Negotiating with Chinese Business Partners

Negotiating is an integral part of a cooperation between parties in international trade – it allows to tailor the terms of transactions to individual needs. However, Western and Chinese negotiating styles differ substantially. Analyzing such differences and thorough preparation before the meeting will work to your advantage. How to be successful at negotiating with Chinese business partners?

Negotiating with Chinese business partners
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Dictionary of Terms – import from China

When doing business with China or generally engaging in international trade, you can often encounter various terms and acronyms. You need to be familiar with them when you make transactions, close business deals, and complete the formalities. We compiled a dictionary of terms for all the businesspeople who undertake to import goods from China. The listed terms are commonly used by entrepreneurs around the world.

Dictionary of terms
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Export to China – types of business presence in China

Registering a company in China is still a relatively complicated procedure, despite the fact that the People’s Republic of China authorities are struggling to make those procedures easier for foreign businessmen. In China, there are four basic types of business presence. We need to keep in mind that every province has its own distinctive features which should be analyzed before choosing the place for our business. Every potential investor should evaluate his time and financial capabilities before making such decisions. As the opening business in China may take a lot of time, we present some basic modes of operation accompanied with the short description. While registering the company in China, we should seek help of the professional companies and institutions which already have the experience in this field; they will help us to choose the most suitable type of business presence.

Representantive Offices, RO

The main advantage of this type of business presence is the low cost, this type is the most popular among the foreign entrepreneurs. It enables them to obtain residence permits. There are several disadvantages though: ROs do not have legal personality, they cannot issue invoices, the personnel must be employed through the governmental agencies. This type is chosen mostly by companies which are performing market surveys or are overseeing the Chinese contracting party (ie. factory) while importing from China.

Types of Business Companies

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