Upload
tmfgroup
View
1.410
Download
2
Embed Size (px)
DESCRIPTION
Citation preview
1
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
© 2012 Deloitte AP ICE Limited
Case Studies
3
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Kraken YU, ( 余小晴 )
Director, Ireland HK Business Forum, Dublin Chamber of Commerce
& CEO at Cornerstone (Research) International
4
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaKnow Asian Markets, Grow Asian Markets
爱尔兰
CHINA
China: Country profileCulture IssuesCase Study: Software IndustryDo’s & Don’t
Know Asian Markets, Grow Asian Markets
5
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaChina Country Profile
China is the world's most populous country, with a continuous culture stretching back nearly 4,000 years.
6
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaChina – Country Profile
Many of the elements that make up the foundation of the modern world originated in China, including paper, gunpowder, credit banking, the compass and paper money.
After stagnating for more than two decades under the rigid authoritarianism of early communist rule under its late leader, Chairman Mao, China now has the world's fastest-growing economy and is undergoing what has been described as a second industrial revolution.
China is the world’s second largest economy.
6
7
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaChina – Country Profile
The People's Republic of China (PRC) was founded in 1949 after the Communist Party defeated the previously nationalist Kuomintang in a civil war. The Kuomintang retreated to Taiwan, creating two rival Chinese states - the PRC on the mainland and the Republic of China based on Taiwan.
Beijing says the island of Taiwan is a part of Chinese territory that must be reunited with the mainland, by force if necessary. The claim has in the past led to tension and threats of invasion, but since 2008 the two governments have moved towards a more cooperative atmosphere.
8
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaChinaProfile- Economy
Nowadays China is one of the world's top exporters and is attracting record amounts of foreign investment. In turn, it is investing billions of dollars abroad.
As a member of the World Trade Organization, China benefits from access to foreign markets. In return it must expose itself to competition from abroad. But relations with trading partners have been strained over China's huge trade surplus and the piracy of goods; the former has led to demands for Beijing to raise the value of its currency, which would make Chinese goods more expensive for foreign buyers and, in theory, hold back exports.
Some Chinese fear that the rise of private enterprise and the demise of state-run industries carries heavy social costs such as unemployment and instability.
Moreover, the fast-growing economy has fuelled the demand for energy. China is the largest oil consumer after the US, and the world's biggest producer and consumer of coal. It spends billions of dollars in pursuit of foreign energy supplies. There has been a massive investment in hydro-power, including the $25bn Three Gorges Dam project.
9
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaChinaProfile Facts
Full name: People's Republic of China Population: 1.34 billion (UN, 2009) Capital: Beijing Largest city: Shanghai Area: 9.6 million sq km (3.7 million sq miles) Major language: Mandarin Chinese Major religions: Buddhism, Christianity, Islam, Taoism Life expectancy: 71 years (men), 75 years (women) (UN) Monetary unit: 1 Renminbi (yuan) (Y) = 10 jiao = 100 fen; Main exports: Manufactured goods, including textiles, garments,
electronics, arms GNI per capita: US $2,940 (World Bank, 2008) Internet domain: .cn International dialling code: +86
10
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China China – International Stage
Beijing Huaqi Information Digital Technology Co. Ltd (aigo) is a high-tech company headquartered in Beijing dedicated to the development of China's national IT industry.
aigo is a leading manufacturer of electronic products for consumer and professional markets. Its products include MP3 players, many other newly developed products like MP4 players and MP5 players.
Huaqi recorded consolidated annual sales of approximately 2 billion RMB last year and includes more than 1,900 employees worldwide, over 700 of whom are professional and qualified R&D staff.
Huaqi uses the marketing platform of Vodafone McLaren Mercedes to develop aigo's overseas market. aigo is Vodafone Mclaren Mercedes' first Chinese partner.
