategies in China Market; In addition to webinars, an online consulting session China Business Clinic is also added. For program details and online registration, please log on http://chinaseminars.eventbrite.com
Saturday, May 24, 2008
ABG Pledged $1000 to China Red Cross for Earthquake Victims
Mr. Brian Su of Artisan Business Group announced $1000 donation to China's earthquake relief efforts.
Thursday, May 22, 2008
Machinery, a Brilliant Perspective Market in China
Author:Angulo Fu
The machinery industry has a major bearing on China's manufacturing industry. In 2004, China's machinery industry accounted for 17.0% and 10.6% respectively of national sales and exports. Rapid economic development in China has led to a corresponding increase in industrial machinery. Almost all leading international players have formed joint ventures in China including John-Deere, Daewoo, Hitachi, Parker, Sanyo, ABB, Emerson, Siemens and Volvo.
Chinese machine builders are also enhancing their international participation through larger exports as well as a higher degree of internationalization. At an average annual growth rate (AAGR) of 12.0%, in 2010 consumption is estimated to reach $910.14 billion. In the near future, China will be an important player in the global industrial machinery marketplace.
Representative Machinery
1. Agriculture Machinery
Today China’s agriculture is a new era of historical development. In a long period of time from now on, expanding operating scope, industrialized management, sustainable development, and scientific and technical innovation in agriculture shall be the four tendencies and driving forces. The development and adjustment of economic construction in agriculture requires higher level and larger scope of mechanization. Now mechanization has already developed from the traditional growing wheat to rice, maize, from traditional tillage to protecting tillage, from machine for producing grain crops to oil crops and cotton economic crops, from growing to livestock farming, aquatic products industry, fruit growing, garden farmland and manufacturing agriculture products etc. So there is a bright future of market for farm machinery.
2. Construction Machinery
Construction machinery is the largest customer of hydraulic products, which makes up about more than 40% of the total market volume of hydraulic products. The percentage shall further increase in the future. China is in an extensive developing and constructing period, thus the demand of construction machinery in the coming several decades will up, and China will be the largest market in the world.
3. Metallurgical and Mining Equipment
The total demand of steel in China reached 352 million tons in 2005. Therefore steel and iron industry shall speed up the adjustment of product structure. In the next 10?15 years, put stress on manufacturing flat plate steel, especially sheet steel and products with high additional value. State should enlarge the investment for them and make the degree of self-sufficiency of steel reach 90%. For this reason, China need to use advanced machines to replace the backward machine, to realize continuous and automatic production with equipments in large scale, and upgrade the industry. Meanwhile China will give great impetus to process of group-collection for iron and steel industry, carry out technical reform of manufacturing process for large enterprises, make every effort to raise the utilization rate of steel by 10%?20%, take further steps to save energy by 15%?20%. Consequently, many new continuous casting machine and cold/hot rolling mill etc are needed.
4. Machine Tools
Along with the progress of manufacturing technique, China’s demands for high precision, high-efficiency CNC machines, is getting more and more. By the year 2010, the yearly output of CNC machine tools will be approximately 50,000 units. Now, in China there are about 3 million machine tools in use, and it is expected that about 4 million units machine tools will be in use by the year 2010.
5. Plastic Machinery
The demand for plastic products will increase remarkably to cater for the development in the fields of agriculture, automobile, electronics, light, foodstuff, packaging and construction industries and the improved living standard of the people as well. At present, the total output value of plastic in China has come to the forefront of the world, but the annual plastic consumption per capita is only 14.5 kg, less than the 20 kg world average annual consumption per capita and far from the 50 kg to 100 kg annual consumption per capita in developed countries. It is expected by the year 2010 to be a litter bit higher than the world average annual consumption per capita. The growing consumption of plastic products provides the opportunity for developing plastic machinery. It is expected that the annual demand for plastic machinery will be about 150, 000 units by the year 2010.
