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Desmond Wang is a consultant of Starmass International. Starmass is a full-service marketing research consulting firm in China. Its main service is to assist overseas companies enter the Chinese market from China market research, competitor study, China market entry strategy till export to China.
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Tips on Avoiding Representative Office Set Up Problems in ChinaA Chinese Representative Office (RO) may be the easiest and the cheapest way to establish your firm’s presence in China. However there are some traps which you should be aware of before and after the RO’s set up. Procedures to Set Up a Wholly Owned Foreign Enterprise (wfoe) in ChinaWholly Owned Foreign Enterprises (WFOEs) in China is increasingly getting popular with foreign international companies due to the increased business flexibility as compared to a Representative Office. WFOEs negate the need for a Chinese partner and do not need to a large sum of registered capital to fund and is suitable for overseas firms who wish to manufacture, process or assemble their products in China. Selecting the Right Chinese Distribution Partners for China MarketOne of the fastest and less risky ways to enter the China market is to leverage on Chinese distributors to sell your products in China. However, your market success will be highly dependent on the distributor to do the right things right. Understanding the Procedures and Costs to Set Up a Representative Office in ChinaSetting up a representative office (RO) in China seems to have a lot of paperwork and bureaucracy involved. Therefore, it is of most importance that foreign enterprises have an overview of the various approval and registration steps in order to facilitate a timely market entry into China. The entire process may take 3-5 months time to complete. China Indeed not Only Benefits From Rising Yuan, But Also Suffers From itFaced with both external and domestic pressures, China changed its exchange rate policy in 2005 from a single fixed peg to the US to a basket of currencies, to allow the Yuan to rise with market changes and till now it has risen above 15% against the US dollars. Some say rising Chinese Yuan is making China loses it competitive advantage as an exporting country. China’s Internet WorldChina with an Internet user base of 218 million has surpassed United States as the world’s largest Internet population, generating much hype about a promising e-commerce scene with increased entrepreneurial opportunities. It is estimated by the end of 2008, China’s internet population will hit 280 million. Tips to Set Up a Representative Office in ChinaAfter your first study visit to China, you may realize that doing business in China requires a local presence of your firm to facilitate business communications, or you may wish to further assess a better understanding of the size and potential of the China market before investing committed resources. Understanding Chinese Tier Cities for BusinessTo do business in China, first of all, you need to under how the Chinese cities are being developed collectively. Knowing this will allow you to position your business in a more favourable position for your market entry strategy into China. Tips to Prepare for Your First Chinese NegotiationYou are set to enter the Chinese market, are done with your market research and now is the time to meet your potential Chinese business partners. However, before meeting them, you should familiarize yourself with some negotiation tactics and knowledge to secure yourself a higher chance of success.
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