Case Study: Doing Business in China Business Library University of Florida
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Doing Business In China
Doing Business in China
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 Business in China China has awakened. It is now one of the fastest growing markets in the world and is becoming the world's factory floor. This page provides a variety of resources you can use to learn about doing business in China. There are links to the U.S. Government's extensive information sources as well as many other resources available on the Internet. There are links and brief excerpts from recent reports and articles about business in China. Note:
Recent Articles & Reports
China Success Stories Smart China Sourcing. Sponsored by
Global Sources. New Resource: "All
Roads Lead to China™".
China and India's Financial Systems: A Barrier to Growth.
McKinsey Quarterly,
Vol.11, January 2007. Free Registration.
Selling in China.
Special Section. Knowledge
@ Wharton. October 2006.
Report from China: The New Entrepreneurs. By Sean Silverthorne.
HBS Working Knowledge, October, 16,
2006.
Lesson's from a Global Retailer: An Interview with the President of Carrefour China.
McKinsey Quarterly. July 2006.
The Value of China's Emerging Middle Class.
McKinsey Quarterly. June 8, 2006.
Understanding the Chinese Consumer.
By William McEwan, Xiaoguang Fang, Chuanping Zhang, and Richard
Burkholder. HBS Working
Knowledge. April 24, 2006.
China's Five Surprises.
By Edward Tse.
Strategy+Business. Booz, Allen,
Hamilton Resilience Report No. 28.
Country Briefings: China. Economist.com
The Tiger in Front: Survey: India and China.
Economist.com. May 3, 2005. China Business Information
Center..Export.gov.
FAQs about Doing Business in China.
Export.gov: China Business Information Center.
China: Enter the Dragon. Special Report.
Knowledge@Wharton.
China Overview: globalEDGE | Country Insights. Additional Sources: Guanxi and Graft "Opinion is divided over doing business ethically in China. One view holds that corruption is endemic on the Chinese Mainland and that business ethics there is an oxymoron... "Nonetheless, the 1998 Corruption Index ratings (University of
Gottingen and Transparency International, 1998), a poll of polls
based on perceptions by international business people and expert
commentators, lends only mild support to the claim that there is
endemic corruption on the Chinese Mainland. China is ranked 52nd out
of 85 countries in terms of the perceived integrity of its
officials; i.e., according to seasoned opinion, it is not among the
most corrupt environments in the world." [ Source: "Ethical Dilemmas
of Relationship Building in China."
Thunderbird International Business Review Getting Small Businesses Export Ready "With the rapid pace of economic globalization, small businesses
in the United States can no longer afford to ignore the challenge of
international commerce. The question a small business owner once
asked was, 'Do I export my product, or not?' The question has now
become, 'If I don't expand my operations internationally, will I
survive?' The small business has three major incentives to consider
internationalizing: (1) domestic markets are becoming saturated, and
continued growth will require new markets; (2) foreign competitors
are entering the American market and out-competing U.S. businesses;
and (3) as production costs continue to escalate, U.S. companies can
create a competitive advantage by securing heaper production
facilities overseas." [Source:
Thunderbird International Business Review Country Commercial Guide: China "China is rich in contradictions for U.S. firms. The world's most populous nation, China covers an area larger than the United States. Yet the China market is small and concentrated in a few areas along the eastern seaboard. China is one of the world's oldest civilizations, with thousands of years of history, literature and culture. Yet the People's Republic is a mere 50 years old and most of the laws and regulations governing business and trade have been written in the past twenty years. Courtesy toward guests is a virtue in Chinese culture, and Chinese people can be extraordinarily hospitable and kind. Yet everyday discourse in china is rude and confrontational and the China market is full of cheats and swindlers. China is a communist country; the first article of the Chinese constitution states that China is a socialist country under the leadership of the proletariat. Yet, over the past twenty years China has moved from a planned to market economy and is now in many ways more capitalist than communist." [Source: FY2001 Country Commercial Guide: China. U.S. Department of State. 123 p.] Turley's Top Ten Tips on Doing Business in China
[Source: Contact China: A Resource Guide for Doing Business in the People's Republic of China. U.S. & Foreign Commercial Service. American Embassy: Beijing. People's Republic of China.] Chinese Family Businesses HONG KONG -- "Chinese family-run businesses, which helped power a decade of breakneck growth in Asia, are at a crossroads as many struggle to hold on to staff, fend off foreign competition and exploit the potential of the Internet, according to a report from the Economist Intelligence Unit and Andersen Consulting. "The problems illustrate how the trends of globalization and liberalization are shaking up Asia's most powerful business groups, just as many families hand leadership to a new generation. "As they go into the third generation, [Chinese family
businesses] have to think about how they can professionalize
management and move from a family-based connections-type business to
a rules-based organization," says Joseph Lobbato, a manging partner
