China Business

DOING BUSINESS IN CHINA

Since adopting market reforms in 1978, China has been among the world's fastest growing economies. This has led to dramatic developments in America's commercial relationship with China. In 1986, total trade between the United States and China was $7.9 billion. By 2003, this total had reached $170 billion, making China the United States' third largest trading partner. Despite a significant trade deficit, U.S. exports to China grew by 66 percent over the past three years as compared to 10 percent decline for the rest of the world. There are significant opportunities for U.S. businesses in China.

Find the Right Partner

Small firms typically need to find a counterpart in China to make sales and deliver products for them.

Guidebooks on doing business in China emphasize the importance of personal connections, or guanxi (GWAN-shee). Networking is an aspect of doing business around the world, but it takes on added importance in a society with a complex bureaucracy and a weak legal system. A web of guanxi helps firms navigate China's bureaucratic and distribution challenges.

The importance of relationships is another reason why many small American companies choose to sell through trading companies or local distributors, even if they have offices in China. Representative offices, the most basic, least-expensive type of foreign commercial presence in China, may only perform "liaison" activities; Chinese law does not allow such offices to sign sales contracts or bill customers directly. As a result, local agents and representatives are crucial.

It is critical that companies make sure that their partners are reliable and that they have the right motivation. Make certain your client or partner is able and willing to do all he says he will do in the contract. Ensure that it is in your partner's best interest to perform as agreed.


LAWYERS AND LEGAL SERVICES IN CHINA

Legal professionals provide service in business sector such as debt collection, company background investigation and report (e. G. Financial report, business registration details, etc), assisting foreign companies in setting up their representative offices and branch offices, resolving consumer complaints and product liability disputes, representation in litigation, arbitration and negotiation, intellectual property rights, investigation and evidence collection, consultation on intellectual property issues, trademark application, renewal, change and transfer and registration of copyright, searching prior registrations and applications and advising on selection and suitability of marks for registration, company affairs, drafting, censoring, and revising external contracts, maintaining company registrations and filings, labor and employment.

Effective legal services are vital for doing business in China and the USA.

WORLD Law Direct offers an experienced team of American and Chinese legal professionals in both China and the United States dedicated exclusively to China law matters. Our team has extensive in-country experience advising U.S., Chinese and European clients on investment, trade and commercial matters throughout China and the USA.

For more information click here