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There are a multitude of trade and investment opportunities for
exporters in the China market. Some of the major sectors currently
experiencing rapid growth are: processed food and beverages, gambling,
transport, IT and telecommunications, minerals and energy, environment
protection, building construction products and services. Three of
the major growth industries though are the exporting of education,
processed food and wine products.
Education
The foreign education sector in China is split in two - students
studying abroad and foreign education service providers establishing
a presence in Shanghai. The type of students interested in Australia
includes those who desire pure language study and those who wish
to study university degrees right through to post-graduate/MBA studies
etc.
As the cost of overseas study remains high, pursuing qualifications
through foreign accredited institutions in China has become more
practical and more popular. Course delivery can take two forms.
One is the foreign school catering exclusively to expatriates, which
can be wholly foreign owned and the investor need not be an education
entity. The other is a co-operative arrangement or twinning with
a Chinese institution where local students are the target markets.
These schools are encouraged to provide vocational education. Foreign
investors must have a Chinese partner who can lodge an application
with the local education authorities for approval.
Processed Food
As Chinese become more prosperous, demand for more sophisticated
products, with a greater emphasis on quality, convenience and freshness
continues to grow. This means that considerable unsatisfied demand
for elaborately processed foods exists.
There has always been a stable market for imported foods in China,
especially in respect to hotels, bars and western style restaurants.
Increasingly, Chinese consumers themselves are becoming to lay great
stress on brand and brand loyalty than before. This means that companies
with a strong international brand and aggressive marketing strategies
continue to hold large market shares. Foreign companies that have
been given permission by the Chinese government to set up supermarket
chains include Yaohan, Wellcome, Parkson, Park 'N Shop, Careful,
Pricemart and CHC. These companies are setting up supermarkets in
a limited number of locations. When China enters the WTO (maybe
sometime in 2000), it is hoped that official policies on foreign
supermarket operation in China will be less regulated.
Wine
Wine is especially popular in the large cities of China (Beijing,
Shanghai and Guangzhou) and has great potential given the increasing
disposable income of local people, the health benefits of drinking
wine and the government campaign against grain-based alcoholic drinks.
However, many Chinese have little knowledge of table wine, and few
people can differentiate quality and appreciate the taste. With
this in mind, and excellent promotional tool could be wine appreciation
and information courses to educate food and beverage managers, restaurant
owners and waiters. This would also attract high-income earners
and may ultimately stimulate the consumption of quality wine.
The Chinese wine market is price sensitive and consequently locally
manufactured wine holds the largest market share. French companies
are active in setting up joint venture either growing grapes and
manufacturing wine or bottling bulk-imported wine. Better quality
wine is limited to hotels and restaurants and consumed mostly by
Western diners. To successfully sell wine in China, local bottling
of bulk-imported wine is considered the most economical and practical
way to supply the local market with a competitively priced product.
Business
Etiquette in China
Greetings
Address a person using his or her family name only,
such as Mr. Chen or Ms. Hsu. The Chinese family name comes first
and is usually one syllable. A one or a two-syllable given name
follows a family name. For example, in the case of Teng Peinian,
Teng is the family name and Peinian is the given name. In some instances,
Westernized Chinese might reverse their names when visiting and
sending correspondence abroad. Therefore, it is always a good idea
to ask a native speaker which name is the family name.
For business purposes, it is traditionally acceptable
to call a Chinese person by the surname, together with a title,
such as "Director Wang" or "Chairman Li." Avoid
using someone's given name unless you have known him or her for
a long period of time. Formality is a sign of respect, and it is
advisable to clarify how you will address someone very early in
a relationship, generally during your first meeting.
Do not try to become too friendly too soon, and do
not insist that your Chinese counterparts address you by your given
name. The Western pattern of quick informality should be resisted.
The Chinese way of greeting is a nod or slight bow.
However, when interacting with Westerners, Chinese usually shake
hands. Bear in mind that a soft handshake and a lack of eye contact
do not necessarily indicate timidity. It only implies that the person
is not accustomed to the firm handshakes commonly used in the West.
Business Meetings
In China, it is assumed that the first person that
enters the room is the head of the group. Westerners should observe
this convention so as not to confuse the Chinese. Important guests
are usually escorted to their seats. If the meeting room has a large
central table, the principal guest is likely to be seated directly
opposite the principal host.
When exchanging business cards, hold out your card
using both hands with the writing facing the recipient. Cards should
always be exchanged individually (one-on-one). Never toss or "deal"
your business card across the table, as this is considered extremely
rude. Receive a business card with both hands and scan it immediately
for vital information. Then lay the card in front of you on the
table. It is demeaning to put someone's card directly into your
pocket without looking at it first.
Meetings begin with small talk. Resist the temptation
to get down to business right away. Also, avoid telling Western-style
jokes, because jokes sometimes do not translate across cultures
and can cause confusion or hurt feelings.
Social Events
- At a formal banquet, be prepared to give a short, friendly
speech in response to the host's speech.
- When inviting Taiwanese to a party, serve a "real"
meal rather than snacks and drinks.
- When invited for dinner, it is polite to sample every dish served.
Your host may serve some food for you, and it is nice to reciprocate
if you feel comfortable doing so.
- Always leave something on your plate at the end of the meal
or your host might think that you are still hungry.
Gift Giving
If is appropriate to bring a gift, particularly something representative
of your town or region, to a business meeting or social event. Gifts
indicate that you are interested in building a relationship. A gift
should always be wrapped, but avoid plain black or white paper because
these are the colors of mourning. Present the gift with both hands
as a sign of courtesy and always mention that this is only a small
token of appreciation. Do not expect your gift to be opened in your
presence. This indicates that it is the thought that counts more
than the material value.
Never give a clock, handkerchief, umbrella or white flowers, specifically
chrysanthemums, as a gift, as all of these signify tears and/or
death. Never give sharp objects such as knives or scissors as they
would signify the cutting of a relationship. Lucky numbers are 6
and 8 (especially in a series, such as 66 or 888). An unlucky number
is 4.
Survival Tips
- Bring a large supply of business cards. You may meet many more
people than anticipated.
- Keep in mind that in China, and virtually all other countries,
that 3/6/00 means June 3, 2000. When sending correspondence, avoid
confusion by writing your date in full.
- As a health precaution, it is advisable for international visitors
to drink bottled water, even in hotels and restaurants.
- Bring basic cold and anti-diarrhea medicines and your own prescription
drugs.
Avoid talking politics or religion. Good topics: Chinese food,
sports or places one should visit.
- If a Chinese person gives you a compliment, it is polite to
deny it graciously. Modesty is highly valued in China.
- The Chinese point at objects with an open hand instead of the
index finger. Beckoning to someone is done with a palm facing
down. Avoid beckoning with your index finger facing up.
- Do not try too hard to "go Chinese." Chinese do not
expect you to know all of their etiquette, and they make allowances
for foreigners. Keep the above guidelines in mind, but above all,
be yourself.
- Do learn a few words of Chinese. This shows an interest in your
host's language and culture. It also is a very good icebreaker.
Useful Chinese Expressions
| Hello |
ni hao |
| Hello (honorific) |
nin hao |
| Thank you |
xiexie |
| Cheers (toast) |
ganbei |
| Goodbye |
zaijian |
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