The Chinese Corner

Goal:  Salome Hernandez is currently living in Shanghai and hopes to be able to answer some of the questions the members of the Women’s Business Center might have on doing business in China or business with China.  We would prefer to respond to questions the readers might have on China and hope this short introduction might inspire some interest.  

China the Oriental Jewel:  For many China is the mysterious oriental beauty calling to many westerners with the possibility of a market of more than a billion potential buyers for their products; or a candy store where you can purchase any sweet thing you want.   It is the most populous nation in the world, a huge potential market, the globe’s largest producer, and a major trading partner for the U.S. (with the positive and negative aspects). 

Is China the Answer?:  As there are people talking about a recession and the need to tighten the belt, it is perhaps at this time that some businesses find it more essential to look to China.   Going straight to the factory for wholesale orders could mean savings.    Entrepreneurs realize that they can buy a product more cheaply, thus saving their budget.   They can then sell more cheaply and become more competitive and have the ability to pass savings along to the customer.   Or, they can make a larger profit. There are various ways of going about this.  But we must always remember what our mother told us, protect your investment; practice safe business, don’t do anything I wouldn’t do.  

Big Internationals Already In:  Major companies did not waste time entering the China market in the hope of capturing a foothold for their goods or to acquire Chinese products for export to the U.S. and other countries.   Direct foreign investment in China grew by leaps and bounds over the last three decades, although it dropped slightly in 2006 to about $69.5 billion.  Other large U.S. companies went in early to look for the products they wanted.   Some moved their production operations to China.  The larger companies have full staffs including the CEOs, lawyers, HR officers, and many others.  Smaller companies could do with help to manage their needs.   There are more and more Chinese that speak English so it has become easier.    

China Legal Reaction:  In 1979 China responded to this economic activity with legislation.  The Chinese congress made an attempt to legislate foreign investors with The Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures. Soon there were other laws covering Chinese-Foreign Contractual Joint Ventures, and Wholly Foreign-Owned Enterprises.  Modifications and new laws continue to be made governing the establishment, operation, termination and liquidation of foreign-invested enterprises.  In 2000 entrance into the WTO required further revisions to make the regulations conform to international rules and other changes, including abolishment of obsolete laws and regulations, and will gradually revise the laws and regulations that are incompatible with the rules of the WTO.  In 2001 the Chinese-Foreign Equity Joint Ventures received significant revision.

Questions:  If you want more information on the investment laws, finding an out-sourcing agent, importing, exporting, pass them along:  miklosc@abacus5.com or whatyouwantchina@yahoo.com

Dr. Salome Hernandez has more than a quarter of a century of experience as a diplomat for the U.S.  She recently left the State Department to start a consulting company in Shanghai, China after living and working six years in that city as well as Guangzhou, and Taibei.  Currently she has gained practical business experience supporting the PR section of an out-sourcing company in Shanghai.   As a diplomat she also served in Honduras, Dominican Republic, Mexico, Pakistan, Argentina, and Venezuela.  She understands foreign cultures and is completely bi-lingual in Spanish, conversant in Mandarin, and understands several other romance languages.   Salome received a Ph.D. from the University of New Mexico.    

Miklos Campuzano brings a decade of Chinese experience to the team.  He founded his own line of clothing, Illogical Gravity-street wear.  With ILG he works/ed in all aspects of the production beginning with the design, coordinating the production with Chinese factories, and ultimately distribution.   He also worked for a U.S. company specializing in out-sourcing of metals and polymers.  For specialized metal or polymers, he coordinates with Chinese experts with university degrees.  Currently he also uses his experience to help clients from around the world (U.S., Latin America, and Africa) interested in acquiring products directly from Chinese factories or learning more about doing business in China.  While wholesale orders are required, he willingly works to help small and medium size businesses.  His bilingual skill in Mandarin is indispensable in coordinating for clients and he has learned some Shanghai and other Chinese languages.