China Business Opportunities

China Business Opportunity Returns

2007-01-19T08:48:00.000-06:00

After couple months of leaving this blog idle, I have decided to start blogging again. The reason is because during the course of this period of time, I've experienced quite a lot in terms of doing business in China, the general trend, and some of the recent changes that occured. So I decided to blog again to share these insights with you guys.

Anyhow, let me tell you what I've been up to lately. I've been focusing on growing my company Guillen Global, a startup company that operates multiple ecommerce stores in various niches. Some of those stores include My Popcorn Machine .com, Wholesale College Textbooks .com, and LG Tickets .com. And where do I get my products? Yea you're right - China. You have to be amazed by the price discrepency of Chinese manufacturer and US ones. Not only is the quality of Chinese products became better and better, the price is still remaining low. US manufacturers will have a tough time competing with them for a while.

Besides Guillen Global, I have continued my consulting practise through my company Dominic Lee & Co., mainly focusing on providing consultations in internet marketing and strategies of doing business in China.

Next time, I will tell you more about what I have learned through these experience and how it will benefit you in your China business endeavor.

Here's the deal about China business opportunities blog

2006-04-18T15:22:00.000-05:00

Dear Reader,

I have stopped writing on this blog for a while, the reason is because while I recieve a lot of traffic from search engine per day, only minor part of these visitors end up coming back to read this blog. Furthermore, none of my readers had left me a comment or whatsoever. So I wonder, are my contents just not very useful to you?

So here's the deal, if you want me to continue writing on this blog, please leave me a comment as what do you like/dislike about this blog and tell me about what information are you looking for exactly, and I will act (or write) accordingly. If I don't recieve any comments within 2 weeks, I would assume there arent much interest in the topic and I'll just give up writting. Sad.. but I cant waste my time on doing something unproductive, I have my businesses to attend to.

Thanks and look forward to seeing your comment.
Dominic

China Internet Business Opportunities 1 - Domain Real Estate V

2006-03-24T09:08:00.000-06:00

China Business Opportunity

So this time, we are going to reveal the million dollar secret, which of the 3 systems should we go for? And how do we find appropriate keywords so we can make a profit?

So let's look at which one is the most popular right now. At this moment, most internet users in China are the more educated ones and therefore has at least some knowledge in English. Because .com.cn was introduced so much earlier than the other 2 methods, it is still the most widely used and accepted type of domain.

As for the future potential, it seems like more and more people are leaning towards to Chinese Domain compare with 3721, although 3721 is owned by yahoo and currently has a larger market share; Chinese Domain had only launched for little more than a year and is already gaining some momentum in the country. The other factor why I believe Chinese Domain will surpass 3721 is because its compatability with the current system. They still use a .something, although that something is in Chinese. Therefore, it opens up a window of opportunities that in the future, it can be used interchangeably with the .coms. However, in a forseeable future, .com.cn is still the way to go.

Many of the good keywords .com.cn domain names are already being snatched up; however it is not nearly to the extent of .com. As for Chinese Domain, there are still a lot of major keywords left unregistered.

So how do you find these keywords? (especially for you who do not speak Chinese)

This is how you find keywords. You already know what .com sold for a high value, so what you want to do is to find the chinese translation of it. For .com.cn, you want to look for the word's "pinyin"(the english way of putting Chinese) and for chinese domain, you want to just type in the Chinese Word. If possible, have a Chinese to double check your selection, as the results from the dictionary might be in the form of which very few people speak.

Where do I register for these domain?

Here's where you find it. Search for "domain registration" in www.baidu.com, it is the most widely used search engine in China and the 1st couple results should contain what you are looking for. For 3721's domain, you can go directly to www.3721.com.

This is the last entry regarding Domain Name Real Estate in China, next time, we will talk about other internet opportunities in China, including ecommerce, B-B services, SEO, and internet marketing.

China Business Opportunity

China Internet Business Opportunities 1 - Domain Real Estate IV

2006-03-22T13:41:00.000-06:00

China Business Opportunity

So yesterday we talked about Chinese Internet Domain, let us talk about an alternative to that today, it is called 3721

What is 3721?

3721 officially launched its Chinese domain keyword service in June 1999 and has since then experienced rapid growth. 3721 enables Internet users to navigate the web and search for relevant on-line information using real world names and familiar identities in their native language, rather than having to remember domain names/ URLs. (i.e. type "fish" instead of "http://www.fish.com")

The application was developed on top of the existing DNS infrastructure; it provides a human friendly Internet navigation interface as well as on-line directory search-like services. The service is widely available on client-software enabled browser as well as from most of the leading portal sites, search engines, and ISP portals throughout China.