6. Petrochemical Equipment
Energy problem shall be the restricted factor in a long period of time in developing national economy. Accelerating the development of energy industry is of great urgency. State need to accelerate the development of petroleum and natural gas, except the project to deliver natural gas from the west to the east and other petrochemical projects are under construction, in the period of 11th five year plan shall be built 5000 km high pressure crude oil pipeline. Besides, in this period the demand of oil refining, ethylene and three synthetic materials (synthetic resin, synthetic rubber, synthetic fibre) shall increase at the rate of 6%?9%. So, there need collection and delivery equipment for oil and gas and large-scale and high-efficiency petrochemical equipment with the emphasis laid on the development of large-scale petroleum prospecting and drilling equipment for desert and ocean, large complete equipment with a yearly output of 600 000 ton ethylene, 450 000 ton synthetic ammonia, 800, 000 ton urea and chemical fibres etc.
8. Food-stuff, Packaging, Electronics, Light-industry and Textile Equipment
The emphasis is laid on the development of various high-efficiency, energy saving, multifunctional and automated complete sets of equipment and production lines, such as various liquid filling lines, production lines of fast foods and puffed foods, sterile medicine production lines and packaging lines, bag-making and bag-filling lines, suitcase making lines, high-speed tobacco processing machinery, air-jet looms, automatic winders and production lines of various household electrical appliances and electronic apparatus.
9. Harbor Terminal Facilities
In order to meet the demand of domestic construction and enlarged export and import trade, task for building coastal port and inland port is very heavy, a great number of ship loaders, car dumpers, stacking machines and container cargo handling equipment will be additionally provided or updated.
10. Ship-building and Ocean Engineering Equipment
By the year 2010, the total yearly production capacity of ship building industry will be about 10 million ton, account for 30% of the world annual output, with the emphasis laid on the development of large ocean-going tankers, LPG ships, container ships, engineering vessels, bulk ships, high-speed passenger liners and ocean-going fishing vessels. Ocean engineering equipment shall be put stress on building large engineering facilities for recovering ocean petroleum, such as large self-rising drilling ship, deep sea drilling machine, heavy-load lift, large crane and piping erection ship.
11. Power Generating Equipment
At present, electric supply has become the bottle neck, which restricts the development of economy. In the coming 20 years, the largest power-building market will be in China. Water, coal, nuclear and gas are the four pillar for power generating in China. It is estimated that the installed capacity by the year 2020 will be 960 000 megawatt, but the installed capacity per capita only 0.67 kW, less than half of that in developed countries. In future, every year need to add new installed capacity of more than 200 000?300 000 megawatt.
12. Environmental Protection Equipment
In order to keep the development of economy, society and environment well coordinated, and make the ecological damages and environmental pollution well controlled, environmental quality and comprehensive utilization of resources are raised further, state will add the investment for ecological preservation and environmental protection. China is putting emphasis on developing: urban sewage and solid wastes disposal and comprehensive utilization equipment, urban and industrial noise control equipment and atmospheric pollution control equipment.
Machinery Trade Shows
The 12th China Xiamen Machinery and Electronics Exhibition (CXMEE)
The 12th China Xiamen Machinery and Electronics Exhibition (CXMEE), authorized by China's Ministry of Commerce, is jointly organized by the China Chamber of Commerce for Import and Export of Machinery and Electronics Products, the Taiwan Electrical and Electronic Manufacturers Association, the Xiamen Municipal People's Government. It took place in Xiamen, China on April 8-11, 2008.
The 7th China (Hangzhou) International Machine Tool and Mould Expo
The 2008 China (Hangzhou) International Industrial Fair (formerly "Zhejiang International Industrial Fair") was originated in 2002, it is held at Hangzhou Peace International Exhibition and Conference Center every May. It has experienced six years of persistent, healthy and stable development. It was listed in the formal exhibition of "China Hangzhou West Lake Expo" in 2006, becoming a large exhibition and conference project specially supported by the municipal government of Hangzhou.
For more information about doing business with China, please contact us at MidwestUSAChina.com
The machinery industry has a major bearing on China's manufacturing industry. In 2004, China's machinery industry accounted for 17.0% and 10.6% respectively of national sales and exports. Rapid economic development in China has led to a corresponding increase in industrial machinery. Almost all leading international players have formed joint ventures in China including John-Deere, Daewoo, Hitachi, Parker, Sanyo, ABB, Emerson, Siemens and Volvo.
