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The following presentation
has been made by China-
Access,
Access a China-based
consulting company to
assist overseas companies
to enter China market. It can be used
as a first guide
if you are
interested in
Are you ready to setup busines China:
your business in China? “If you are
thinking of
doing business
with China but
don´t know
where to begin”.
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“China is confident, for China itself is a big
market with 1.3 billion people, and is making
effort to stimulate domestic demand. Under
the financial crisis, China’s foreign trade is
confronting with severe challenges, but China
is taking positive measures to boost the
growth of foreign trade, expanding exports and
imports.
The momentum of economic globalization
remains. No country is able to find a solution to
the financial crisis on its own, only joint efforts by
all countries and deepening of cooperation can
make an earlier recovery of the world economy.
China will stick to opening up, and keep
enhancing trade and economic cooperation with
foreign countries.
China values the important role played by
foreign business in advancing China’s
economic development and creating more
jobs. While encouraging China’s business
to expand overseas investment, China, as
always, welcomes foreign business to
invest in China, and vigorously creates
favorable investment environment for
them, and helps them to solve the
problems they encounter.”
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“China Has the Strongest
Ability to Withstand the
Crisis in the Emerging
Countries ”.
Standard & Poor’s – Feb, 2009
Haitao Qi,
CEO Devott Ltd.
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Why China? Population • Welcome to the
“world’s biggest
market” with more
than a 1.3 billions
consumers.
Fastest
Growing Market
Economy Opportunity • A technological
stronghold in the
country can in time
• China is now the become a beachhead
2nd largest economy for future expanded
business development.
in the world and the Economic
last grows have been
Reforms
at a 10% rate
annually.
• A deep and gradual
economic reform
gives way to new
business pportunities.
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Cost
Why China? Advantage
• China’s cost are
typically 20-30%
lower than India
and more resistant
to the kind of wage
inflation and
employee turnover.
.
Human
Resource Vendor
Availability Diversification • Mantain more
control, foster
competition and
• The university system spur performance
in China is projected to by working with
more than one
produce 5m graduates Geo-Political outsourcing vendor.
by year (more than
doubled in the last ten Diversifications
years).
• Spreading offshore
activities to different
countries helps
protect from political
and business risk.
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China holds the 1st.
position:
2) Rising star
3) Most impressive
last year
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China facts
Table of investment utilization of FDI
Number of projects: Top 10 countries Table of investment utilization of FDI
Realized FDI: Top 10 countries(mill. U$S)
1 HongKong 12857
2 Taiwan 2360 1 HongKong 41036
3 South Korea 2226 2 Virgin Island 15954
4 United States 1772 3 Singapore 4453
5 Japan 1438 4 Japan 3652
6 Virgin Island 975 5 Cayman Islands 3145
7 Singapore 757 6 South Korea 3135
8 Canada 410 7 United States 2944
9 Germany 390 8 Taiwan 1899
10 Others 4329 9 West Samoa 2550
10 Others 13626
Total Projects 27514
Total Projects 51359
Source: Foreign Investment Department of the Ministry of Commerce
Source: Foreign Investment Department of the Ministry of Commerce
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Economic Map of China
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Economic Map - Detailed Information
Population
Surface Area GDP Per Capita
(million
(thousand sq. km.) (US dollar)
persons)
Eastern Region
Beijing 16.8 15.81 6,637
Fujian 120 35.58 2,824
Guangdong 180 93.04 3,726
Hainan 34 8.36 1,664
Hebei 190 68.98 2,231
Jiangsu 100 75.5 3,789
Liaoning 150 42.71 2,865
Shandong 150 93.09 3,129
Shanghai 5.8 18.15 7,587
Tianjin 11 10.75 5,413
Zhejian 100 49.8 4,192
Central Region
Anhui 130 61.1 1,322
Heilongjiang 460 38.23 2,130
Henan 160 93.92 1,751
Hubei 180 56.93 1,749
Hunan 210 63.42 1,572
Jiangxi 160 43.39 1,420
Jilin 180 27.23 2,067
Neimenggu 1100 23.97 2,637
Shanxi 150 33.75 1,857
Western Region
Chongqing 82.3 28.08 1,638
Gansu 390 26.06 1,152
Guangxi 230 47.19 1,354
Guizhou 170 37.57 761
Ningxia 66 6.04 1,558
Qinghai 720 5.48 1,547
Shaanxi 190 37.35 1,596
Sichuan 480 81.69 1,387
Xinjiang 1600 20.5 1,973
Xizang 1200 2.81 1,372
Yunnan 380 44.83 1,180
Recent
• Global financial
markets are likely to Economic
Economic remain strained during Developments
Overview
policies 2009.