at Andersen Consulting and a contributor to the report." [
Source: "Family Businesses in China Struggle with Globalization. By
Peter Wonacott. 8/3/2000. The Wall Street Journal. In
Factiva Return of the Natives "Reversing decades of exodus, some of China's best and brightest are returning from overseas to take part in the Chinese gold rush. Reforms in China, coming at the same time the U.S. economy is stagnating, are convincing some successful Chinese executives that their hottest prospects are in their homeland. For them, China shimmers with the same promise Silicon Valley offered 10 years ago. "The fact that China seems so attractive to entrepreneurs illustrates the nation's changing attitude toward business. People such as Mr. Luo are being wooed by Chinese government officials offering free plane tickets, hotel rooms and venture-capital funding. Five years ago, China didn't have local venture-capital firms. Today it has about 200, most of them backed by government agencies, accounting for about half of all such financing in the country. The Chinese government has set up more than 60 "returnee start-up parks" in recent years and says returnees have created almost 4,000 companies. "Last fall, the Communist party enshrined in the Chinese constitution a new ideology, dubbed the "Three Represents." It holds that the Communists should represent the greatest number of people, advanced culture, and the most advanced forces of production, including private businesses. The party, it says, is no longer the vanguard only of the working class, but of all Chinese -- opening the way for tycoons to join the Communist party and be appointed to senior posts." [Source: "After Years in U.S., Mr. Luo Seeks Fortune in China."
By Jonathon Kaufman. The Wall Street Journal A1, C1 March 6
2003. In
The Wall Street Journal Shanghai Sophistication "Shanghai is China's commercial and retail capital, being the busiest shopping city in the whole country, attracting the most ambitious new retail developments, and drawing in over 200,000 shoppers per day into its main shopping street, Nanjing Road. "Shanghai is surrounded by six of China's richest provinces, and its position as China's foremost commercial port, has long given it a reputation for being China's most cosmopolitan city. "These factors have made Shanghai shoppers the most sophisticated
in the country, with an eye for top quality and attractive
presentation, and a strong awareness of contemporary fashion
trends." [Source: "China's Main Commercial Centres.".
GMID: Global Market
Information Database China's Broadband Market "We attended a China broadband conference in Beijing where
China's major operators presented their strategies for the last
mile. China has done very well in building its fixed-line
infrastructure with 140mn fixed-lines at the end of 2000 or a
penetration rate of 12%. Unlike most countries, the local fixed-line
business has been a growth business, but the strategy is shifting.
While there is plenty of room for fixed-line penetration to grow,
there is a sense that in certain areas, saturation is beginning to
settle in. The major cities and areas of wealth such as Shanghai,
Beijing, and Guangzhou all have fixed-line penetration rates of
30-45%. In addition, with multiple operators building backbones and
installing the latest dense wave division multiplexing (DWDM)
technology, long-haul capacity has grown strongly in China. The
operators expect that the next major area of competition, and
potentially the most lucrative, will be to bring broadband to the
last mile." [Source: "China Broadband: Next Wave of Competition:
Strategies of the Market Players." By F. Cheun, et al. Merrill Lynch
Capital Markets. March 5, 2001. In Investext Plus
on
InfoTrac Negotiating Strategies "Chinese negotiating strategies and practices are extremely
different from those of Europeans and Americans. As a result, many
contracts give the Chinese partners unusual advantages. Knowledge of
how the Chinese negotiating process works can reduce these
inequalities, even though experienced global negotiators see Chinese
negotiators as among the world's best and toughest." [ Source:
Business Guide to Modern China. By John P. Alston. East
Lansing, Mich.: Michigan State University Press, 1997. In
netLibrary Chinese Business Behavior "How can non-Chinese managers understand the often puzzling (to them) behavioral characteristics of Chinese businesspeople? [Ming-Jer] Chen believes they need to familiarize themselves at least in part with the social and cultural values of the ethnic Chinese. These values, he asserts, form the basis for Chinese business practices, even pervading day-to-day corporate decisions. 'The Chinese company is not just an economic entity. It’s a socio-economic combination. For instance, in the case of overseas Chinese, many businesses are family businesses. Families’ agendas and goals are involved, a situation that often leaves Westerners feeling frustrated and confused about what is going on. Even public companies frequently have their own social networks, which play an important role in the decision-making process. To complicate things even more, in the PRC the majority of companies are still state-owned, or even state-affiliated, so they have a different kind of decision-making and reporting process.'"[Source: "Breaking Through the Chinese Wall: Doing Business with the Chinese." In Knowledge@Wharton.]
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Key Websites & Reports
Cowboys and
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| Revised: June 23, 2005. Peter Z. McKay, Business Librarian. 352.273.2634. Office: 513 Library West. | ||