Chinese machine builders are also enhancing their international participation through larger exports as well as a higher degree of internationalization. At an average annual growth rate (AAGR) of 12.0%, in 2010 consumption is estimated to reach $910.14 billion. In the near future, China will be an important player in the global industrial machinery marketplace.
Representative Machinery
1. Agriculture Machinery
Today China’s agriculture is a new era of historical development. In a long period of time from now on, expanding operating scope, industrialized management, sustainable development, and scientific and technical innovation in agriculture shall be the four tendencies and driving forces. The development and adjustment of economic construction in agriculture requires higher level and larger scope of mechanization. Now mechanization has already developed from the traditional growing wheat to rice, maize, from traditional tillage to protecting tillage, from machine for producing grain crops to oil crops and cotton economic crops, from growing to livestock farming, aquatic products industry, fruit growing, garden farmland and manufacturing agriculture products etc. So there is a bright future of market for farm machinery.
2. Construction Machinery
Construction machinery is the largest customer of hydraulic products, which makes up about more than 40% of the total market volume of hydraulic products. The percentage shall further increase in the future. China is in an extensive developing and constructing period, thus the demand of construction machinery in the coming several decades will up, and China will be the largest market in the world.
3. Metallurgical and Mining Equipment
The total demand of steel in China reached 352 million tons in 2005. Therefore steel and iron industry shall speed up the adjustment of product structure. In the next 10?15 years, put stress on manufacturing flat plate steel, especially sheet steel and products with high additional value. State should enlarge the investment for them and make the degree of self-sufficiency of steel reach 90%. For this reason, China need to use advanced machines to replace the backward machine, to realize continuous and automatic production with equipments in large scale, and upgrade the industry. Meanwhile China will give great impetus to process of group-collection for iron and steel industry, carry out technical reform of manufacturing process for large enterprises, make every effort to raise the utilization rate of steel by 10%?20%, take further steps to save energy by 15%?20%. Consequently, many new continuous casting machine and cold/hot rolling mill etc are needed.
4. Machine Tools
Along with the progress of manufacturing technique, China’s demands for high precision, high-efficiency CNC machines, is getting more and more. By the year 2010, the yearly output of CNC machine tools will be approximately 50,000 units. Now, in China there are about 3 million machine tools in use, and it is expected that about 4 million units machine tools will be in use by the year 2010.
5. Plastic Machinery
The demand for plastic products will increase remarkably to cater for the development in the fields of agriculture, automobile, electronics, light, foodstuff, packaging and construction industries and the improved living standard of the people as well. At present, the total output value of plastic in China has come to the forefront of the world, but the annual plastic consumption per capita is only 14.5 kg, less than the 20 kg world average annual consumption per capita and far from the 50 kg to 100 kg annual consumption per capita in developed countries. It is expected by the year 2010 to be a litter bit higher than the world average annual consumption per capita. The growing consumption of plastic products provides the opportunity for developing plastic machinery. It is expected that the annual demand for plastic machinery will be about 150, 000 units by the year 2010.
6. Petrochemical Equipment
Energy problem shall be the restricted factor in a long period of time in developing national economy. Accelerating the development of energy industry is of great urgency. State need to accelerate the development of petroleum and natural gas, except the project to deliver natural gas from the west to the east and other petrochemical projects are under construction, in the period of 11th five year plan shall be built 5000 km high pressure crude oil pipeline. Besides, in this period the demand of oil refining, ethylene and three synthetic materials (synthetic resin, synthetic rubber, synthetic fibre) shall increase at the rate of 6%?9%. So, there need collection and delivery equipment for oil and gas and large-scale and high-efficiency petrochemical equipment with the emphasis laid on the development of large-scale petroleum prospecting and drilling equipment for desert and ocean, large complete equipment with a yearly output of 600 000 ton ethylene, 450 000 ton synthetic ammonia, 800, 000 ton urea and chemical fibres etc.
8. Food-stuff, Packaging, Electronics, Light-industry and Textile Equipment
The emphasis is laid on the development of various high-efficiency, energy saving, multifunctional and automated complete sets of equipment and production lines, such as various liquid filling lines, production lines of fast foods and puffed foods, sterile medicine production lines and packaging lines, bag-making and bag-filling lines, suitcase making lines, high-speed tobacco processing machinery, air-jet looms, automatic winders and production lines of various household electrical appliances and electronic apparatus.
