Sourcing is simply another way of saying you want to have your product manufactured in China. There are a wide range of possible alternatives. These range from purchasing your product from a factory in China, to a joint venture, or to a Wholly Owned Foreign Enterprise. While we can be of assistance in selecting the one best suited for your business, let’s begin by examining the option most often selected by the small to medium sized company – purchasing product from a factory in China.
Regardless of the particular product for which you are seeking to develop an export market and selling your product into China, you need a carefully thought out strategy. Selling into China is not the same as selling in the United States. You need to do your homework and to understand the inherent limitations of the distribution systems in China.
The major U.S. based investment houses have their offices located in the major cities in China, such as Beijing and Shanghai. Due to the size of these firms and their basic orientation, their focus appears to be in developing investment opportunities with the larger, state owned corporations, or with larger private firms in need of major capital infusions.
As more fully discussed and explained in “Dr. China Speaks”, China and the western world, particularly the United States, have totally different legal traditions and historical experiences. While it is abundantly clear that China is moving rapidly to adopt and adapt to the international legal standards that govern business relationships, one cannot expect the same level of legal protection and a legal system comparable to that which exists in the United States.
In “Dr. China Speaks, Dr. Kupper has recounted only a few of numerous examples where foreign firms have unwittingly lost innumerable opportunities in China or been ill prepared for their ventures due to their lack of cultural awareness. In his thirty years of teaching at a leading University in California, there were probably not more than twelve students who enrolled in a course in Chinese history from the business school.
Consulting is a generic term covering a broad range of possible issues that one must consider before embarking on doing business in China. Depending on your needs and requirements, we are prepared to arrange meetings with our potential clients to discuss their individual situation and issues.