The Canadian Chamber of Commerce has been around since 1996, operating as China Business Forum until 2008 when it was inaugurated as the Canadian Chamber of Commerce. Its key mission is to expand the knowledge and networks of individuals and companies by organising business seminars, networking events and internship programmes. As well as this they provide a business referral service to assist their members. Organisations registered with the Chamber include SMEs, larger companies, individuals and students.
I spoke with two representatives from the Chamber; Sarah Cheng, Media& Communications Manager and Rebecca Copelovici, Senior Membership Officer, about foreign businesses in China and the role of the Chamber in aiding business development in Shanghai.
With more and more foreign companies and entrepreneurs looking to capture a piece of the Chinese market, there are certainly opportunities for success, but with these also come some potential difficulties when setting up in the country.
Among these difficulties, Sarah pointed to the different policy changes that companies must keep up to date with. Regulations tend to be stricter when it comes to foreign firms so this can create administrative and bureaucratic hassle on top of the effort of break- ing into the Chinese market in the first place. There are a lot of standards which have to be met, for example, the government has recently brought in new regulations on banks’ wealth management products. Another example mentioned was in the construction industry, where a regulation or policy change may mean restructuring a project in the middle of development. There is also the trouble with translating and interpreting different regulations. The misinterpretation of certain laws may end up costing a lot, both in monetary terms and in terms of commerce restrictions and there is generally very little leg room with regards to flexibility for foreign companies. Unless they are on unfavourable terms with the government, Chinese companies will not usually be treated with the same levels of rigidity.
Of course there are many benefits to breaking into the country for firms willing to take the risks. China’s huge population means that there is incredible potential for market growth. As the country’s citizens become wealthier, consumption demand rises. This isn’t just happening in the most developed cities like Shanghai and Beijing, Sarah explains, but is also seen a lot in the second tier cities, such as Chengdu, Hangzhou and Jiangsu. Many firms are keen to expand into these fast enlarging markets and various Canadian trade organisations have set up offices in certain cities to encourage and support business growth. These cities are developing at highly accelerated rates compared to the first tier cities. Last year, the US Commercial Service reported that 15 second tier cities, although only making up 8% of China’s population, receive almost 60% of all imports from the US.
Another important development Sarah discusses is the growth of China’s human capital in recent years. The pool of educated and skilled young Chinese people is rising. As the country’s industry activity focus moves farther away from manufacturing and towards services, more and more young Chinese are seeking third level education both at home and abroad. Australia’s education sector is benefitting greatly from this trend as influxes of students migrate overseas to pursue their studies. This is beneficial to companies who will have a larger selection of well educated potential employees to choose from; employees who are from China and therefore will be more familiar with local business practices, common regulations and of course, the language.
A vital key to business success in China, Sarah considers, is really doing your research. Understanding the market in which you want to establish is necessary, as is carrying out due diligence on potential partners and suppliers. It is important to investigate the people and companies involved with one’s business and to try to avoid making assumptions. Proper evaluation of potential employees and colleagues is prudent too. Researching rules and regulations that apply to your line of business is paramount, as well as keeping up to date with any changes. Business relationships differ than those in western countries. Negotiations take on a different style in China and relationship building is important. Business partners, clients and also staff, prefer to gain an understanding of each other before conducting business, whatever it may be; the well known concept of Guanxi being a cornerstone of business relationship development.
The Chamber are currently working on producing “The Canadian Business Guide to China”, which covers a broad range of topics relevant to foreigners looking to conduct business in the country. Topics in the guide include choosing business structures, location & financing, laws & regulations, business culture and collaborating with Chinese partners. Practical input and advice is given from Canadian business leaders throughout.
推荐访问:Perspective China Business Commerce