9. Harbor Terminal Facilities
In order to meet the demand of domestic construction and enlarged export and import trade, task for building coastal port and inland port is very heavy, a great number of ship loaders, car dumpers, stacking machines and container cargo handling equipment will be additionally provided or updated.
10. Ship-building and Ocean Engineering Equipment
By the year 2010, the total yearly production capacity of ship building industry will be about 10 million ton, account for 30% of the world annual output, with the emphasis laid on the development of large ocean-going tankers, LPG ships, container ships, engineering vessels, bulk ships, high-speed passenger liners and ocean-going fishing vessels. Ocean engineering equipment shall be put stress on building large engineering facilities for recovering ocean petroleum, such as large self-rising drilling ship, deep sea drilling machine, heavy-load lift, large crane and piping erection ship.
11. Power Generating Equipment
At present, electric supply has become the bottle neck, which restricts the development of economy. In the coming 20 years, the largest power-building market will be in China. Water, coal, nuclear and gas are the four pillar for power generating in China. It is estimated that the installed capacity by the year 2020 will be 960 000 megawatt, but the installed capacity per capita only 0.67 kW, less than half of that in developed countries. In future, every year need to add new installed capacity of more than 200 000?300 000 megawatt.
12. Environmental Protection Equipment
In order to keep the development of economy, society and environment well coordinated, and make the ecological damages and environmental pollution well controlled, environmental quality and comprehensive utilization of resources are raised further, state will add the investment for ecological preservation and environmental protection. China is putting emphasis on developing: urban sewage and solid wastes disposal and comprehensive utilization equipment, urban and industrial noise control equipment and atmospheric pollution control equipment.
Machinery Trade Shows
The 12th China Xiamen Machinery and Electronics Exhibition (CXMEE)
The 12th China Xiamen Machinery and Electronics Exhibition (CXMEE), authorized by China's Ministry of Commerce, is jointly organized by the China Chamber of Commerce for Import and Export of Machinery and Electronics Products, the Taiwan Electrical and Electronic Manufacturers Association, the Xiamen Municipal People's Government. It took place in Xiamen, China on April 8-11, 2008.
The 7th China (Hangzhou) International Machine Tool and Mould Expo
The 2008 China (Hangzhou) International Industrial Fair (formerly "Zhejiang International Industrial Fair") was originated in 2002, it is held at Hangzhou Peace International Exhibition and Conference Center every May. It has experienced six years of persistent, healthy and stable development. It was listed in the formal exhibition of "China Hangzhou West Lake Expo" in 2006, becoming a large exhibition and conference project specially supported by the municipal government of Hangzhou.
For more information about doing business with China, please contact us at MidwestUSAChina.com
Wednesday, May 21, 2008
Establishing Chinese-Foreign Equity and Contractual JV Medical Institutions
To meet the needs of the reform and opening-up, and to promote healthy development of Chinese medical and public health undertakings, the Ministry of Health and the Ministry of Foreign Trade and Economic Cooperation have promulgated Provisional Measures for the Administration of Chinese-Foreign Equity and Contractual Joint Venture Medical Institutions, in accordance with laws and regulations concerning foreign investment and the Administrative Regulations of Medical Institutions. The Measures permit foreign medical institutions, companies, enterprises and other economic organizations to cooperate with Chinese medical institutions, companies, enterprises and other economic organizations to set up medical institutions in form of equity and contractual joint ventures.
Conditions for the establishment of Chinese-foreign equity and contractual joint venture medical institutions:
1). The establishment and development of Chinese-foreign equity and contractual joint venture medical institutions must be in conformity with the regional public health planning and medical institution establishment planning of the area concerned, and must follow the Basic Standards for Medical Institutions, stipulated by the Ministry of Health.
2). The Chinese and foreign parties applying for the establishment of Chinese-foreign equity and contractual joint venture medical institutions should be legal persons or entities capable of independently assuming civil liabilities. The said Chinese and foreign parties should have direct or indirect experience in the investment and management of medical and health undertakings and should meet one of the following requirements:
a. The capacity to provide world-advanced medical institution management experience, and management and service models;
b. The capacity to provide world-advanced medical technologies and equipment; and
c. The capacity to supplement and improve the medical services, capabilities, technologies, funding and facilities of a given area.