In the past four years of market and technology development, 3721 has established itself as one of the most popular Internet brand in China. The CKW service is one of the most widely used service on the Internet in China, serving over 30 million keyword resolutions everyday and reaching over 90% of Chinese Internet users. 3721 has formed broad strategic partnerships with leading portals, search engines and close to 300 local ISPs throughout China. As a result, in addition to enjoying direct navigation and keyword search in the browser address line, Internet users in China can access the Chinese Keyword service from China's leading portals and ISPs.

At the international level, 3721 works closely with leading international companies, notably their collaboration with MSN enhances the users' search and navigation experience on the IE browser in China.

3721 is dedicated to the vision of helping millions of Chinese businesses and their prospective customers to interface more easily with each other on the Web. Going forwards, 3721 will continue its focus on keyword and related service development and strive to provide better and more human-friendly Internet navigation and search services for Internet users and businesses in China.

Note: The name of the company "3721" came from a Chinese proverb "as easy as 3x7=21", something similar to "Just do it" in connotation. It was the vision the founder of 3721 had when it was started - they wanted to make going online for the Chinese in their native language as easy as possible, which the company has achieved through their IE plug-in that translates Chinese keyword into domain names or search queries. 3721's service now reaches over 90% of the desktops in China. Also, a numerical domain name would be easier to remember than English or Pinyin (Chinese pronunciation in alphabet) word for ordinary Chinese, thus making the 3721 corporate web site easier to access for the target users, no matter whether they're using Chinese keyword or domain name to navigate to the site.

The Million Dollar Question...

So we have, in front of us, 3 options - .com.cn (or .cn), Chinese Domain (.gongsi), and 3721, which one is the most popular and most likely to dominate the future China Internet Market?

Enough of that; next time in China Business Opportunities, we will talk about the million dollar question, which domains are likely to become profitable and which to register for.

China Internet Business Opportunities 1 - Domain Real Estate III

2006-03-20T08:59:00.000-06:00

China Business Opportunity

This time, we are going to elaborate on the cyber real estate business opportuntiy in China, in specifically, show you how you can profit from Chinese Internet Domain and 3721.

Chinese Internet Domain

Chinese Internet Domain was developed and was launched March 2005 by the exclusive partnership of i-DNS.net International Pte. Ltd., the Singapore-based company that pioneered the concept and technology behind multilingual domain names, also known as Internationalised Domain Names (IDN), CNNIC, the Chinese Internet Agency responsible for Domain Names and the Ministry of Information Industry of the People's Republic of China.

The domain names are available under the top-level Simplified Chinese character extensions. 公司" (i.e. ".gongsi" which means "company" in Chinese) and/or ".网络" (i.e. ".wangluo" which means "networking") where the "dot" character can be typed in either English (ASCII) or Chinese. MII has endorsed these Chinese domain names at the Domain Name Management Policy announcement.

Owing to extensive pre-launch preparations over 2004 for the distribution of the necessary enabling software amongst the more than 100+ Million Internet end-users in China, names registered now can be immediately accessed and used by more than half of these Chinese Internet users. This wide usability has been achieved by a successful program to distribute tens of millions of plug-in software via all major search engines，portal sites and bundling with major Chinese software developers in China (n.b. over 2 million a month via Baidu, Sohu, Sina and others and to require all 4 major Internet Service Providers (ISPs) who account for some 95% of all end-users to adopt the necessary software to enable their users.

It is expected that the continuing effort to increase widespread usability, with ongoing progress to enlist ISPs and portals in Hong Kong, Singapore and Taiwan, should result in near-100% usability within the coming year in the Greater Chinese end-user community, which accounts for roughly one-quarter of all worldwide Internet users today.

After a soft-launch within China and MII's active public encouragement of such Chinese domain names; within several weeks of its launch, some 30,000 names - including names by the rightful trademarks owners of international brands like Rolex and Tudor as well company names by multi-national corporations like Societe Generale, Dell and Starbucks - have already been registered in these newly-government approved Chinese names of the form 名字.公司 (i.e. 'name.gongsi') and 名字.网络 (i.e 'name.wangluo').

Now i-DNS.net and its authorized Registrars, like LGA Telecom in Singapore, being the sole source of these names outside of China, have begun offering registration to its current and former customers, starting with the Singapore market. The purchase of Simplified Chinese names from the i-DNS.net/CNNIC partnership will automatically allow the corresponding web-site to be accessed by an equivalent, computer-generated domain name in Traditional Chinese characters (i.e. used in Hong Kong and Taiwan) free of charge. Conversely, one can also buy a Traditional Chinese name directly and get an automatically assigned Simplified Chinese version free.