Patriot
11
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
11
China’s Gateway to US & Europe (EMEA)
中国通向美国和欧洲 (EMEA) 的通路
12
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
China – Ireland Cooperation中国与爱尔兰的合作
Software development; First Accredited ECDL courseware in Chinese; First Irish s/w company registered with the Copyriht Authority, Beijing,
China; First eLearning company in China aim at the Outsourcing market; First company with training course mapped onto SFIA – EU ICT Skills
framework; Cloud based eAssessment engine in Semantic eLearning platform; Saas / PaaS; Business member of ISIN – Irish Software Innovation Network by ISA,
IBEC, EI
Technology partner – Ireland (DERI-NUIG, DIT), France, HKSAR, China. Based in NovaUCD, UCD, Belfield, Dublin
13
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
China – Ireland Cooperation中国与爱尔兰的合作
– Neusoft - 东软– ATA Testing -ATA 测试– Linkage - 联创
Agreements signed during Trade mission to China, 2005.
2005 在贸易代表团到中国期间签署的协议。
14
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
China – Ireland Cooperation中国与爱尔兰的合作
15
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaAdvantages of Ireland
English speaking country (mother tongue) Advanced infrastructure and education World center of excellence for software
localisation– Non-English localisation and sales by native speakers
(10% of workforce is non-Irish with 25+ major languages)
Close to the marketplace Pro-business tax (12.5%), legal and government
policies Close business and family connections to USA
16
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China爱尔兰的优势
讲英语的国家 ( 母语 ) 高级基础设施和教育 世界卓越的软件地方化中心 接近市场 低营业税 (12.5%) ,法定的政府政策 与美国的接近贸易和家庭联系
17
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaUnderstanding Chinese Business Culture and Etiquette
The Chinese business practice is vastly different from the Western method that most of us may be used to. Of course, with the Chinese economy opening up, China's joining of WTO and the Olympics in 2008, many Chinese business practice are now beginning to align with more conventional methods.
However, China will always have their own unique business culture and etiquette, given their unique history and background.
18
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Understanding Chinese Business Culture and Etiquette
Chinese business contacts are mostly referrals However, it is common today for cold calls and direct contacts, given the availability
of the internet and the competitive nature of Chinese businesses. Business Relationship in China
Chinese business relationship inevitably becomes a social relationship after a while.
Seniority is important in ChinaSeniority is very important to the Chinese especially if you are dealing with a State owned or government body. Instead of addressing the other party as Mr. or Mrs. so and so, it is always appropriate to address the other party by his designation (i.e Chairman So and So, Director So and So or Manager So and So)
When giving out name cards or brochures, make sure you start with the most senior person before moving down the line. When giving out a name card or receiving one, ensure that you are stretching out with both hands with the card. Remember to face the card you are giving out in a manner such that the receiving party gets it facing him correctly.
19
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaUnderstanding Chinese Business Culture and Etiquette
Giving Face or Gei MianZiGiving face (aka giving due respect) is a very important concept in China. You must give the appropriate respect according to rank and seniority.
Gifts and PresentsUnlike earlier days when China was very poor, gifts, especially of Western origin was especially appreciated. Today, China produces and imports almost anything imaginable and gifts are no longer a novelty.
However, gifts are always appreciated and especially in the smaller cities or towns, will continue to play an important part in your business relationship.
Lunch/Dinner in ChinaThere is no business talk in China without at least one trip to a restaurant. Sometimes, a trip is made to the restaurant even before any business discussion take place! Inevitably, the restaurant will always be a grand one and you are likely to be hosted in a private room.
There is an elaborate seating arrangement for a Chinese business meal. There are fixed seating positions for the host and the guest and then they are seated again according to seniority. This is a very important aspect of a formal dinner and it is important that you follow the rules accordingly.
20
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaUnderstanding Chinese Business Culture and Etiquette
Drinking with the ChineseThe Chinese are big drinkers especially in Northern and Western China. It does not matter if it is lunch or dinner; as long as a meal is being hosted, there will be alcohol.
Chinese wine is the favorite, followed by red wine and beer. Chinese wine is more like fuel than liquor, having a alcohol concentration as high as 60% or MORE! No matter how good a drinker you may think of yourself, never, ever challenge a Chinese into a drinking contest. They will win, hands down!
It is often seen as rude not to drink with the Chinese in a formal dinner.