3). The Chinese-foreign equity and contractual joint venture medical institution to be established must meet the following requirements:
a. It must be an independent legal person;
b. The total investment should be no less than 20 million yuan;
c. The Chinese party involved should hold an equity share of no less than 30 percent in the Chinese-foreign equity and contractual joint venture medical institution;
d. The period of the joint venture or cooperation should not exceed 20 years; and
e. Other conditions set by the health administrations at and above the provincial level.
4). The Chinese party involved that makes its investment in the form of state assets (including evaluation-based contribution or using the state assets as conditions for cooperation) must obtain approval from the relevant departments and must, in accordance with the regulations concerning the state assets assessment management, have the state assets to be invested evaluated by an evaluation agency recognized by the state assets management authorities. The result of an evaluation confirmed by the state assets management authorities at the provincial level or higher may be used as the basis of the pricing of the state assets to be invested.
Conditions for the establishment of Chinese-foreign equity and contractual joint venture medical institutions:
1). The establishment and development of Chinese-foreign equity and contractual joint venture medical institutions must be in conformity with the regional public health planning and medical institution establishment planning of the area concerned, and must follow the Basic Standards for Medical Institutions, stipulated by the Ministry of Health.
2). The Chinese and foreign parties applying for the establishment of Chinese-foreign equity and contractual joint venture medical institutions should be legal persons or entities capable of independently assuming civil liabilities. The said Chinese and foreign parties should have direct or indirect experience in the investment and management of medical and health undertakings and should meet one of the following requirements:
a. The capacity to provide world-advanced medical institution management experience, and management and service models;
b. The capacity to provide world-advanced medical technologies and equipment; and
c. The capacity to supplement and improve the medical services, capabilities, technologies, funding and facilities of a given area.
3). The Chinese-foreign equity and contractual joint venture medical institution to be established must meet the following requirements:
a. It must be an independent legal person;
b. The total investment should be no less than 20 million yuan;
c. The Chinese party involved should hold an equity share of no less than 30 percent in the Chinese-foreign equity and contractual joint venture medical institution;
d. The period of the joint venture or cooperation should not exceed 20 years; and
e. Other conditions set by the health administrations at and above the provincial level.
4). The Chinese party involved that makes its investment in the form of state assets (including evaluation-based contribution or using the state assets as conditions for cooperation) must obtain approval from the relevant departments and must, in accordance with the regulations concerning the state assets assessment management, have the state assets to be invested evaluated by an evaluation agency recognized by the state assets management authorities. The result of an evaluation confirmed by the state assets management authorities at the provincial level or higher may be used as the basis of the pricing of the state assets to be invested.
Sunday, May 18, 2008
Going Global - Studying China Law is Key to Tapping this Emerging Market
Today, all eyes are on China in its emergence as the world's next potential superpower. With a population of 1.3 billion and a workforce that the U.S. State Department estimates at over 710 million, China's economy is burgeoning. The country's exports alone total over $760 billion, and range from electronics and apparel to furniture and medical equipment. With the country's GDP growing at around ten percent per year, it's no wonder that companies ranging from Google to Wal-Mart are trying to gain a foothold. After all, China is a country of consumers as well as of producers, and businesses around the world see China as a ripe market for goods and services.
Those looking to the bright future of China are quickly discovering that a key element of breaking into that market will be a thorough understanding of China law. In fact, many students are choosing to study at a China law school, such as the Tsinghua Law School at Tsinghua University in Bejing. The Tsinghua LLM degree, analogous to a degree in jurisprudence, has been conferred upon students from countries around the world, including the U.S., Spain, Italy, Australia, Japan, and Canada. A China LLM communicates to players in the global economy that the person holding the degree is well versed in China law and can navigate the nuances of the legal system in that country.
Such knowledge is critical, particularly because the law in China is evolving. The country has a long and sometimes contradictory legal history, dating back to the seventh century, when laws were first codified. From the mid nineteenth century through the mid twentieth century, Chinese law developed to more closely resemble Western law. Today, there are really three legal codes, one for Mainland China, one for Macao, and one for Hong Kong. The laws for Mainland China rely heavily on German civil law, whereas Macao's system has it roots in Portuguese law and Hong Kong in British common law.
