What is “Guanxi” and how does it affect foreign businesses in China?

Q. Many people have often stressed the importance of “Guanxi” [pronounced `gwan-shee`]—that is relationships—and how it plays a vital role in successful business deals in China. How do you see business relating to Guanxi? A. First of all, Guanxi is often viewed by foreign enterprises and foreign parties as some kind of a mysterious Eastern…

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Can I save a distressed business in China through restructuring?

Note: IPO Pang’s Trident division distress management services have been consolidated into IPO Pang’s overall services in an effort to bring more comprehensive service to all our clients. Q. I understand that IPO Pang has a division called Trident China Venture Restructuring. What can you tell us about it? A. Trident was created because we saw a clear and growing need…

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How do I prepare to start a business in China?

Q. Let’s assume that I run a foreign company and I’ve decided to start a Chinese operation. What is the single most important piece of advice that you could give us? A. I think the most important thing would be to be prepared, not just in terms of knowing your market or knowing who your partners…

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How can I find a good Chinese business partner?

Note: IPO Pang’s Trident division distress management services have been consolidated into IPO Pang’s overall services in an effort to bring more comprehensive service to all our clients.   Q. Many foreign companies that come into China rely on Chinese partners in one way or another. What advice would you give a foreign company in finding a good partner? A….

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How do foreign businesses succeed in China?

Q. Over the last 20 years of working with international companies, you must have seen many that have succeeded and certainly many have failed. Why do you think the end result is so different for these companies, and from your observations, why are the Chinese are so capable of competing? A. First of all, over…

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How important are contracts and dispute resolution clauses in China?

Q. How important are contracts and dispute resolution alternatives in China? A. I think they’re very important. I can remember years ago when I first came to China to do business. Oftentimes, a local party will say, “You don’t need to have a long contract. Three or four pages is good enough.” Well, China has come a…

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How can I protect my intellectual property and trade secrets in China?

Q. One of the concerns that foreign enterprises have about doing business in China is the ability to protect trade secrets. In particular, how to prevent your local partner from taking your technology away and spinning it off into his own business and competing with you. How do you think about this? A. Benjamin Franklin had a…

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