After Dinner Entertainment in ChinaFormal business dinner normally drags for quite sometime as there will be much social talk, some karaoke, and drinking contests. Most of the time, everyone is too drunk to indulge in further entertainment after a dinner. In addition, if you are just new to this partnership, you are unlikely to be invited to further after dinner entertainment.
However, once you are familiar with them, you may be invited to a Karaoke, or a Night Club, or a Suana. Do note that if they are the host for the night, all bills will be picked up by them for the night, including all entertainment. It is impolite to fight for the bill or worst, split the bills.
21
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Understanding Chinese Business Culture and Etiquette
Controversial Issues in China
There are some taboo areas in social conversations with the Chinese. Try to avoid these conversational topics as much as possible:
1. You must not mention that Taiwan is an independent state or a country.2. You must NEVER praise the Japanese or be seen to be good buddies with them.3. You can condemn Chairman Mao Tse Tung but avoid criticizing Deng Hsiao Ping.4. You must not praise Shanghai in front of natives of Beijing and similarly vice versa.
However, the younger generation, especially those educated overseas, the ‘old’ traditions is not as important as for the older generation, but respect is.
22
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Cultural Differences - Potential for Major Problems
West – Expressionist
– Chinese – Listen & learn
West – straight to the point
– Chinese – hidden agendas
West & Chinese – explore each others market
To cooperate – find a win + win
23
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Cultural Differences - Potential for Major Problems
Western companies assume creativity
– Do not specify requirements in detail Eastern companies require detailed instructions Major potential for mistakes!
24
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaChinese LanguageStandard Mandarin is officially known
in mainland China, Hong Kong and Macau as Putonghua (simplified Chinese: 普通话 ; traditional Chinese: 普通話 ; pinyin: Pǔtōnghuà; literally "common speech").
in Taiwan as Guoyu, and unofficially in Hong Kong as Gwok Yu (simplified Chinese: 国语 ; traditional Chinese: 國語 ; Mandarin Pinyin:Guóyǔ; Jyutping: gwok3 jyu5; literally "national language").
in Malaysia and Singapore as Huayu (simplified Chinese: 华语 ; traditional Chinese: 華語 ; pinyin: Huáyǔ; literally "Chinese (in a cultural sense) language").
25
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaChinese Language
口 = mouth官 = official
口 + 口 = 官
An official have TWO ‘mouths’,a well known Chinese saying
26
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaChinese Language
27
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaChinese Language
www.chinpass.com
Learn to speak Chinese in 72 hours!Play virtual game to learn
28
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China软件 Software
http://www.most.gov.cn/eng/
http://www.miit.gov.cn/
Government bodies – Technology, software industry
29
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China软件 Software
Government bodies – Technology, software industry
Ministry of Industry and Information Technology (simplified Chinese: 工业和信息化部 ; traditional Chinese: 工業和信息化部 ), established in March 2008, is the state agency of the People's Republic of China responsible for regulation and development of the postal service, Internet, wireless, broadcasting, communications, production of electronic and information goods, software industry and the promotion of the national knowledge economy.
The Ministry of Industry and Information Technology is NOT responsible for the regulation of content for the media industry.
30
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China软件 Software
http://english.cas.cn//
http://www.cae.cn/en/
http://www.csia.org.cn
31
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Related bodies in HKSAR软件 Software
http://www.cyberport.hk
http://www.ogcio.gov.hk/eng/about/ewelcome.htm
http://www.hkstp.org
32
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China 软件 Chinese Software Growth China's software industry grew at a compound annual growth rate of more than
39% over the period from 2001 to 2007 to reach RMB 506 billion and is further anticipated to grow at a CAGR of nearly 22% through 2012.
Rapid growth in IT spending among various industrial segments, including government, banking and manufacturing are likely to propel the domestic software industry in near future.
The ongoing large-scale endeavors for 3G deployments are expected to fuel growth in the demand for 3G telecom software across various application platforms.
Expanding broadband infrastructure with increased Internet penetration among Small and Medium Businesses (SMBs) will help the SaaS market to grow at a CAGR of approx 44% during 2008-2012.
The software outsourcing market is anticipated to grow at a CAGR of nearly 34% from 2008 to 2012.
The current perception of lack of required talent in coming few years is urging the foreign IT training and education centers to expand into China's IT education market.