Within China, the launch of Chinese Domain Names has attracted many corporations in registering their own Chinese Domain Names. To handle the growing demand and interest, 15 states, including Beijing, Shanghai etc. have been designated as regional centers in the effort to continue educating the public. Now that China has become one of the world's most dynamic economies, foreign multinational companies hope to expedite their marketing goals in China by registering these Chinese-character domain names since the emerging Chinese Internet consumer is predominantly a non-English speaker and strategically best approached via the Chinese language.

20 years after the Internet Domain name system in English was invented, and 7 years after NUS invented and pioneered the concept, and 6 years after NUS conducted an Asia-Pacific deployment testbed with a dozen nations and languages, and after 5 years of lukewarm commercial deployments in various parts of the world, with the majority being a misguided attempt at trying to get multilingual peoples to accept two-language hybrid domain names, finally it is being done.

It is worth noting that the current Greater Chinese Internet community, with most being in China, accounts for roughly half of the multilingual community from a language/script point of view and for whom the English/ASCII characters are insufficient as labels for Internet domain names since the majority do not speak English and hence had been left out of this phenomenon.

Furthermore, it is projected that by 2007/8 this Greater Chinese community will account for more than half of all Internet users, surpassing English as the main language of the Internet. So, the fact that China has championed this and most importantly already enabled both widespread usability and given its legal backing and authority over domain name disputes etc., signals that from a numbers point of view half the multilingual Internet peoples today are already enabled

With the enabling of China’s masses, MINC is well on its way to achieving its global mission of making it possible for any citizen to access the Internet in their own native language and help guide the remaining 4+ billion peoples or so who do not speak English and who are not yet on the Internet to have one less bridge to cross the Digital Divide.

It is important to note that, for the sake of clarity, that these Chinese domain names, completely in Chinese characters, are not to be confused with and are not in anyway connected with the Chinese/English hybrid domain names like 我的名字.com and 我的名字.net that have been marketed with mixed success since 2000 by Verisign. These are neither China-government approved nor widely usable in China.

All purchased names is protected for trademark and other rights by the dispute policy and regulations set by the Chinese government under the agreement that every domain name registrant will enter into with the mainland government authorities at the time of purchase.

These names can be purchased immediately from LGA Telecom Ltd. by visiting http://lga.i-dns.biz/. Potential registrants who cannot speak or type Chinese can also register names via an on-line transliteration service provided at a modest fee. With a one stop-purchase one can protect one's business and trademark interests in the Chinese marketplace which is expected to grow from the current 100+ Million eyeballs to more than half of all worldwide Internet users by 2007/8.

Ok, this is running a little bit long, so I am going to stop here and leave 3721 to talk about next time on China Business Opportunities.

China Internet Business Opportunities 1 - Domain Real Estate II

2006-03-18T16:59:00.000-06:00

China Business Opportunity

So last time we talked about how all the good .com domains are snatched up by internet pioneers who are making big bucks reselling them. This time we will focus on how we can apply the same principal to the Chinese internet.

But here's the deal, there are actually 3 different families of domain in China now, they are the regional extension of the western .com domain - ending with .com.cn (or .net.cn whatsoever); Chinese internet domain (which ends with a Simplified Chinese character extensions ".公司" (i.e. ".gongsi" which means "company" in Chinese) and/or ".网络" (i.e. ".wangluo" which means "network") where the "dot" character can be typed in either English (ASCII) or Chinese; and the third type is called 3721, which uses Chinese words or phrases as the address of the websites without any extensions.

So most of us already know about the .com.cn, so I am not going to talk about it. In the next entry I will explain further about the Chinese Internet Domain as well as 3721.

So stay tuned in China business opportunities for more info on cyber real estate in China.

China Internet Business Opportunities 1 - Domain Real Estate I

2006-03-18T16:51:00.000-06:00

China Business Opportunity

Ok, back from vacation; this time we are going to talk about some Internet Business Opportunities in China. In this entry, in specific, domain name (cyber) real estate in the Chinese internet business world.

What is Domain Name Real Estate?

"Domain Name Real Estate" is a term coined by the internet investment community relating to the parallel that exists between high quality internet domain names and real-world, prime real estate. Where entreprenuers snatch up the quality domain names (usually short real words) and resell those domains for many times their original value.