According to the U.S. State Department, the next five years are key in determining China's place on the world economic stage. A State Department report says, "To investors and firms, especially following China's accession to the World Trade Organization in 2001, China represents a vast market that has yet to be fully tapped and a low-cost base for export-oriented production. Educationally, China is forging ahead as partnerships and exchanges with foreign universities have helped create new research opportunities for its students." It goes on to say that half of China's exports are produced by enterprises that have foreign investors, and that the country has the largest foreign exchange reserves in the world.
This all bodes well for those who choose to study China law. Competing in such a vibrant, growing marketplace requires knowledge of both the Chinese legal system and the ways in which it changes in response to its changing economic landscape.
Author: Chris Robertson is an author of Majon International.
Those looking to the bright future of China are quickly discovering that a key element of breaking into that market will be a thorough understanding of China law. In fact, many students are choosing to study at a China law school, such as the Tsinghua Law School at Tsinghua University in Bejing. The Tsinghua LLM degree, analogous to a degree in jurisprudence, has been conferred upon students from countries around the world, including the U.S., Spain, Italy, Australia, Japan, and Canada. A China LLM communicates to players in the global economy that the person holding the degree is well versed in China law and can navigate the nuances of the legal system in that country.
Such knowledge is critical, particularly because the law in China is evolving. The country has a long and sometimes contradictory legal history, dating back to the seventh century, when laws were first codified. From the mid nineteenth century through the mid twentieth century, Chinese law developed to more closely resemble Western law. Today, there are really three legal codes, one for Mainland China, one for Macao, and one for Hong Kong. The laws for Mainland China rely heavily on German civil law, whereas Macao's system has it roots in Portuguese law and Hong Kong in British common law.
According to the U.S. State Department, the next five years are key in determining China's place on the world economic stage. A State Department report says, "To investors and firms, especially following China's accession to the World Trade Organization in 2001, China represents a vast market that has yet to be fully tapped and a low-cost base for export-oriented production. Educationally, China is forging ahead as partnerships and exchanges with foreign universities have helped create new research opportunities for its students." It goes on to say that half of China's exports are produced by enterprises that have foreign investors, and that the country has the largest foreign exchange reserves in the world.
This all bodes well for those who choose to study China law. Competing in such a vibrant, growing marketplace requires knowledge of both the Chinese legal system and the ways in which it changes in response to its changing economic landscape.
Author: Chris Robertson is an author of Majon International.
Thursday, May 15, 2008
Cultural Mistakes You Should Avoid
Though the Chinese business people wear Western style suits and are open to Western business practices, China is an ancient culture, which has very nuanced rules of behaviour and etiquette. Most of these can be learnt if you do your homework before meeting the Chinese.
Though the Chinese will forgive most of your cultural mistakes if they get to respect you, it is best to avoid some mistakes which the Chinese feel very uncomfortable with. Here are some quick guidelines for avoiding cultural mistakes in dealing with the Chinese.
Do not do these in China -
* Make the other person lose face. This is a cardinal sin. Keeping Face or Gei MianZi - Letting the other keep face (giving due respect) is a very important concept in China. You must show the other person appropriate respect according to rank and seniority. For example, if you are buying gifts for an initial business contact, make sure you buy better gifts for the senior managers instead of buying similar gifts for everyone. To shout at a Chinese person in public, to reprimand them in front of their peers or to raise one's voice when exasperated will cause both parties to lose face. Remember always to refuse invitations if you have to indirectly. It is impolite to refuse invitation directly.
* Never write notes or letters using red ink. Using red ink symbolises that the writer will die soon.
* When setting down chopsticks between courses, never place them in the rice-bowl standing up, as this resembles sticks of incense burned at a funeral and is considered highly inauspicious. Lay your chopsticks horizontally across the rim of the bowl or on the table.
* Do not address business partners by their first name unless given permission to. Seniority is very important to the Chinese, especially if you are dealing with a State owned enterprise or government body. Instead of addressing the other party as Mr Hui Neng, address the other party by his designation i.e., Chairman Hui Neng, Director Hui Neng, or Manager Hui Neng. The sitting arrangement in a meeting room or a dining table is always according to rank, importance and seniority.
