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Business Profile: China's economy is generally doing well despite the downturn elsewhere in Asia. Industrial growth is healthy although it has slowed recently, exports and imports are on the increase and international interest is growing. In the 1990s, the government became increasingly aware that an improved infrastructure was crucial to development and both the road and rail system have been, and continue to be, modernised and expanded. Government policy and directives still dominate many sectors of the market and political changes within the Party have sometimes adversely affected the economy and discouraged some international companies from investing heavily. While some businesses have chosen to stand back and watch before investing, others have plunged in. International companies with a presence in Beijing include AT&T, Hewlett Packard, IBM, Motorola, Microsoft and Fujitsu.

The introduction of a centralised market economy has seen the demands of the consumer increase significantly and now the emphasis is on meeting this demand. The attractions of the largest consumer market on earth are self-evident and many foreign companies are eager to be there and the government is keen to encourage such investment and to import foreign skills. The government wishes to reduce its control over many of the nation's enterprises and it is planned that early in the twenty-first century, company directors will have assumed full responsibility for profits and losses. In reality this has yet to happen as most enterprises continue to operate as before.



Business Etiquette: When it comes to conducting business in China, infinite patience is key. To many foreign businesspeople the protracted pleasantries at the beginning of each meeting, the drawn-out negotiations where each minor point is discussed at length and the seeming reluctance to close the deal can be very frustrating indeed. In the West, business is conducted at lightning speed as deadlines have to be met, whereas in China the impression is given that there is all the time in the world. The only way to deal with this is to allow plenty of time for discussion and negotiations and ensure that every important condition is included in the contract as the Chinese will follow it strictly once business has been concluded. Business cannot be discussed over lunch. If Chinese hosts provide a banquet, a return invitation is expected and this will usually be in the evening. The Chinese also prefer their own food so do not suggest a Western restaurant for this. Nowadays, more and more business is conducted directly with Chinese companies rather than with the State. However, every business proposal will, at various stages, come up against the bureaucracy of a government agency that has to be convinced of the viability of the proposal and then have some input in the contract. An understanding of the bureaucracy of decision-making in China is crucial to moving business forward.

Chinese businesspeople are very formal and a smart, sober suit is a must as well as the all-important exchanging of business cards. Business hours are usually 0800-1700 weekdays with one or two hours for lunch. Appointments for meetings must be made in advance and punctuality is very important.



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