Excerpts Chinese Affairs
This element is very strong in the practice of launching a company in China. As I said, stems from the presumption that they could act in China on the basis of their experiences, considered sufficient to meet the challenges in China. Not so. After a while everyone becomes aware that China is a different world. This knowledge can cost you later.
Another element linked to the fake is the low savings propensity, which, combined with poor knowledge of the country, are what appear to be real cost savings, which are proving increasingly false. Let's see some
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- Relying on a Chinese economic and administrative law firm, rather than an international structure (most expensive)
- select staff on the basis of information, suggestions, recommendations or contact the local partner
- Choice the partner with which to start operations. Again there is very occasionally. Often the partner is a superficial knowledge or nearly so. The Chinese partner is sometimes entrusted with the complete management of the Company. The control is very low. The disastrous effects, in economic terms but also to legal liability (tax and labor law in particular)
- launched an initiative on the basis of a few partial data. We have seen cases of companies from the carbonated market, based on an experience of a few days or weeks in China. Some spectacular, where the Chinese are very clever, is sufficient to convince the company that China is the future, and that the partner is the right one.
- not perform due diligence before entering into a JV to acquire or even in whole or part of a Chinese company. Due diligence is an extremely useful tool
- Issue orders to unknown companies do not scan
- Quality
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