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Doing Business in China For Dummies®
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Doing Business in China For Dummies®
by Carson Block, Robert Collins
Doing Business in China For Dummies®
Copyright
About the Authors
Authors’ Acknowledgments
Publisher’s Acknowledgments
Introduction
About This Book
Conventions Used in This Book
What You’re Not to Read
Foolish Assumptions
How This Book Is Organized
Icons Used in This Book
Where to Go from Here
Building Your Foundation
So You Want to Do Business in China
Understanding China’s Appeal
Considering Ways to Get In on the Action
Deciding Whether China Is a Good Fit for Your Business
Tracing the Path to Success
Taking the First Steps: What You Can Do Today
Brushing Up on China Business Basics
Considering Why and How You Want to Do Business in China
The Experts’ Choices: Some Long-Term Growth Industries in China
Understanding China’s Business Environment
Buckle Your Seatbelt: Preparing for Common Challenges
Getting Acquainted with the Powers That Be: China’s History and Leadership
Understanding the Big, Historical Picture
Party On: Understanding Who Controls the Country
Figuring Out the Chinese Business Scene
China and the World Trade Organization
Planning for Success in China
Setting the Stage
Deciding What You Want (and Need)
Doing Your Homework
Hiring Consultants, Lawyers, and Accountants
Being Aware of Common Planning Mistakes
Putting Some Eggs in Another Basket
Starting Up in China
Traveling to and around China
Getting the Necessary Documents and Vaccines
Making Flight and Hotel Arrangements
Navigating the Airport after You Land
Around and About: Traveling within China
Getting through the Basics of Daily Life
Staying Out of Trouble
Getting Business Going through Successful Negotiation
Preparing for the Process
Practicing the Chinese Art of Negotiating
Earning Approvals in China: Understanding the Bureaucracy
Negotiating after the Deal
At Long Last: Telling the Public and Celebrating the Deal
Setting Up Shop
Choosing the Right Business Structure
Considering Location Variations
Touring the Mainland Regions
Weighing Hong Kong’s Offerings
Classifying Your Company and Reckoning with Restrictions
Establishing Your Business
Understanding Government Relations with Your Business
Knowing Why You Want to Connect with the Chinese Government
Mapping the Bureaucracy to Plan Your Network
Contact: Working Your Network
Aligning Your Government Relationships
Getting Government Approvals
Building a Local Team in China
Looking at Employees and the Law
Avoiding a Shocking Corporate Culture
Finding (and Keeping) Good People
Managing Your Employees
Getting Your Mind on Money
Introducing China’s Currency: The Tricky RMB
Choosing a Bank for Your Business
Opening All the Necessary Accounts
Getting Your Money Out of China
Financing Your Business
Paying the Government without Taxing Your Patience
Conducting Daily Business
Understanding How China Works (and Doesn’t Work)
Getting Things Done the Chinese Way
Making Face-to-Face Business Meetings Work for You
Communicating Effectively Outside the Meeting Room
Sourcing from China
Understanding Why You May Want It Made in China
Working with Suppliers
Following Tips for Supply Agreements
Avoiding Pitfalls When Working with Suppliers
Placing Orders
Shipping Your Products by Using Freight Forwarders
Manufacturing in China
Being Realistic about Savings
Considering Industry Development
Looking at Manufacturing Challenges for the Chinese Market
Selecting Your Site
Building Your Building
Approvals: Getting through the Red Tape
Hiring, Training, and Keeping Your Workers
Hiring Quality Control
Selling in China
Appealing to the Chinese Consumer
Getting Ready to Deliver: It’s All about Distribution!
Advertising
Deciding How You Want to Enter the Market
Selling to Consumers
Selling Business-to-Business
Building Successful Business Relationships
Fostering Fruitful Friendships: The Art of Guan Xi
You Scratch My Back, I’ll Scratch Yours: Introducing Guan Xi
Developing Your Own Guan Xi
Looking at the Limitations of Guan Xi
Saying and Doing the Right Things: Chinese Business Etiquette
Minding Your Business Manners
Enjoying a Chinese Banquet
Tokens of Appreciation: Giving Gifts Correctly
Managing Risks in China
Doing Due Diligence
Controlling Financial Risks
Limiting Your Legal Risks
Combating Corruption
Resolving Disputes through Arbitration
Protecting Intellectual Property
Managing Environmental Risks
Insuring Your Business Risks
The Part of Tens
Ten Clauses You Want in Your Contracts
Governing Language
Arbitration Clause and Governing Law
Confidentiality/Non-Compete
Force Majeure
Indemnity
Written Modification Only
Sovereign Immunity Waiver
Reps and Warranties
Conditions Precedent
Cross-Termination
Ten Fun Ways to Spend Your Downtime in China
Climb the Great Wall
Wander through the Forbidden City
Enjoy the Peacefulness of the Temple of Heaven
Roam around the Summer Palace
Take In the Ming Tombs
Stroll the Bund in Shanghai
Tour Suzhou, the Venice of the East
Visit Historic Xi’an
Appreciate the Enchanting Beauty of Guilin
Cruise the Yangtze River
Ten Ways to Stay on the Path to Profitability
Respect China but Don’t Be Awed by It
Develop Your Business Plan
Decide between a Wholly Foreign-Owned Enterprise and a Joint Venture
Tailor Your Products for Local Markets
Do Your Due Diligence
Make Sure Your Company Is Properly Protected
Instill Your Corporate Culture
Take Charge of Quality and Financial Control
Find Professional Help When You Need It Most
Stay on the Government’s Good Side
Doing Business in China For Dummies®
Words and Phrases to Remember
Making the Most of a Chinese Banquet
Minding Your Manners at Meetings
Foreign Exchange Bank Accounts
Common Business Blunders
Chinese Business Values
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Stay on the Government’s Good Side
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Words and Phrases to Remember
Doing Business in China For Dummies
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