• The global financial and
• China’s real • China has important • Risks and uncertainty economic crisis intensified
economy has been short, medium, and about the international in the fall of 2008.
hit hard by the global long term challenges. outlook are unusually
crisis, but has been large. • The adverse impact on
holding up. • With the short and output and trade is very
medium term objectives •We expect private large and geographically
• Although China’s overlapping, the consumption growth to broad-based.
growth is set to slow, medium term objectives decelerate, but to
it is still likely to need to shape remain significant. • There are useful
outgrow most other economic policies in synergies between China’s
countries. 2009. short and medium term
• China’s economy is policy objectives.
• There are useful • Looking ahead, there likely to receive support
synergies between may be less need for from the expected • The slowdown is adding
China’s short and investment-oriented global pick up if and further downward
medium term policy stimulus. when it occurs late in pressure on inflation.
objectives. 2009 or in 2010. .
• Financial sector
reform will help.
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Some predictions about China
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Why do the worldwide entrepeneurs
want about China?
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Why do the worldwide entrepeneurs
want about China?
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Since many decades ago the world is buying directly
Buy products . from China several productsMade in China
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Barriers – Entry to China
Language – the first and biggest barrier for
.foreign companies to enter to China
Government– unfamiliar with the central & Language
local government and Chinese laws &
.policies
Culture – conflicts of western and eastern
cultures set another barrier for business Distrust
.development in China
Culture Government
And thedistrust ensued makes it harder for
foreign companies to enter and develop in
.China market
According to World Bank’s report, from 2006 to
2010, 30% of the 250 billion U.S. dollars of
oversea investment to the developing countries
.would go directly to China
Currently China has approved the establishment of
over 500.000 foreign-financed enterprises and
has used 270 billion U.S. dollars of foreign
funds. Those foreign-funded enterprises import
.over 560 billions U.S. dollars of goods annually
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Different corporate structures
Representative Office
Joint Venture
Branches.
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Are often the first step taken
Representative by foreign companies when
establishing a permanent
Offices presence in China.
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Most common businesses
Joint Venture for a foreign firm with a
local Chinese partner.
Disadvantages:
Advantages:
• Inflexibility
• Only option, as industry is
• Difficulties in expanding
restricted.
investment.
• Quick
• Differing management
establishment/contribution
styles.
of existing facilities.
• Exposure of intellectual
• Local expertise.
property.
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Wholly This kind of enterprise is
Foreign-Owned 100% owned by a foreign
company or companies.
Enterprise
Advantages: Disadvantages:
• Management control. • Lack of experience and local
• Easier to terminate. connections.
• Simpler establishment • May not be listed on stock
procedures. exchange.
• Protection of intellectual
property.
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Are used by certain
Branches industries: banking,
insurance and shipping.
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Outsourcing Cities and Parks
Right until the end of July,
2008, MOC of China has
successively authorized 16
Ha’erbin
cities and 4 national
demonstration zones
(includes Suzhou Industrial
Park etc.) in 4 groups as the
base cities for China’s Beijing
Dalian
service outsourcing industry.
Now, there are around 50 Tianjin
outsourcing parks in China,
Xi’an
with whom we have Jinan
Nanjing
established and maintained Hefei
Shanghai
good cooperation Wuhan
relationships. Thus we are Chongqing
Chengdu Hangzhou
able to offer our clients the
researches and evaluations Changsha
on these parks regarding
their basic information,
preferential policies, taxation Guangzhou
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The Who´s who in China Outsourcing
Chinasourcing is the first consulting service provider dedicated to
the sourcing industry in China. It has positioned itself as an
outsourcing industry service provider (ISP) to capitalize on the
historical opportunity of China’s economic transition from
manufacturing to services, and fully leverage the transfer of global
services into China and the outsourcing frenzy worldwide.
Chinasourcing focuses on the outsourcing industry, and takes
advantage of www.chnsourcing.com to deliver industry research,
information, sourcing management, process optimization,
business consulting, staff training, project intermediation and
headhunting services to outsourcing clients and vendors.
Chinasourcing rides the wave of China’s economic transition to
services to build a bridge linking domestic and international
business services. By consolidating the various resources at home
and abroad, it has gradually become the flagship service brand in
China’s outsourcing industry.
Industry Website:
Chinasourcing Website (www.chnsourcing.com) is the portal
website of China’s outsourcing industry, a springboard by which
overseas outsourcers enter China’s marketplace, and a platform of
information release and project transaction in China’s outsourcing
industry. The website is dedicated to creating the industry chains
of information release, transaction platform, industry exchange,
intermediary services and software products, and delivering
outsourcing solutions. It is intended to become a bridge and link
between outsourcing clients and vendors.
