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CFO Guide to Doing Business in China has gathered all the important aspects based on the author′s personal experiences as a CFO, a financial consultant, an entrepreneur and also a successful businessman in China for over a decade. It is not only a Guide for CFOs of foreign companies in China, but also a practical book for investors who want to do or are already doing business in China. Although the book focuses on financial, accounting, taxation, and auditing aspects, it also gives tips to newcomers on how to be more effective when doing business in China. The coverage includes the understanding of Chinese culture, managing and dealing with the Chinese people, strategies to expand your business in China. Practical contents based on real cases to help businesses get started and navigate the intricacies of China′s accounting system, taxation issues, currency controls, risk management, outsourcing, people management, employment issues, mergers and acquisitions.
China has changed enormously over the last 20 years. Its economy has been growing at 10% a year, and it's on track to be the world’s largest economy soon. Today, 80% of the world’s electronic goods are made in China. As a result, more and more western companies want to do business in China. But how easy is it for a westerner to do business there? Here are some tips from the British Embassy in Beijing.
How to do business in china
Take your time. In the west, business is ruled by deadlines. Chinese business people seem to act slowly by western standards, so be prepared to wait for decisions.
The applicant picks up the application for company name preapproval from the local Administration of Industry and Commerce (AIC), or otherwise, downloads the form from AIC’s Web site. The applicant completes and signs the application form and files it along with his or her identity card. The applicant must be one of the company shareholders. Effective July 1, 2004, enterprise name registration must follow the amended State Administration of Industry and Commerce (SAIC) rules (that is, the new Enterprise Name Registration Administration Implementing Measures, or Qi ye ming cheng deng ji guan li shi shi ban fa). According to the new registration rules, if the applicant goes directly to the AIC, a proposed company name is approved or rejected on the spot. This is newly regulated by Article 24 of the aforementioned measures and is implemented in practice. However if the application is made through mail, fax, email, etc, the proposed company name will be approved or rejected within 15 days.

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It can also be useful to find a reliable Chinese ally to work with you. He or she will be able to help with language or cultural problems and will also be able to understand Chinese body language. Remember too that a visit by a westerner is often seen as a great honour by Chinese companies.

You must remember to respect ‘face’. Face means having high status with your peers. Face can be lost, given or earned. Never criticize or insult someone in front of others, as losing face will make it impossible to make a deal. On the other hand, if you praise someone by saying good things about him or her, then he or she will gain face, but be careful not to do it too much.
How to do business in china
Accept the pecking order. Hierarchy is very important in China, and the group is more important than the individual. In business, Chinese people often don't like taking responsibility individually and may also not like giving opinions in front of peers, in case they lose face.

All these tricks of the trade can help you to play the game and do business successfully in China. Be prepared, and be patient if you want to be a winner in China.

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