In this article we will discuss an interesting aspect of business often not much talked about and usually remains secondary to all the technical talks of profit and loss economics. Yes, we are talking about the appearance of the person here, which includes various factors such as cloths, manners, personality and so forth. One might be tempted to ask what has that to do with the technicalities of e-commerce and international trade or business talks of import/export and global sourcing, but it must be remembered that no matter whichever technology is used the basic human element does not disappear from the perspective, and all activities associated with e-commerce, international trade, import/export or global sourcing are present for the benefit of human beings and do not exist for themselves. So wherever people are involved, their outfit and appearance also takes a prime place in the scheme of things and more so in meetings involving decisions about import/export, global sourcing or other forms of international trade either through traditional or e-commerce technology. Since our main topic of discussion is related to China and its growing volumes of international trade, import/export and global sourcing through e-commerce, it would be appropriate at this stage to take a look at some of the appearance facts that each executive involved in e-commerce, international trade, import/export or global sourcing should follow at least to some extent.
Try to wear subtle and sober colours whenever going for business meeting associated to import/export or global sourcing deals. This is the practice in China and although one might be tempted to ask that in international trade involving e-commerce, the personal touch is not of prime importance, yet it must be noted that even for activities carried out over the internet such as import/export or global souring deals, personal interaction might result at a later stage wherein e-commerce and international trade partners meet each other to discuss and review their deals and business processes.
Formal dress is literally mandatory as casual jeans/shorts etc. are not acceptable to the Chinese people whether they are dealing with local traditional trade meetings or international trade via e-commerce and other activities like import/export and global sourcing. Contrary to the western concept of openness it is considered quite indecent in China if a man touches a woman in public and should be avoided wherever in doubt. Of course the society is becoming less conservative currently in the era of e-commerce, international trade, import/export and global sourcing yet the tinge of this cultural instinct does remain deep inside China.
American Business In China
Picture Beijing in the early 1990's: a strong visual presence of communism in the typical courtyard-style housing (12 families housed in a block built around a central yard), grey Mao suits everywhere, almost no neon advertising signs and only occasional cars and mini-vans on the streets. In those days there were two currencies: Yuan and FEC(Foreign Exchange Currency) available only to foreigners, with a lower exchange rate than Yuan (1$=8.9yuan, 1$=7.4FEC). Strong government control, exacerbated by the recent happenings on Tiananmen Square, meant that getting to know Chinese people was almost impossible - they were not allowed to enter hotels and so had no exposure to foreign goods and lifestyle, which were only available in hotels.
The mid-90's brought new perspectives and possibilities to China. Private ownership was booming, bringing changes in life style and rapid expansion overnight in the car industry, service industries, street advertising and real estate. A foreigner wanting to take advantage of the numerous opportunities of setting up a private business in China came up against a mountain of obstacles presented by Chinese law. The only way a foreigner was permitted to start a business was in partnership with a local person, who would have to have a major share of ownership and all legal rights. In order to apply, the name approval, acceptance from MOFTEC (the Ministry of Foreign Trade and Cooperation) and tons of other paperwork all had to be legally registered, which would take many months and was often dependant on how good guanxi (relationship building) your Chinese partner had with local authorities.
The beginning of the 21st Century brought further developments. The previously tedious business registration process could now be done by various consulting agencies, providing this service for a minimum sum in a much shorter time. The easiest way of setting up a company was to apply as a consultancy service, which term covered such a broad spectrum that it effectively allowed the individual to explore business opportunities according to the market growth. Three options became available:
-Full Chinese ownership for the investment of 100,000 yuan
-Joint venture with 51-49% ratio in favor of the Chinese partner for the same amount.
-Full foreign ownership (WOFE: Wholly Owned Foreign Enterprise) for $100,000
At this period China was still looking at limiting market growth to businesses with 'serious' investment, although services for setting up ones own business were much improved and once the business was up and running the only further legal obligation was to pay taxes.
The year 2005 brought in yet more changes and China continues to relax its need for control. Setting up a consulting company now takes only a few months. With a small amount of paperwork and a minimum of $10,000, you can own the business in China, as long as it is already registered abroad, with a Hong Kong bank account. The second step would be to hire an accountant (part-time if necessary) and open a mainland China bank account. For office space, you can run your business from home as long as the real estate management has a licence for such services or if you own the apartment. So, these days you are pretty much free to find your own way, use your own guanxi and explore the many opportunities in the land of dragons.
Both Dylan Sun & Dalida Turkovic are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Dylan Sun has sinced written about articles on various topics from Astrology, Organizational and Gardening. News.tootoo.com (http://news.tootoo.com/), which is the shortcut to China's industrical resource belonging to China's leading B2B Portal and Vertical Search Engine, tootoo.com.. Dylan Sun's top article generates over 90500 views. to your Favourites.
Dalida Turkovic has sinced written about articles on various topics from Organizational, Work Life Balance. Dalida Turkovic - Master Coach and Master NLP Practitioner has lived and worked in China since 1990. Please visit her business coaching website
