Why Do Business In China? Chinese Elite Love Luxury Goods

Why do business with China? Because the wealthy class have more buying power than ever before

It has been a good year for China with an increase in the number of billionaires! They are the most populous country in the world but they still don’t have as many billionaires as the USA. Business opportunities in China must abound because according to Forbes the number of billionaires has almost doubled since last year.

We may not be billionaires, but we all know they love their toys! And it does seem that China’s wealthy class are doing just that – they appear to have their sights set on luxury aircraft. The regulations in regards to private planes are extremely rigorous in China and promises to be a bit of a challenge for even them. Although there are signs of them easing – as more companies lobby for changes. In 2010 “Time” published a great article suggesting that the number of illegal flights in China are increasing as the rich get bored. Perhaps they are looking for that extra scoop of convenience and prestige who can say.

Whether the Chinese elite are purchasing planes to refit for domestic, or international travel it doesn’t really matter, as more foreign aviation companies start doing business with Chinese billionaires. Read about this from China Daily USA. 

USA – Why Do Business with China? Is It Time They Agreed On Something?

USA - does it really need to find a way to do business with China with economic conflict?

China – USA trade is a hot topic with many politicians stepping into the fray, disputes run from solar to the trade deficit. However there are growing voices in Washington calling for a bilateral investment treaty (BIT) with China. What issues are at stake? Would it be more constructive for the world’s two leading economies to work out there differences?

I believe so, it is essential for the USA to find equal footing on international business with China. The fact that the Chinese economy maybe slowing down – may help to bring them to the negotiating table. China’s change in leadership this year might also yield greater benefits for doing business in China and with China. With the rise of other economies in the region, It might be in both of their interests to shore up any disagreements over trade and investment. MSN money explores the issue in detail.

China – Fracking For Engery Part 2

Conducting business in China and the energy demands of China and other industrial countries

I don’t know about you, but up until I included “Fracking For Energy – Part 1” in my blog I honestly thought it was just a naughty word used in “sci-fi budget movies” and “sci-fi TV”. Obviously this is one of the reasons “The Guardian” has rather cleverly followed up with a second part guide.

Energy policies have implications for all of us, this is even more apparent when the demand is outstripping the supply or close to it. There is an insatiable demand here in China for almost everything and I am not just talking about energy. However the question is how far are leading industrial nations willing to go to chase energy? For example China is taking a stronger stance in the South China Sea – could this be a sign of things to come. What’s next USA vs Russia for the North Pole?

I believe energy, especially oil and gas will last longer than people predict. It seems obvious to me that as technology improves we are just more likely to drill deeper. Despite our justified fears for the environment – it’s easier for us to stay on this road than to kick our dirty engery habits. This article explains further, on how the method of “fracking” will affect our lives – Guardian News

China’s Elite – Coming To A Mansion Near You

China's wealthy class by prime real estate overseas - more business opportunities in china

Chinese investors are so interested in shifting a portion of their wealth overseas that they are buying properties in most countries specifically Europe, North America and Australia.

I have personal knowledge of several real estate companies doing exactly this. These companies are often local with links to agents overseas – who offer them a commission on a completed sale. However I also know several foreign companies and partners who after looking closely at their reasons for doing business in China – have made the plunge.

Most of the clients themselves are high flying Chinese business professionals or wealthy investors looking to move their money safely overseas. So it comes no surprise that mansions, estates and luxury apartments are being snapped up by the new rich – with this in mind enjoy this article by the China Daily USA.

 

Doing Business With Chinese – Starbucks Is Booming

Starbucks - pleased to do business in China

Starbucks seems to be everywhere in the news recently and much of the talk is on their success and expansion. Their profits are up and investing in China early on, has already proven itself as one the smartest moves the company ever made. Starbucks’ CEO and executives discuss their Q2 profits – more on this story – Seeking Alpha

China – Fracking For Engergy Part 1

Chinese business, the Chinese economy and population all create a huge demand for energy - China and the rest of world look to fracking

 

Fracking energy – don’t be like that…. I’m not being rude. The race for energy has always been competitive but as supplies (supposedly) are running lower and lower. China is one of the latest energy hungry countries that includes regions like North American and Europe that are increasingly using “fracking” as a method of getting at shale gas. What are the benefits, repercussions and what has this got to do with business in China? Please read more on this interesting article – Guardian

 

 

Starbucks Expands In China

Starbucks was only of the early comers to the China market

Starbucks has pretty much lead the coffee shop sector ‘s growth in China. To illustrate the 
point, the city I started in 8 years ago had only 1 shop when I arrived, within 6 years this shot up to around 15 stores and then I stopped counting. Recent headlines indicated that Starbucks’ plan to triple the number of stores across China. Interestingly wasn’t it just a while ago that Starbucks was closing stores all across the USA, so what’s the interest in China? Why are they doing business with China?

Here’s why:

• Commercial rental costs in city centers, at landmark locations, or near new subway lines cost a fraction of similar locations in the USA
• The cost of labor even though rising in China is still a bargain for Starbucks and for retailers such as Walmart
• Chinese customers in tier 1 cities and increasingly tier 2 cities can’t get enough of Western food and other brands
• Retail sales are conducted on a like for like cost basis i.e. despite the lower costs, the consumer pays the same for a coffee as they would in the US

China has an ever growing appetite for all products western, yoghurts, Ice cream, pizza, even pasta (which is made from a different flour to noodles) are gaining in popularity and in the case of coffee most Chinese consumers don’t even like the taste… although that’s changing with the younger consumer. Other brands have been very clever in localizing their products for taste and adding items that they wouldn’t have at home – these include most of the major fast food brands! Whether the consumer in China truly enjoys western products (and some certainly do) or whether they are buying into an image or concept is open for debate, but in the case of Starbucks it’s simple – it’s getting a lot more bang for its coffee cup here in China – Starbucks article.

How Does Doing Business In China Compare To Other Countries?

Business opportunities in China

Will the fat cat corporations always remain on top? Who’s in and who’s out? Is anyone profiting from international business with China? Are countries in Europe or North America even doing enough to attract or facilitate big business? Cisco’s John Chambers discusses these points with Bloomberg.

Business Culture in China Differs From Their Neighbors

Business culture in China, differs from other Asian countries

 

Many of the countries in Asia especially North East Asia share a similar cultural background to varying degrees. Over a period of time each culture has grown to have its own identity, even if some common roots can still be observed. For example Korea and Japan both still have a place for Chinese characters, parts of Vietnam have languages closely related to some Chinese dialects. Business however may on the surface of things have some similar patterns, behaviors and procedures. This article demonstrates that there are many differences between Chinese business culture and its Asian neighbors. Read full story …. 

Chinese Business – Basic Etiquette Tips

Overdoing it? Why take the chance - do your homework before you start doing business in China

 

I have been doing business in China for around 8 years, my own experience has been very diverse, I have dealt with Chinese business people from all walks of life. The following article mirrors some of my own thoughts in my e-book. If I could add just one more thought it would be – when dealing with people senior (either in age or status) to you, listen more than you talk! They might ask you questions and it would be easy to assume they want a full and complete answer, but often they are just being polite. Also don’t forget that translation lengthens the dialogue, it can also make a conversation one sided and boring. Keep your answers short, it might not be reasonable to expect a person with senior status to give you their whole and undivided attention. There might simply be other dealings or dynamics at the table that you’re unaware of – Read more here.