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| Beijing
Business Profile |
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Beijing
Economy
China’s economy is doing reasonably well despite the decline
elsewhere in East Asia, which has had little effect on business
here. In the first few months of 2001 Beijing’s Gross
Domestic Product grew by 8.1% continuing on from the significant
growth of the previous year. Much of this is due to to the Chinese
spending more money on housing and transportation. Retail
sales have also risen during the same
period – by 10.3% The effect of China’s entry into the
World Trade Organisation (WTO) at the end of 2001
has yet to be analyzed. It took 15 years of talks for China to be
accepted into the WTO allowing it access to lucrative global markets,
as well as opening up its own markets to outside investment. In
the short term, there could be rampant unemployment
as the government discontinues its protectionism of its state-run
industries and hones their competitive edge, which has already increased
profits. In the long term, more jobs might be created
as foreign companies invest in China, no longer
experiencing the annoyance of years of red tape and unpredictable
profits.
Many regions of China, particularly in the western and central areas,
are struggling (often with grave human consequences) to conform
to the demands of the market economy established by the government
in the 1980s however, Beijing continues to lead the country both
politically and economically. A major factor in Beijing’s
persistent prosperity is the city’s IT
and telecommunications industry,
which is the most advanced in China: an infrastructure of over one
million km of optic fibre within the city serves approximately six
million local telephone subscribers.
One cause for the foreign business presence in Beijing is that it
is a major starting point into China for foreign investors. The
extensive list of premier international companies
operating in Beijing includes Hewlett Packard,
Microsoft, IBM, Motorola and Fujitsu.
Shanghai and Shenzhen may have China’s most lucrative stock
markets, however, since all political directives continue to originate
from the capital, it is logical for overseas companies to be close
to the centre of Chinese power in order to have access to the major
policy-makers and planners of the economy. Large international insurance
firms, such as Sun Life Assurance, are presently
exploring China with interest.
The Chinese estimate that 3.6% of Beijing’s seven million
strong workforce is unemployed, but, this figure does not consider
the city’s rural migrants or those out of work but still on
the payroll of state-owned companies. Independent analysts report
that if these workers are taken into account, the real number of
unemployed is around 10% of the workforce or up to 700,000.
Beijing’s major business districts
are Chongwen in the east, near the China
World Trade Centre; and Wangfujing, just
east of Tiananmen Square, which is the location
of the Bank of China and the Xindongan Plaza, Beijing’s first
indoor shopping mall.
Business
Etiquette
Infinite patience is the key when conducting business in
China. To many foreign businesspeople, the protracted niceties
at the start of each meeting, the long negotiations where every
minor detail is discussed at length and the apparent reluctance
to complete the deal can be extremely frustrating. The only way
to handle this is to allow lots of time for negotiations and discussion
to ensure that every vital condition is included in the contract
as the Chinese will strictly adhere to it once business has been
concluded.
Chinese businesspeople tend to be very formal and a smart, sober
suit is a must, as well as the obligatory exchanging of business
cards. When exchanging business cards, the polite way is to use
both hands to do so. Cards should include English on one side and
Chinese on the other. The person who initiates the invitation pays
the bill for business meals. When visiting a business associate’s
home, a modest gift, such as any kind of flowers or chocolates,
is appropriate; avoid giving expensive gifts and giving money will
be considered an insult.
Business hours
are normally 08:00-17:00 weekdays, with one or two hour lunch breaks.
There is a monthly magazine businesspeople visiting Beijing will
find interesting;Business
Beijing |
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