Jun012012

China’s Machine tool industry thriving

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We continue to hear reports that the machining industry in China continues to expand at a high rate and many are just as optimistic for the future . The velocity of recovery has been so good that many industry experts are seeing demand outpace supply. Several factors are playing into this strong growth.

The China automobile industry continues to thrive, increasing to 18.5 million cars sold in 2011. Being that almost half of all machined products go to feed the car industry, it therefore is fueling a lot of the growth in the machining industry. Additionally, China has injected over 600 Billion dollars into the economy after the recession that has added further to the surge into China’s machining industry. Further, there appears to be a transfer of capital allocation from other uncertain investment areas such as real estate into the manufacturing sector.

Finally, as the economic crisis is subsiding throughout the world, international orders are back on the rebound. Many shops report that orders from the USA and other western countries have not come back as strong as they were pre-recession, but they are still on the rise. However, according to Jeff Sprinkle with Precise Manufacturing, a CNC precision machining company in Fort Wayne, Indiana, the machine industry has rebounded well in the US as well. Sprinkle states that many customers that were once looking to China to reduce costs have chosen to keep their production in America due to the higher quality, better customer service, lower ordering requirements and shortened lead time. However, many reports from machining factories in China report that many US customers have brought their business back to China, just not at the levels seen before the economic crisis. However, growth from developing countries has increasing significantly, causing the overall international market to be a considerable reason for the thriving machining industry in China.

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Aug172010

How to Dress for Business in China

By admin | | Posted in China Business Customs and Etiquette, Chinese Culture, Doing Business in China, First Time Travelers, Traveling to China | Comments (0)

When you are getting ready for business travel to China for the first time, you may be unsure of a lot of things. One of the most important things you can do is to take special consideration when packing your clothes for the trip. Your attire will play a very important role in the success of your business when in China.

The first thing you should do is make sure that all of your clothes you bring are conservative. All clothing should be dark or neutral. Black, brown, and tans are all appropriate colors to wear on business travel to China. On the other hand, if you wear a bright red shirt or a bright red dress, you are going to find they may be offended.

As a woman from the United States or another country, dress shirts that reveal a little cleavage may be appropriate for a business meeting. In China, however, showing any cleavage at all during a business deal is often deemed as inappropriate. Therefore, it is essential that all of your necklines are kept high. You also need to make sure your high heels are not worn during any business, as well.

If you have been invited to a formal dinner when on business in China, men will find that an ordinary suit is the appropriate attire for such an occasion. Women, on the other hand, will have a few more options and may wear high heels and more brightly colored clothing at a formal party. However, to be safe and not take any chances of offending anyone, stick to the colors of white, tan, brown, or black when dressing for the occasion.

While many countries are more relaxed about the attire worn in business, China is not. Wearing a bright, fun tie with your suit may actually be deemed offensive. Before you plan your trip, take some time to learn a little about the culture and what to expect when you are in China. Doing this research can help you to have a more successful business trip and can actually show them just how much you respect them and their culture.

By admin | Posted in China Business Customs and Etiquette, Chinese Culture, Doing Business in China, First Time Travelers, Traveling to China | Comments (0)
Aug172010

Foreign Direct Investment & Bamboo

By admin | | Posted in Business News, Chinese Culture, Economic Outlook, Political News and Info | Comments (0)

Bamboo can grow 48 inches per night. It grows in China and Southeast Asia. How appropriate.

Like bamboo, China’s economy seems to sprout overnight. In 2009 alone, its gross GDP increased 8.7%, and 2010 promises similar gains. Much of these astronomical earnings are due to China’s sky-high inward foreign direct investment (FDI).

Foreign direct investment is the long-term economic participation of one country in another, usually through transfer of technology, joint ventures, stock market participation and foreign ownership of assets.

Originating with the 1979 Chinese Foreign Join Venture Law and spurred onwards by the subsequent ubiquitous economic zones, China’s inward FDI burgeoned from a total $19.6 billion to over $300 billion in less than a decade. It was ranked as the 4th highest FDI recipient in 2006, and in 2009, China raked in over $90 billion. FDI remains a big ingredient in China’s economic recipe.

But some investors doubt the stability of China’s exploding economy, and others voice concerns about China’s business practices.