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Industrial Development Zones (*)
Nantong
Focus: Chemical, electronic information, IC,
telecom, port services.
Some clients: Quanyong Electric, Zhongtian
Optic Fiber & Devices.
Ningbo
Focus: Semiconductors, biochem, electronic
information, precision machinery.
Selected companies: Exxon, Samsonite, Dow
Chemical.
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Eco Cities
TIANJIN´S
Will be located 40 km from Tianjin city and
150 km from Beijing, will cover 10 sq km of
salt pan, 10 sq km of desert and 10 sq km of
watered. Located along the Jiyun River in
Tianjin's Hangu district, the area will
comprise residences, commercial space and
factories, all of which will comply with
international standards of energy use and
environmental protection. The Chinese and
Singaporean governments approved a
development plan for the eco-city. It will be Drafted with three principles in mind,
the second flagship Sino-Singaporean the master plan aims to make the eco-
cooperation project since the Suzhou city a practical, scalable and replicable
Industrial Park and will draw on Singapore's model that promotes green living,
eco-conservation experience in regard to economic development and social
efficient energy use and environmental harmony for cities in China and
protection. elsewhere.
The eco-city may house 350,000
residents when it is completed in 10 to
15 years.
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Let’s know more about some international
companies in China
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They have just
arrived…… Acushnet
Michelin Apple
NBA Properties Inc. BASF 3Com
BAT Harley-Davidson
Chanel NEC Corporation 3M
Beiersdorf AG Hasbro
Chrysler Nissan Motor ABB
Bosch Henkel
Coach Novartis Abbot Laboratories
Cisco Systems Hermes
Coca-Cola Panasonic Adidas
Dahon Hindustan Pencils
CommScope Panduit Alcatel
Hitachi
Continental Pernord Ricard Eli Lilly AMD
Honeywell
Creative Technol. Peugeot Emerson Amway
IBM
Cummins Pfizer General Motors Anheuser-Busch
ICI
Daimler Philip Morris Hewlett-Packard Applied Materials
John Deere
Danfoss Prada SA Intel Armstrong
JT International
Degussa Puma Johnson & Johnson AstraZeneca
Karsten Manufact.
Dell Roche LVMH Fashion Gro. Bacardi
Kodak
Delphi Rohm and Haas Microsoft Baxter
Konika Minolta
Denso S.C. Johnson Motorola Bayer
Lafarge
Diageo Samsonite Nike Beaufour Ipsen
Legrand
Disney SanDisk Nokia BIC
Lexmark
DuPont Sanofi-Aventis Philips BMW
Logitech
Eaton Sanyo Procter & Gamble Bose
Lutron
Energizer Sara Lee Qualcomm BP
L'Óreal
Epson Schneider Electric Samsung Bridgestone
Makita
Estée Lauder Servier SAP Brother
Mars
Fendi Sony Ericsson Siemens Burberry
Mary Kay
Ferrero Tiffany and Co. Sony Corporation Callaway
Mahle
Ford Time Warner Underwriters Calvin Klein
Mattel
General Mills Zippo Canon
Unilever McCormick
Glaxo Smithkline Xerox Merck Casio
Gore MGM Caterpillar
Gucci
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Appendix
Our services in the PRC
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As the name implies, Chinacces
is a China-based consulting
company whose mission is to Chinaccess is committed to help
foreign companies that wish to
assist overseas companies that
develop and then implement
wish to enter China market entrance strategies into the China
successfully. market; and to pursue a long-
term, successful and low-cost
growth trajectory in China.
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SYSTEM NETWORK
Methodologies tailored to the Act locally, think globally.
China market such as an Our global network with
advanced database collection agent representatives lets
system; in-depth research us keep informed and
processes; strict quality active in global
assurance system; integrated TEAM business.
service based on market International
research, market evaluation; management and
creating distribution consulting teams EXPERIENCE
channels to the point of made up of experts Extensive experience in doing
reaching business expansion with rich experience business in China and in
in China. (average 8 years) successfully assisting foreign
and knowledge of companies to enter the China
the China market. market, achieve business growth
SOLUTION and source reliable suppliers in
One-stop solutions customized China.
to the specific needs of our RESOURCES
customers. Chinaccess Deep-rooted local business resources are the
continues to provide full powerful backbone of all our services and
service as the operation is set solutions. We have developed and maintained
up and expanded in China. extensive relationships with China's national and
local governments, industry organizations and
have a broad business network covering 28 major
cities in China. www.china-access.com
We have the key to
China
China-Access
http://www.china-access.com
Tel: +86 2266203159 - Fax: +86 2266211568
Contact: Mr. Maximiliano Malamed
E.mail: maximiliano.malamed@chnsourcing.com www.china-access.com