We provide international clients doing business in China “specialist troubleshooting” services through a team of experienced in-house professionals and a remarkably qualified advisory panel. Some common troubleshooting exercises include:
profit repatriation – many foreign businesses are rushing into the China market to capitalise on promising opportunities since China’s WTO accession and its astonishing economic growth. While many might indeed succeed and generate generous returns, many also often overlook the importance of corporate structuring upon entering the China market, only to find that their hard-earned profits are trapped in China.
China runs a tight monetary and foreign currency exchange control regime, business entities (both foreign and domestic) need to seek prior approval from relevant Chinese authorities before money can be remitted overseas. The approval process is often complex and time consuming with the absence of a proper legal structure in place to almost certainly add to the trauma. Our team of professional advisors have designed and implemented a number of profit repatriation strategies to assist our clients resolve repatriation issues.
Chinese government lobbying and negotiations – unlike western free market economies, the Chinese government plays a very powerful role in the economy and day-to-day business in general. The Chinese government has imposed over the years various restrictions and regulations in different sectors of the economy, in particular, precluding foreign investment to protect domestic entities from foreign competition. Many sectors are opening up gradually as part of China’s commitment to WTO accession. However, the lack of transparency and often differences in interpretation of the ever changing legal system, make doing business in China a bigger challenge for foreign investors.
Negotiating and lobbying with the Chinese government is an integral and inevitable part of doing business in China. International investors might be required to deal with various levels of the Chinese government e.g. from applying business registration with the State, Provincial, Municipal or local bureaux to obtaining an industry specific approvals etc. Foreign businesses often find it difficult to liaise with Chinese authorities as a result of cultural differences and or language barriers. We provide services in assisting international clients to deal directly with the Chinese authorities in resolving statutory issues often through our established connections and strong relationships built over the years with the relevant departments.
market growth strategies – China is an enormous market. On the other hand, China is a much segmented market with 23 provinces, 5 autonomous regions, 4 municipalities, and 2 special administrative regions. Doing business in China in no way implies serving one common consumer group. International investors need to analyse the demographics of the country and examine variances between regions in consumer behaviour and spending power etc. International investors are often inspired by impressive statistics in China e.g. 1.3 billion population, 9 percent economic growth, etc. Hence they often adopt a market growth strategy targeting China as a whole. In practice, effective strategies should be formulated to tailor for individual segments of the market. We are experienced in assisting foreign entities to design and implement effective market growth strategies to expand their business in China.
relationship management – the Chinese words “guanxi” highlights the importance of relationships in the China market. Foreign investors often enter into joint ventures with Chinese companies as a common market entry strategy, leveraging off the Chinese partner’s existing operations and established channels, and or due to compliance with regulatory restrictions on foreign investment in certain sectors or industries. Relationship management is vital in a joint venture or business partnership in that individual partners need to understand the mindset of their counterparts to attain a successful business venture. “The Art of War” is a classic piece of literature that plays much influence on the mentality of Chinese businessmen today. We help international clients to prepare their mindsets in dealing with their local business partners and flourish the relationships to jointly achieve common objectives in the China market.
risk management – in addition to common business risks, foreign entities doing business in China are also exposed to a wide range of other risks in a rapidly changing regulatory environment. Risk management defines issues evolving from political instability, environmental protection, social economic pressures, and other non-market controls over the economy e.g. foreign currency exchange controls, etc. Foreign investors must carefully identify these risks. In particular, ones pursuant to the China market, and implement a system to methodologically address and manage these risks to minimise any potential loss. We work with clients together in identifying and evaluating risks surrounding their business and related stakeholders. Our team of professional advisors are well experienced in assessing and managing various types of risks, in particular – China related risks.
Specialist troubleshooting services are tailored to meet specific requirements and situations. Please contact us for assistance or further information.