Also, China is known as one of the leading countries in software development in world.
33
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China 软件 Top Chinese Software Companies
In 2008 there were 984 software companies that achieved 100 million RMB or above in revenues.
Beyondsoft CDC Software Chinasoft International Ltd. hiSoft Technology International Integrated Solutions Limited Integrated Solutions Limited (ISL) Kingdee International Software Group Co. Ltd Neusoft UFIDA Software Co. Ltd VanceInfo Technologies Inc.
34
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China 软件 Top Chinese Software Companies
Sourcing The exports are mainly driven by the software business given by Japan. Over
60% of Chinese exports are taken up by Japan, as there are a good number of Chinese developers who develop software in Japanese.
Linux It is predicted that in China, Linux market (both server and client) will grow with
an annual rate of 34 %. The client-side share growth will be comparatively faster. Enterprise software The Enterprise software market including ERP (Enterprise Resource Planning),
SCM (Supply chain Management), EAM (Enterprise Asset Management), CRM (Customer Relationship Management) and financial software is growing rapidly. The ERP software is available from UFIDA Software, Kingdee, SAP, etc.
Are you in the CLOUD !!!
35
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaGet it right - Copyright!
INTELLECTUAL-PROPERTY TRANSFER?
BUT, China, notorious as a hub of software piracy, has been steadily cleaning up its act. In 2004, 90% of the software used in China was pirated … By 2008, according to the most recent statistics available, that piracy rate had dropped to 80%. Bloomberg Business week – 3,2010
"China's increasing efforts to implement policies to promote 'indigenous innovation' that discriminate against foreign firms and seek to compel them to transfer IP rights to Chinese ownership.“
Beijing imposed a Dec. 10, 2009, deadline for companies in software, telecom, energy-efficient products, and three other sectors to apply for placement on a government procurement list of preferred products. To get on the list, companies need products with intellectual property developed, owned, and trademarked in China.
36
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaCase Study
1. Delivery of a training service to China: Argreement signed, June, 2007, with regional office of MII. Appointed a local partner – Microsoft training in region Local MII office is the operator. Detail of Agreement not all deliver ! From payment terms to local
partner’s benefits.
2. Renewable Engergy. Irish Developer secured project finance via trade finance. Is it the right
way to do business ? Major Chinese Wind energy turbine manufactere acquired Dutch Tech
Co. But not seeing eye-2-eye ? Developing three wind farms in Ireland – over complcated with local
detail.
37
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaGet It Right!
Know your client. Know your client’s client ! – government ? What is the value proposition? Where the commercial benefits are? Who & when financial transaction is conducted ? Make sure you have initial funding requirements
+20% ! Brand your product / service, make it sexy !
38
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaGet It Right!
Local employees V partner. Travel & visit your clients – Cost, in time & € ! Micromanagement – COST $$$ Try Agile ? Try HKSAR – Hong Kong Special Adm Region. China & Chinese Co is ready and able to invest. Are
you ready to sell ?
39
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaGet It Right! Culture
•Build relations•Traditions•Respect each others culture•‘Face’ in VERY important•Team work•Leadership
In China, one single most import aspect:-
联系 ! [guānxì] - Connections, networks
-- Mid Autum’s festival, 30-Sept, 2012.-- China National Day, 1-October.
40
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaMr Kraken Yu FIAP BSc MSc
Ireland HK Business ForumDublin Chamber of [email protected]
THANK YOU !谢谢!
Cornerstone Research Intl,NovaUCD, UCD,Belfield, Dublin 4www.eassess.org [email protected]
•Mentor, Enterprise Ireland•ex-Director, China,Asia Trade Forum,Irish Exporters Association,Dublin.