* Chinese people are superstitious about the number four, which signifies death. Many people think that this should be avoided.
* Though Chinese people are curios and like to discuss many things, avoid discussions, which may cause embarrassment such as death or divorce in the family and Chinese politics.
* Never get upset when someone asks personal questions about your age, marital status, income, and family background. This is rather common in Chinese culture.
* Never hand out your business card or receive the other person's card carelessly or with one hand. When giving out name cards or brochures, make sure you start with the most senior person before moving down the line. When giving out a name card or receiving one, ensure that you are stretching out with both hands with the card. Remember to face the card you are giving out so that the receiving party gets it facing him/her correctly and can read at a glance.
Most importantly, gaining mutual respect is the key to managing relationships with the Chinese. Besides the above rules of behaviour, a genuine understanding of the other's position, an appreciation of the other's culture and achievements and a willingness to form a long-term give and take two-way relationship is necessary. Doing business with the Chinese is difficult if mutual trust and respect has not been achieved so make this your main focus. When you gain their respect, you have all the potential for a long-term loyal business relationship with your Chinese counterpart.
Finally, try to be a fair, open-minded and decent person, who uses common sense. It helps.
Author: Rana Sinha is a cross-cultural trainer and author. He now lives in Helsinki, Finland and runs http://www.dot-connect.com.
Though the Chinese will forgive most of your cultural mistakes if they get to respect you, it is best to avoid some mistakes which the Chinese feel very uncomfortable with. Here are some quick guidelines for avoiding cultural mistakes in dealing with the Chinese.
Do not do these in China -
* Make the other person lose face. This is a cardinal sin. Keeping Face or Gei MianZi - Letting the other keep face (giving due respect) is a very important concept in China. You must show the other person appropriate respect according to rank and seniority. For example, if you are buying gifts for an initial business contact, make sure you buy better gifts for the senior managers instead of buying similar gifts for everyone. To shout at a Chinese person in public, to reprimand them in front of their peers or to raise one's voice when exasperated will cause both parties to lose face. Remember always to refuse invitations if you have to indirectly. It is impolite to refuse invitation directly.
* Never write notes or letters using red ink. Using red ink symbolises that the writer will die soon.
* When setting down chopsticks between courses, never place them in the rice-bowl standing up, as this resembles sticks of incense burned at a funeral and is considered highly inauspicious. Lay your chopsticks horizontally across the rim of the bowl or on the table.
* Do not address business partners by their first name unless given permission to. Seniority is very important to the Chinese, especially if you are dealing with a State owned enterprise or government body. Instead of addressing the other party as Mr Hui Neng, address the other party by his designation i.e., Chairman Hui Neng, Director Hui Neng, or Manager Hui Neng. The sitting arrangement in a meeting room or a dining table is always according to rank, importance and seniority.
* Chinese people are superstitious about the number four, which signifies death. Many people think that this should be avoided.
* Though Chinese people are curios and like to discuss many things, avoid discussions, which may cause embarrassment such as death or divorce in the family and Chinese politics.
* Never get upset when someone asks personal questions about your age, marital status, income, and family background. This is rather common in Chinese culture.
* Never hand out your business card or receive the other person's card carelessly or with one hand. When giving out name cards or brochures, make sure you start with the most senior person before moving down the line. When giving out a name card or receiving one, ensure that you are stretching out with both hands with the card. Remember to face the card you are giving out so that the receiving party gets it facing him/her correctly and can read at a glance.
Most importantly, gaining mutual respect is the key to managing relationships with the Chinese. Besides the above rules of behaviour, a genuine understanding of the other's position, an appreciation of the other's culture and achievements and a willingness to form a long-term give and take two-way relationship is necessary. Doing business with the Chinese is difficult if mutual trust and respect has not been achieved so make this your main focus. When you gain their respect, you have all the potential for a long-term loyal business relationship with your Chinese counterpart.
Finally, try to be a fair, open-minded and decent person, who uses common sense. It helps.
Author: Rana Sinha is a cross-cultural trainer and author. He now lives in Helsinki, Finland and runs http://www.dot-connect.com.
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