For the first time in 19 years the value of the Chinese yuan has strengthened in relation to the value of the USD. An article posted by Bloomburg On-Line online ( www.bloomburg.com ) on March 25, 2013, author Fion Lee reports in her article entitled, “Yuan Advances Beyond 6.21 Per Dollar for the First Time …
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(The Foreign Invested Commercial Enterprise) Today is the turn of the Foreign Invested Commercial Enterprise (FICE). The aim of this entry is to present the basic characteristics of this investment instrument which basically is used to carrying on the following activities: Import, export, distribution and retailing Retailing–i.e. selling goods and related services to individual persons …
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It is no secret. Many Chinese drivers and wannabe drivers like luxurious foreign made cars. Knowing this, many foreign car makers have jumped into the Chinese market to take advantage of the situation. Enter Volvo, the Swedish car maker. Volvos are very popular in China and Volvo’s sales numbers prove that….or do they? Reuters on-line …
(The Wholly Foreign Owned Enterprise: Part 2 of 2) The purpose of this entry today is to complete this brief description about the functioning of the WFOE. In particular today we are going to concentrate on the corporate governance of this investment instrument. Corporate governance of a WFOE With regard to the governance of an …
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(The Wholly Foreign Owned Enterprise: Part 1 of 2) Having examined the obstacles in doing business in China and explained some very important aspects of this particular market, it is time to introduce the main instruments at the disposal of the foreign investor to establish a presence I China. In fact these same investment vehicles …
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U.S. Treasury Secretary Jacob Lew became something of a Weibo (a domestic Twitter like service) “rock star” on March 19, 2013 when he went with Chinese official to the Bo Yuan Dumpling House in Beijing near the U.S. Embassy. What he ordered for lunch had Weibo abuzz with approving comments and scorn for the wasteful …
The complexities of the Chinese market can be very daunting and can make the more traditional physical ways of entering China, such as Joint Ventures and WFOE (Wholly Owned Foreign Enterprise), very difficult if you are not familiar with the characteristics of this market, and as I stressed in my previous entries, with the culture …
How M&A can mitigate cultural differences when entering the Chinese market Read More »
Staggering amounts of money exchanges hands and gets moved around China and out of China every day. How is it done? The “Wall Street Journal China” posted an article on its “China Real Time Report” yesterday, March 19, entitled, The Mechanics of Moving Money out of China”. ( http://blogs.wsj.com/chinarealtime/2012/10/19/how-hong-kongs-legal-system-enables-china-cash-flight/ ) written by Alex Frangos. Mr. …
Part three: Social Relationships and the concepts of guanxi and mienzi Today’s entry is about “social relationships” and the concepts of guanxi and mienzi . It is of extreme importance to become familiar with the Chinese way of interact with other people to be more effective in this particular environment. Chinese Culture has an important …
Part four: Indirectness in the comunication and China’s rising Middle Class Having explained the concepts of “guanxi” and “mienzi” and the importance to adapt your strategies to this particular market, today it is necessary to stress another aspect, namely the indirectness in the communications. Chinese people do not express their thoughts in the same manner …
