The rise of China poses a significant challenge to the existing, Western-dominated world economic order. The effectiveness of the Regional Comprehensive Economic Partnership (RCEP) is contingent on a smooth transition of the world’s economic center toward the Asia-Pacific Region. For Western investors, the vast market opportunities can be tempting. However, the lack of experience and knowledge of international management in China – a country with radically different business rules and cultural background – poses a substantial risk.
This book provides comprehensive insights into the fast-changing business world in China. Based on the authors’ theoretical knowledge and invaluable years of practical experience, it discusses the various options for doing business in China, with current examples that demonstrate how European SMEs can successfully position themselves between multinational companies and local competitors. It also highlights new opportunities arising from China’s international involvement (New Silk Road, RCEP) and addresses risk management for European SMEs operating in China. Moreover, it sheds light on how to form relationships of mutual trust between Chinese policymakers and their advisors/cooperation partners from abroad.
Readers with an interest in doing business in China will find this book particularly valuable.
Author(s): Tracy Dathe, Volker Müller, Marc Helmold
Series: Management for Professionals
Publisher: Springer
Year: 2023
Language: English
Pages: 237
City: Cham
Preface
Contents
About the Authors
List of Abbreviations
List of Figures
List of Tables
1: Introduction
2: General Information
2.1 Key Data
2.2 A Brief Introduction of the Chinese History
2.3 The Special Administrative Regions (SAR): Hong Kong and Macao
2.4 Taiwan
2.5 The Minorities
2.6 Religions
2.7 Exchange Rates and Inflation
References
3: The Enormous Pace of Infrastructural Development
3.1 Structural Change: From International Aid Recipient to a High-Tech Nation
3.2 Made in China 2025 (MIC25)
3.3 State Regulations and State-Owned Enterprises (SOEs)
3.4 Transport and Telecommunication
3.5 Innovation Policy
References
4: Internationalisation of China
4.1 Integration in Global Value Chain (GVC): Twenty Years of WTO
4.2 New Trends in China´s Opening-Up Policy
4.3 The New Silk Road
4.4 The RCEP Free-Trade Area
4.5 CPTPP and DEPA
References
5: Energy Supply
5.1 Energy Dependency and Energy Policies
5.2 Energy Consumption and Environmental Protection
5.2.1 Total Consumption
5.2.2 Energy Sources
5.2.3 Carbon Trade
5.3 Fossil Energy
5.3.1 Coal
5.3.2 Oil and Gas
5.4 Electricity and Renewable Energies
References
6: Market Opportunities
6.1 Overall Development of Chinese Economy
6.2 Foreign Trade
6.3 Consumer Market
6.3.1 Consumer Income and Consumption Expenditure
6.3.2 Retail Market: Market Size and Stability
References
7: Economic Hubs
7.1 Major Economic Zones
7.1.1 Yangtze River Delta
7.1.2 Pearl River Delta Economic Zone
7.1.3 Bohai Economic Rim
7.2 Special Economic Zones and Free-Trade Zones
7.3 The Guangdong-Hong Kong-Macao Greater Bay Area (GBA)
7.4 Case Study: A Bilateral Cooperation Attracting Foreign SME
7.4.1 Case Study: German Companies in Taicang
References
8: Labour Market and Education
8.1 Development of Qualified Workforce
8.2 Education in China
8.2.1 The Education System
8.2.2 Higher Education
8.2.3 Vocational Training
8.2.4 Studying Abroad
8.3 Minimum Wage
8.4 Recruitment Websites in China
References
9: Understanding the Chinese Culture
9.1 Culture Models in Cultural Research
9.2 VSM Model by Hofstede
9.2.1 Power Distance (pdi)
9.2.2 Individualism Vs. Collectivism (idv)
9.2.3 Masculinity Vs. Femininity (mas)
9.2.4 Uncertainty Avoidance (uai)
9.2.5 Long-Term Orientation (ltowvs)
9.2.6 Indulgence Vs. Restraint (ivr)
9.3 Cultural Dimensions According to E.T. Hall
9.3.1 Context Orientation
9.3.2 Monochronic Vs. Polychronic Understanding of Time
9.3.3 Understanding of Space
9.4 Cultural Diversity within China
9.5 Case Study: Finding the Right Sales Representative in Western China
References
10: General Business Environment
10.1 Legal System of China
10.2 FIE Business Registration
10.3 Foreign Exchange Control
10.4 Negotiations in China
10.5 关Guānxì (Connection), Miànzi (Face) and Business Dinner
References
11: Positioning in a Complex Market
11.1 Prosperity Gap Within China
11.2 Chinese and International Competitors
11.3 Niche Markets and Chances for International SMEs
11.4 Case Study: A German SME in the Chinese Medical Device Market
References
12: Marketing Strategy in China
12.1 Direct Approaches to Sales in China
12.2 Sales via Chinese Distributors
12.3 Control by a Representative Office
12.4 Subsidiaries
12.5 Servicing Goods and Trade in Service
12.6 Manufacture in China
References
13: Managing Global Supply Chain
13.1 Objectives of Supply Chain Management (SCM)
13.2 Global Supply Networks
13.3 Covid-19 Pandemic and Supply Chain Resilience
13.4 International Commercial Terms (Incoterms) 2020
13.5 Case Study: SHEIN´s Cross-Border Supply Chain
References
14: Service Industry in China
14.1 Industry Sectors
14.2 Trends in China´s Service Sector
14.3 Case Study: Healthcare and Senior Citizen Care
References
15: Sustainability Management
15.1 Corporate Social Responsibility (CSR)
15.2 Corporate Sustainability
15.3 SDG and ESG
15.4 ESG Practice in China
References
16: Risk Management
16.1 Theoretical Approach of Risk Management
16.2 China´s Resilience in Multiple Crises
16.3 EU-China Relationship
16.4 Special Consideration: Taiwan, Hong Kong and Macao
References
17: Institutional Supports for Commercial Activities
17.1 Organisations that Provide Assistance
17.1.1 Case Study: Consequences of Slow Decision-Making-A Factory for Infusion Solutions
17.1.2 International Organisations
17.1.3 Chambers of Commerce
17.1.4 Industry Associations
17.1.5 Regional Organisations
17.1.6 Sister Cities
17.1.7 Chinese Organisations
17.2 The Foreign Invested Industry´s Influence on Policymaking
17.3 Case Study: The European Union Chamber of Commerce in China
References
18: Outlook
