Start Your Business in
Why is this a great year to go
What are your opportunities?
How do you compete with local company?
Start from here
Why is this a great year to
start your business in China
2005 – 2006 are Critical years for
China’s entry to WTO
China currency (RMB) is pegged
to the US dollar.
2005 – 2006 are Critical years
for China’s entry to WTO
Lower import tariffs to 9.44% on average by 2005
Open to foreign competition of a domestic market
currently monopolized by the government: agricultural,
automotive, banking, insurance and telecom industries.
China's reform in the post-WTO era
2004 Report to congress on China’s WTO compliance
China currency (RMB)
China currency (RMB) is pegged to
the US dollar and US dollar is having
inflation. So it is a good time to
invest money to Chinese currency.
My personnel opinion is this won’t
change in the near future
What are your
Export your products, get extra profit
Import from China, lower your cost
Out sourcing, lower your cost
Startup and fund you company in China.
1. Work with stock exchange listed companies in
China, get funding from those companies
2. Merge or start joint-venture company with
Chinese companies, get funding from U.S. stock
3. Provides service to US international companies
4. Provides service to China international
companies in U.S.
If you have existing technologies/products
Work with stock exchange listed companies in
China, get funding from those companies: These
companies are willing to invest/acquire
technologies from U.S. to gain better performance
on stock market. And they have money.
Tip: Don’t invest money on China’s stock market
unless you know the risk very clear.
Merge or start joint-venture
company with Chinese
Get funding from U.S. stock market
US Company A: OTCBB (US Over the Counter
China Company B: A telecommunication company
Joint Venture Company C: Between A & B
Stock price of US Company A went from 8cents to
above 80cents in a week
Tip: your business with Chinese company could affect
your stock price a lot
Build connection to
Provides service to US international
companies in China.
Provides service to China
international companies in U.S.
It is recommended to license the technology to the
subsidiary and charge a per unit royalty. Several
First, the parent company retains ownership of the technology.
Second, if the site is a start-up, royalty payments will help the fledgling
company in it's early cash flow problems. The parent will be compensated with
a steady flow of royalty income based upon the success of the subsidiary long
term. This stretches out payments and with success of the subsidiary, results in
greater lifetime revenues.
It also is most likely the best alternative form a tax standpoint. The parent does
not record a large revenue n the first year and the subsidiary does not incur and
additional expense that it may not be able to use as early like of a company
usually is at a loss on the earnings statement and the ax deduction is not
How do you compete with
Service – This is the best field I am
seeing that U.S. companies can play
with in China market.
Quality – You could easily find out
how you can do better than native
companies once you get there.
Average Salary From $1500 -
$24000 per year for engineers. Pay
by month. Lots of companies pay 13
Office Cost - $500 - $6000 per
Sales - $500,000
Total Paycheck cost: $18,380
Manager - $2500 Income - $50,000
Finance - $1250 Total Cost $29380
Cashier - $1000 Tax - $3600
2 Sales – $2350
2 in store Sales - $950 Net - $14020
Purchase - $1250
Deliver - $780
2 Engineers – $2500
Office Cost - $8000
Financing - $3000
There are some areas including
some places in Beijing, no company
income tax for 3 – 5 years for foreign
All land remains the property of the
People's Republic of China.
Foreign firms can not own land in
china. Corporations lease the land
typically for a period of 40 - 70 years.
It is re-negotiable at the end of that
Export from U.S.
In the U.S., there are a number of high technology
products which are illegal to export. These
primarily are around defense related technologies
(weapon and nuclear, etc.) and some computer
Intellectual law - Patents and Trademarks:
Cost of Patent – Very low
Look for people with 5 – 10 years
experience before came here. ECE/Law
How do you start
How do you start
Start from a Tour. Enjoy the life
Is outsourcing a threat or opportunity?
Blessing or Bane(塞翁失马，焉知非福)
Chinese Idiom: Blessing or Bane
Near China's northern borders lived a man well versed in the practices of Taoism. His horse,
for no reason at all, got into the territory of the northern tribes. Everyone commiserated
with him. "Perhaps this will soon turn out to be a blessing," said his father. After a few
months, his animal came back, leading a fine horse from the north. Everyone
congratulated him. "Perhaps this will soon turn out to be a cause of misfortune," said his
father. Since he was well-off and kept good horses his son became fond of riding and
eventually broke his thigh bone falling from a horse. Everyone commiserated with him.
"Perhaps this will soon turn out to be a blessing," said his father. One year later, the
northern tribes started a big invasion of the border regions. All able-bodied young men
took up arms and fought against the invaders, and as a result, around the border nine
out of ten men died. This man's son did not join in the fighting because he was crippled
and so both the boy and his father survived.
Bad luck sometimes turns out to be good luck, and good luck can
sometimes be bad.
When they both exist, will you be able to see the opportunity? Are
you willing to take the opportunity?