China faces a shortage of skilled workers, such as engineers, doctors and scientists, but has initiatives to improve education and so remedy their deficiencies. Dr. Seamus Grimes says, “The state has become increasingly wary about its dependence on foreign technology.” This bodes ill for companies planning on an invite due to their technological expertise – if China has anything to say, they won’t need it.

Some businesses are wary of China’s authoritarian capitalism, with its cornucopia of licenses and permits. A survey from the American Chamber of Commerce indicates that many foreign-based businesses worry about the growing protectionism in China, as the behemoth plans on using its newfound expertise to become self-sufficient. Respondents worried most about inconsistently applied regulations.

But, as the PBG Economic Cooperation Forum says, China is still one of the best FDI destinations. Its growing infrastructure and logistics network encourage investment, and in their opinion, government regulation is supportive.

Of what are businesses afraid? Bamboo. Most bamboo only flowers every 60 to 120 years; the rest of the time, it remains sparse. Investors fear that, despite incredible growth, there will be nothing to reap.

By admin | Posted in Business News, Chinese Culture, Economic Outlook, Political News and Info | Comments (0)
Aug172010

What You Should Know Before Traveling to China on Business

By admin | | Posted in China Business Customs and Etiquette, Chinese Culture, Chinese Food, Doing Business in China, First Time Travelers, Traveling to China | Comments (0)

If you are planning on business travel to China, there are several things you will need to know before you get on your flight. Every country is different and, if you are not careful, you could easily offend someone without meaning to do so. In fact, you could blow your business deal before you even sit down.

One of the first things you should know is that the majority of businesses in China are closed between the hours of noon and two o’clock in the afternoon. If you plan on eating at a restaurant or doing business between these hours, your needs will not be accommodated during this time period. Along with this, you will always want to check the Chinese holidays before you travel, as most of them close on major holidays.

Another things to consider before you travel to China on business is how you plan to dress. Your attire is best kept to the more conservative style. This means no bright colors, no jeans or shorts for business meetings, and women should stick to high necklines. Along this same line of thought, women should also leave their high heels at home, unless they plan on attending a formal party.

When addressing those that you meet, it is customary to use formality. Mr., Miss, and Madam are all acceptable, but you will want to use the last name of the individual first. In other words, if you are introduced to Mr. Jung Ho, he would become Mr. Ho Jung. Of course, you must also remember that while in your home country, the terms of friend and comrade are acceptable to address someone, in China it may be considered rude.

When traveling to China on business, you will no doubt feel nervous. The most important thing is to be pleasant to all and to compliment them about the food and the actual atmosphere. Going to another country and complaining about long lines or traffic is going to be rude. This is their country and home. Instead, find something to compliment them on and you will find you fare much better.

By admin | Posted in China Business Customs and Etiquette, Chinese Culture, Chinese Food, Doing Business in China, First Time Travelers, Traveling to China | Comments (0)
Aug172010

Business Etiquette in China

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With the modernization of China beginning to spread outside of the primary cities, business ventures across the world are taking deliberate steps to increase their market share in China. As businesses choose to enter the Chinese market, some small gestures can ensure representatives act appropriately.

Begin a business conversation with small talk. The Chinese employ a system of guanxi, which refers to building connections and relationships before coming around to the business at hand. When a business makes a foothold in China, which locals they know and how well they know them will be crucial to sustaining success. Unlike some other regions of the world, it is unlikely that a deal will be signed and sealed during the first meeting.

Company representatives will need an abundance of business cards. Cards will be exchanged at the beginning of every meeting and between all of the people present. If possible, one side of the card should be in Chinese. When receiving a business card, use both hands and take the time to read it carefully.

Pauses in speaking are common by the Chinese. This is considered acceptable and as a sign of thought on their part. Avoid the use of slang terms and colloquialisms.

Never put a Chinese client on the spot. By the same token, never say “no” in exact terms. Decline in a less direct fashion. For business representatives used to direct and quick business protocol, it can be difficult to be patient. The Chinese will almost always be measured and take the time to consolidate their thoughts before answering.

These are only a few of the business customs in China. Company representatives should learn all of the local business etiquette before their visit and hire an experienced interpreter. By taking the time to acclimate to the business world in China, company representatives can ensure their visits will be productive and efficient. Like all markets, local customs and etiquette should be adhered to as much as possible to make the best first impression. The Chinese market offers incredible potential at this time, and should be offered accommodations and respect accordingly.

By admin | Posted in China Business Customs and Etiquette, Chinese Culture, First Time Travelers | Comments (0)