News relating to
Property and Construction Market -
announces new policy which encourages & supports private
enterprises to invest and
to develop business abroad -
More Chinese property investors, developers, contractors &
suppliers are coming to your shores.
Have you got your B2CB (Business to Chinese Business) strategy &
action plan ready?
China's National Development & Reform
Commission, together with 12 other ministries including Foreign
Affairs, Industrial Intelligence & Information, Ministry of
Commerce, and the Central Bank of China, announces a significant policy
earlier this week on Wed
4.7.2012 - "Implementation guidelines regarding promoting and guiding
private enterprises to actively develop investment outside China". The
guidelines are about forming supporting policies to encourage private
enterprises to invest overseas, streamlining and framing management of
private enterprises' foreign investment, and delivering support
services to private enterprises for their foreign investment plans.
to the guidelines, China is going to substantially increase its
directing and guiding effort for Chinese private enterprises to invest
overseas at the macro level. The investment overseas is to be
guided in such a way so that it will not be ad-hoc and confused, but in
an orderly way. The guidelines list requirements for
communication and co-ordination between governmental departments,
research on topics concerning foreign investment, and resolving major
issues that may be encountered in developing foreign investment and
business in a co-ordinated way.
The guidelines require relevant government departments to formalise
control of Chinese private enterprises'
business conduct when carrying out foreign investment or developing
business overseas; to guide Chinese private enterprises how to follow
foreign local laws and business standards; to pay attention to
protection of foreign local environmental resources; to respect foreign
local social customs & habits; to protect local workers' legal
right; and to carry out required social responsibilities.
The guidelines also require government departments to promote active
public relation programs by private enterprises, improvement of
communication & connection with overseas business communities, and
to establish a good image for Chinese private enterprises investing
overseas - law-abiding, trust-worthy, and social-responsible.
The guidelines require government departments to guide the
and co-operation among Chinese private enterprises when investing
overseas, to avoid confusion and negative competition.
Implication for business
The announcement of the policy guidelines indicates that the
"Go-Abroad" policy of last 2 years is now elevated to another level of
implementation. For China to control domestic inflation
successfully, particularly in escalation of property prices, and to
balance foreign trade and investment, encouraging Chinese private
enterprises to invest abroad is a logical & expected policy.
This implies that more and more Chinese property investors, developers,
contractors and suppliers will turn up in overseas markets which are
new frontier for them. Vice versa, these new investors with
abundant financial resources are new opportunities as customers, JV
partners, funding sources, supplies, service resources, for many local
businesses around the world.
However, many of these Chinese private enterprises would be first-timer
investors and business developers in foreign markets. Most of
them would lack local language skill, local market knowledge, local
business conduct understanding, and local legal knowledge. To
appeal to these new investors and customers, local businesses may first
need to understand the Chinese way of business, the Chinese way of
receiving information and how to present the local business in Chinese
to them - at the minimum, a proper, relevant and meaningful Chinese
name of the business (if desired) on namecard and description of the
Chinese on business marketing brochure and website. Another
relevant point is to have an appraisal of the business logo to check if
it unintentionally relates to anything "bad and nasty" in the eyes of
Chinese culture. Bear in mind that Chinese language and written
communication is heavily based on graphic pattern and pattern
recognition. The assistance of a consultant who understands both
the local business practice and the Chinese business practice will be
very valuable in such circumstance. Speaking the "language" and
projecting the "writing" that the Chinese private enterprise business
owners are accustomed to will give foreign local businesses a big boost
in attracting and closing deals with this new wave of investors.
AAPAC Group can help
If you need assistance in terms of setting your business up to prepare
for B2CB (Business to Chinese Business) marketing, our company can
help, particularly if your business is in property development, project
management, planning, architecture, design, engineering, construction,
building material & system, properties & real estate. The
has previously assisted major architectural firm in establishing
Chinese name for the business, which has become a success in the China
market. He has also assisted in preparing their marketing
brochure in Chinese and other promotional material in Chinese graphics.
Analogy of high liquidity in China
- "When water level in a reservoir rises to the top, the build-up of
massive pressure behind the dam needs to be lowered so that the dam
structure is not subject to extreme loading for long period of
time. Water needs to be released in a controlled manner so that
the dam as well as the areas outside the reservoir will not be damaged."
Source: HKEJ -
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