INTERNATIONAL TRADE


‘Businesses looking at China should do as much market research and planning as possible, using both desk research and visits to the market’


(CBBC), Foreign and Commonwealth Office’s (FCO) and the Enterprise Europe Network (EEN). China has what is officially termed ‘a socialist legal system with Chinese characteristics’ which means the legal system is based on both statutory law and custom, and you must identify whether the market is open to you and if restrictions apply. In some sectors it is possible to set up a 100% foreign-owned company. In others, entry is possible only through a local partner. Setting up a company in China


is a complex process requiring various approvals. You should seek professional advice early on due to the difficulties in altering business structure once a legal entity is incorporated. Foreign companies cannot legally employ Chinese staff unless the company is registered in China. It is recommended that companies consult local English-speaking lawyers to avoid costly mistakes in the legal process. It is possible to directly export to


China. However, due to the size of the market and language issues, companies looking at China may need to consider other options. Many companies use agents and


distributors who cover different regions and it can take time to find the right partners and establish relationships. If you are selling online, your Chinese website will need to be hosted within the Chinese government firewall and set to work with Chinese search engines such as Baidu. Franchising of brands continues


to grow in China. There are opportunities for UK brands as increasing numbers of China’s cities develop the relevant infrastructure and local governments encourage the creation of new businesses. China has a complex banking


system and restrictions apply to foreign companies. Foreign- invested entities (FIEs) need to establish at least two bank accounts: an RMB basic account and a foreign currency capital contribution account. UK companies can set up accounts in China through their own bank - assuming it has a presence in China - or through a Chinese bank.


If you are looking to do business in China, you can contact EEN on 0333 320 0333, email eeninfo@emc-dnl.co.uk or tweet @EEN_Midlands


The seven principles of effective global communications


When working in the global commercial environment, knowledge of the impact of cultural differences is key to international business success. Iwona Lebiedowicz (pictured), Director at PAB Languages Centre, explains why cultural awareness is so important when doing business overseas.


Having spent over ten years delivering cultural awareness training, consulting clients on effective communication with foreigners and managing diversity and communication within my own company, I developed a simple method: The Seven Principles of Effective Global Communications.


These principles are: C - Cultural awareness U - Understand expectations L - Listen to and observe T - Trust U - Use clear and precise language R - Respect your audience E - Evidence and evaluate


These principles are universal


and effective communication rules, applicable anywhere in the world and in all areas of business and life in general. I firmly believe strong company


culture and clear expectations, while at the same time respecting individual values, are key to successful international business. It’s about identifying and understanding the differences and similarities when it comes to beliefs, values and behaviours through which experience may be interpreted. Every business culture has


unique styles of etiquette and it becomes a bit more complicated when we are dealing with people from diverse cultural backgrounds.


‘Etiquette isn’t recognised as one uniform set of standards around the globe’


Having cultural awareness and knowing the right etiquette can help save time and money. As a general rule, exporters


should research and respect the culture and traditions of the country they wish to do business and adapt the golden rule of business etiquette - be open-minded, non- judgmental and flexible. The importance of cultural


differences cannot be underestimated. Culture impacts people's buying habits, how they respond to marketing messages, website pages or even colours. Etiquette isn’t recognised as one


uniform set of standards around the globe. For example, a hand gesture in one country may have an opposite meaning in another, or may have no meaning at all. Some cultures consider making direct eye contact aggressive, rude, or a show of disrespect however, in others, making eye contact is not only seen as appropriate but necessary for establishing yourself as a powerful business professional. Another good example is the


way different cultures approach time. In some cultures, punctuality is critical, schedules are set in concrete, agendas are fixed, and business meetings are rarely interrupted. But some cultures pay less emphasis on strict punctuality, are more likely to miss deadlines and tend to value loose scheduling as well as business meetings where several meetings-within-meetings may take place simultaneously. Having a good understanding of


the influence of cross-cultural differences in areas such as management, PR, advertising and negotiations will save time, money and embarrassments. The need for greater cross- cultural awareness is significant and, unsurprisingly, our cross- cultural seminars and workshops in business etiquette are more popular nowadays than ever.


business network November 2017 29


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72