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Legal considerations for doing business in China




Top Ten Legal Considerations for a Company Doing Business in China Today

  1. Doing business in China for US companies involves considerations not only of Chinese law, but also of US law. Companies need to understand the impact of both countries’ laws on their business dealings with China.
  2. China’s commercial laws are changing rapidly to correspond to Western commercial laws, but the process is not yet complete, and there remain many uncertainties.
  3. What the law says in China and how it is implemented are not always the same, just as it is in the U.S. Although the laws have improved, implementation of the laws is sometimes spotty.

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Top Ten Cultural Rules for US Companies doing Business in China

  1. Form a connection with someone who has first hand experience conducting business and developing strategic relationships in China.
  2. When in China, cultivate contacts with many people in order to find the right decision makers.
  3. Knowledge of the culture and language is key. Even basic understandings will go a long way and your hosts will appreciate your initiative.

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Top Ten Rules for using Manufacturing Services in China

  1. Take time to build a sound relationship with your Chinese Counterparts.
  2. Establish the right management structure for your relationship in China.
  3. Look for a Chinese partner with strong quality and process control.

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Top Ten Prerequisites for the Model Chinese Sourcing Project

  1. Stable design with little revisions needed
  2. Obtainable technology
  3. Detailed technical specifications available, such as engineering drawings, prototypes, etc.

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Top Ten Things to Know About Chinese Communications and Culture

  1. The traditional Chinese "handshake" consists of interlocking the fingers of the hands and waving them up and down several times. This is rarely used today (except during festivals, weddings and birthdays of the elderly), and the Western-style handshake is used by most everyone. When greeting, a slight bow often accompanies the handshake, but do not bow from the waist in the style of the Japanese. While a firm grip is expected in the West, the Chinese employ a gentler handshake. Except for shaking hands, do not touch anyone unless you know them very well. Never embrace or slap a Chinese associate on the back.

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Top Ten Guidelines to Gift-Giving in China

  1. Lavish gift-giving was once an important part of Chinese culture. Today, official policy forbids gift-giving as it can be considered bribery. Though the policy is softening, there may be times when a gift will absolutely not be accepted. Should you find yourself in this situation, graciously say you understand and withdraw the gift. Smaller, less expensive items will not be seen as a bribe, but in any case, you will have to approach gift-giving with discretion.

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