41
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Michael Shelly
Operations Director, PM Group
Central & Eastern Europe (CEE), Russia, Middle East & North Africa (MENA) and Asia
42
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaPM Group in China
43
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaOverview of PM Group
An integrated A&E Design and Project Management firm
1,750 people - 25 0ffices & 30 countries
Gross Revenue > €200M
Sectors: Life Sciences, Food/Nutritionals, Advanced Technology, Healthcare, Education, Energy & Environmental, Infrastructure
Full Service Company
− Architecture & Engineering Design
− Permitting & Environmental Consulting
− Procurement & Contract Administration
− Project & Construction Management
− Commissioning & Qualification
− Consultancy – Environmental & Sustainability
Established 1973 – Private Company – Employee Owned
44
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Our Clients……Pharmaceutical and BioPharmaceutical
45
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Advanced Manufacturing
Our Clients….
Food, Nutrition & Consumer Products
46
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Janssen,Belgium
Genzyme, Belgium, USA & China
Sanofi-Aventis, Paris
Merck, Ireland
Intas, IndiaGSK Bio, Belgium
CentocorIreland
Biopharma
47
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
MARS Wrigley, China
Pfizer Wyeth Nutritionals, Suzhou, China
Inbev, UK
Coca Cola, Ireland
Pfizer Wyeth, Singapore
Almarai, Saudi Arabia
Cadbury, Poland
Food/Nutritionals & Beverage
48
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Microsoft Data Centre, Ireland
Intel, Ireland
Dell, Poland
Tyndall, Ireland
National Bank of Abu DhabiData Centre
Advanced Technology
IBM, Ireland
Tyndall, Ireland
49
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaGroup Strategy Since 2005
Reduce dependency on Ireland
Develop an International ‘footprint’
Follow our MNC clients wherever they are investing
Focus on our Life Sciences & Food Sector clients in Ireland, UK, WE, CEE, Singapore, China, India and the USA
Focus on Healthcare, Education, Science & Technology, R&D, Transportation in Ireland, UK, MENA
Expand our International Consultancy Division into Environmental, Nature Resources & Institutional Strengthening projects in MENA, Central Asia & ASEAN
50
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
PM Group in Asia Today – Office & Project Locations
Singapore
Bangalore
Shanghai
Chennai
Hyderabad Manila
Ahmedabad
Changshu
Pudong
Guangzhou
Tamil Naidu
Mumbai
Hangzhou
Gujurat
Punjab
MaharashtraBhubaneshwar
PuneGoa
ThiruvananthapuramCoimbatore
New Delhi
Andhra Pradesh
Suzhou
Beijing
Uzbekistan
Azerbaijan
Georgia
Hanoi
Indonesia
Japan
Malaysia
Afghanistan
Anhui
51
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaPM Group’s Business Development in Asia
1998/2001 PM entered and exited Singapore as business model didn’t work
2006 Re-entered Singapore working out of Alliance Partners offices: M+W Zander
2007 Commenced working in China on Wyeth’s Infant Nutritional plant in Suzhou using M+W Zanders’s Shanghai
offices
2008 PM moved into own office in Singapore Commenced working in India with local Alliance Partners: VA Architects (VA)
2009 Signed formal MoU with Venkataramanan Associates (VA), Bangalore
2010 Acquired 50% stake in VA’s Bangalore Engineering company – 50 people Application made for China WFOE License and office leased in Shanghai
2011 Opening of own office in Shanghai in Feb 2011
2012 Acquired remaining 50% stake in India business to make it 100% PM Group company and moved to new larger
office in Bangalore
52
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Pfizer (Wyeth) Nutritionals, Suzhou, China | Nutritionals Facility
Plant Area: Plant Area: 50,000 sqm greenfield project
Cost: US$300MCost: US$300M
Scope of services:Scope of services:• Full process design, project & construction management services• 2 new dryers & evaporator trains• 2 wet mixing lines, can and pouch fillers• ASRS warehouse
Status: Status: Completed in 2010
53
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Novartis, Changshu, China | Novartis Chemical API Facility
Site Area:Site Area: 229,000 sqm
Scope of services:Scope of services:•Commissioning & Qualification
Status: Status: Completed in 2010
54
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Mead Johnson, Guangzhou, China | R&D Centre
Scope of services:Scope of services:• EPCM / C&Q• Concept design and detailed design phases
Status: In progressStatus: In progress
55
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
MARS Wrigley, Guangzhou, China | Greenfield Confectionery Facility
Plant Area: Plant Area: 46,000 sqm greenfield project
Scope of services:Scope of services:• Concept, Detailed Design & Procurement
56
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaSetting up a Business in China
Allow 6 – 8 months at least, probably longer
Identify premises and enter appropriate lease
Register company name with Ministry for Industry & Commerce
Register WFOE (Wholly Foreign Owned Enterprise) with relevant City Commerce Committee – must specify scope of business
Business Licence – Ministry for Industry & Commerce
Design Licence – Ministry of Construction
Enterprise Registration – Technical & Quality Supervision Bureau (Design)
Tax Registration – Relevant City Tax Office
SAFE Tax Registration – State Administration of Foreign Exchange
57
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaDoing Business in China – WFOE Route
Engage local professional advice
Develop a realistic business plan for WFOE licence submission
Ensure all your registrations are applied for in the correct sequence
Three months to submit all registrations – or start again!
