The Biggest Challenge of Doing Business in...
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in partnership with The Biggest Challenge of Doing Business in China Doing Business in China
Transcript of The Biggest Challenge of Doing Business in...
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The Biggest Challenge ofDoing Business in ChinaThe Biggest Challenge ofDoing Business in China
Introduction
Business in China 10 years ago:
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Introduction
Business in China today:
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Introduction
Business in China today:
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Introduction
Business in China today:
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Introduction
Business in China is changing
China is a very different place than it was 10 years ago.
From cheap manufacturing place, it is becoming a major consumermarket for hi-tech services and products.
Everyone wants now to be here to sell rather than to produce.
Business in China is changing
China is a very different place than it was 10 years ago.
From cheap manufacturing place, it is becoming a major consumermarket for hi-tech services and products.
Everyone wants now to be here to sell rather than to produce.
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The biggest challenge
Question: What is the biggest challenge for doing business inChina today?
30.00%39.00%
44.00%49.00%49.00%
83.00%
Legal certainty and observance of contractsMarket Information (e.g. sales market, labor market, sourcing)
Bureaucracy and administrative hurdlesEconomic situation / development
Currency and financial risks (e.g. appreciacion of RMB)Human resources-related challenges (e.g. availability of qualified talent)
Challenges of foreign companies doing business in China
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13.00%14.00%15.00%15.00%
19.00%20.00%
23.00%28.00%29.00%30.00%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%
Security provisions (e.g. visa / work permits, events)Barriers to trade (non-tariff)
Effects of foreign relations on business climateEnvironmental and health protection
Natural resources and energyInfrastructure and logistics
Misuse of institutionalized power / corruptionTax-related issues (e.g. corporate tax rates, export tax rebates)
Intellectual property rights protectionLegal certainty and observance of contracts
Source: EU SME Beijing Center
HR Challenges in China
What HR Challenges?
Legal Administrational Cultural
Legal Environment Recruitment Assertiveness and accountability
Labor Relations(unions) Employment Business etiquette
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Labor Relations(unions) Employment Business etiquetteFrequent Changes Turnover and retention Innovation and creativity
Termination &severance fees Loyalty
Hiring and Relocationof expat employees
This part you can outsource This is what you have to learn & earn(but we will help!)
What did Komatsu do?
Komatsu in China, 2010
In 2010 Komatsu, one of the world’s largest industrial equipmentmanufacturers decided to replace all of its managers at its 16subsidiaries in China with local hires by 2012.
Komatsu in China, 2012
A word of advice for those starting business in China
You are a successful Israeli company interested ingrowing your business in China.
To succeed, you must:
1) Have an HR expert who can understand the Westernmind and implement it on the Chinese ground.
2) Build a motivated Chinese team of managers to workfor you.
3) Act fast!!!
You are a successful Israeli company interested ingrowing your business in China.
To succeed, you must:
1) Have an HR expert who can understand the Westernmind and implement it on the Chinese ground.
2) Build a motivated Chinese team of managers to workfor you.
3) Act fast!!!
Technopro China – Relocation Jobs
HR ServicesRelocation Support- relocation & visa support for Israeli expertsassuming office in China
Recruitment- recruitment and headhunting service withtechnology focus
Employment services- we employ your employees in China on yourbehalf and take care of local payrolladministration
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Employment services- we employ your employees in China on yourbehalf and take care of local payrolladministration
Technical Staffing- short term solutions (when you need 30 Javadevelopers for 6 months)
Solution: EZ China– start your business in China without the need ofsetting up your own company
Technopro China
TechnoPro Staffing (TPS) is a Chinesesubsidiary of Japan’s largest technicaloutsourcing firm, “TechnoPro Group”.Since 2002 we help Japanese and Euro-American multinationalcompanies to be successful in China.
What is TechnoPro?
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Technopro Group of Companies
Technopro China
TechnoPro’s officesJapan80 OfficesChina
8 Offices
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