Comply fully with the terms of your registration
Accept that China is more bureaucratic than Ireland – be patient
Get it right first time – do your homework in advance
Pay your Taxes!
58
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Doing Business in China – Sponsor Route
This is an alternative route – used by PM whilst applying for WFOE
M+W Zander are a Design & Build company and operate across Asia
PM and M+W Zander have an MoU for working across Asia
M+W Zander have all necessary Chinese Registrations and Licences
PM operate as specialist process design consultant to M+W Zander
M+W Zander sponsored PM and applied for our Work Permits
PM Personnel work in M+W Zander’s offices and sites
PM projects registered with tax authorities in relevant locations for compliance
59
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaChina - Ease of doing business
China is 91 out of 183 in The World Bank “Ease of Doing Business” Rankings
Low rankings
– Dealing with construction permits (179th)
– Starting a business (151st)
– Paying taxes (122nd)
– Getting Electricity (115th)
– Protecting Investors (97th)
China ranks 75th in the Transparency International “Corruption Perception Index” (Ireland ranks 19th)
60
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaTop 12 Pharma FDI Companies in China
Johnson & Johnson, USA
Pfizer (Wyeth), USA
Roche, Switzerland
GlaxoSmithKline, UK / Belgium
Novartis, Switzerland
Sanofi-Aventis, France / Germany
AstraZeneca, UK / Sweden / USA
Abbott Laboratories, USA
Merck & Co., USA
Bayer Healthcare, Germany
Eli Lilly, USA
Bristol-Myers Squibb, USA
61
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Top 12 Food & Beverage FDI Companies in China
Nestle, Switzerland
PepsiCo, USA
Kraft Foods, USA
Anheuser Bush InBev, Belgium
ADM, USA
Coca Cola, USA
MARS Wrigley, USA
Unilever, UK / Holland
Tyson Foods, USA
Cargill, USA
SAB Miller, USA
Danone, France
62
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
Having a business model that suits our clients’ needs
Investing properly in the business from the outset, giving our new venture the necessary momentum to be successful
Having the right management team on the ground in China
Achieving early wins with our MNC clients in Q1 and Q2 2011
Developing a good working relationship with alliance partners from the outset – including LDI’s (Local Design Institutes)
Knowing our weaknesses – ensuring that we do not overstretch ourselves and that we deliver on our commitments to our clients
Critical Success Factors for PM Group
63
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaKey Lessons
Be clear on why you are setting up in China and your strategy for success
It is a very, very competitive environment – be clear about your USP and if there is a market for it
Labour costs have risen to EU levels for very good locals, so hire cautiously and invest heavily in retention and career development
Language is an issue. You will need people you can trust with good language skills
The bureaucracy is a lot more than we are used to. You must learn to work within the system
64
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaThe Cultural Difference
The Boss
Me
Contact
Thinking
Problem ahead
Anger
West Chinaversus
65
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
ChinaIn Conclusion
There is lots of opportunity for Irish companies in a global market and particularly so in China and in Asia generally
Prepare well and learn from anyone you can
Do your homework and set clear targets
Get good local legal and financial advice
Utilise the support of Enterprise Ireland and the Irish Embassy
Allow realistic timescales to achieve success
66
Building Bridges to
China
28 September 2012 - Chester Beatty Library
Building Bridges to
China
www.pmgroup-global.com