For example, the domain name Business.com was sold for a staggering $8 million and Wine.com was sold for $7 million dollars. That makes them the most expensive domain names in the world.

It's the .com addresses that are pulling in the big money. Out of the 32 million or so domain names registered worldwide over 22 million of them are .coms. The second most popular is .net, with a paltry 5 million domains registered.

But isn't it a bit late to grab those really great domain names and to turn yourself into an overnight millionaire by auctioning them off? Yes, the truth is, all the good .com domains were long gone, snatched up by Internet pioneers who realized their potential value. In fact over 98 percent of the words in Webster's dictionary have already been registered. So why are we still talking about this? You may wonder.

So here's the deal, while most valuable .com domains are being occupied, many valuable Chinese domain names are not. As a smart entrepreneur, you can exploit this opportunity very easily.

So now we have explained what domain name real estate is, next time in China Business Opportunities, we will talk about how you can take advantage of the cyber real estate opportunities in China.

China Business Culture and Etiquette 8 - Proper Public Behavior

2006-03-06T18:52:00.000-06:00

China Business Opportunities

This is going to be the last entry of Chinese Culture and Etiquette, next time we are going to switch the topic. Btw, I'm going on a vacation for a week, so I won't post until the end of next week. Sorry for the inconvenience caused.

Chinese will sometimes nod as an initial greeting but bowing is seldom used except in ceremonies (wedding, funerals..) . Handshakes are also popular; wait, however, for your Chinese counterpart to initiate the handshaking.

If you visit a school, theater, or other workplace, it is likely that you will be greeted with applause as a sign of welcome. You should applaud them at the same time they are giving you the clap.

Avoid making expansive gestures and using unusual facial expressions, it is not in Chinese culture to do that. Also, Chinese do not use their hands when speaking, and will be annoyed with a speaker who does.

You should however remember the implications of some common hand gestures. To summon attention, turn your palm down, waving your fingers toward yourself. When you want to point somewhere to illustrate a point, use your whole hand rather than your index finger. Chinese, especially those who are older and in positions of authority, dislike being touched by strangers.

Smiling is not as noticeable in China, since there is a heavy emphasis on repressing emotion, but you can't go wrong smiling gently. Members of the same sex may hold hands in public in order to show friendliness but public displays of affection between male and female are frowned upon. Do not hug your opposite sex as greeting even if it were the 2nd time you see them, it might make him/her feel awkward.

Do not put your hands in your mouth, as it is considered vulgar. Consequently, when in public, avoid biting your nails, removing food from your teeth, and similar practices.

Pushing and cutting ahead is common in lineups among Chinese, but they do not appreciate being cut in front of themselves.

Spitting in the public is no longer acceptable and offenders are subjected to a heavy fine now.

When I come back from vacation, we would cover some hot China business opportunities such as internet marketing, ecommerce, domain name real estate and much more!

China Business Opportunities

China Business Culture and Etiquette 7 - Business Entertainments in China

2006-03-06T18:51:00.000-06:00

China Business Opportunities

Business lunches are growing in popularity in China. Business breakfasts, however, are not as prevalent, except in Guangdong, Hangzhou and Fujian province where 'Morning Tea' is very popular.

Evening banquets are the most popular occasions for business entertaining. Generally, they start at between 5:30 p.m.-6:00 p.m. and last for two hours. Make sure to arrive on time. If you wish, arrive around 15 minutes early to a banquet; your Chinese hosts and counterparts will probably be present before the proceedings officially begin. Being punctual is a virtue in Chinese Culture, forget about the western philosophy of "never arrive to an event early".

Wait to be seated, as there is a seating etiquette based on hierarchy in Chinese business culture.
Generally, the seat in the middle of the table, facing the door, is reserved for the host. The most senior guest of honour sits directly to the left. Everyone else is seated in descending order of status. The most senior member sits in the center seat. Follow this seating pattern if you are hosting a banquet or a meal in your residence, whether for business or purely social reasons.
The host is the first person at the table allowed to begin eating by declaring the first toast. Then, the rest of the company can proceed with the meal. If you are the host, take the first piece of the most valued food (the first dish such events are usually sucking pig, so pick the piece which looks crunchy and doesnt have much fat) and put it on your guest of honour's plate after the first toast. This will signify that eating can proceed and is considered a friendly gesture.

Business is not discussed during the meal. Meals for just for networking purpose.

It is not uncommon for a host to order enough food for ten people at a table of five. He or she loses face if there are not plenty of left-overs at the end of a meal. Rice, considered by many Chinese to be filler, is generally not served until the end of a meal. So, if you want to eat rice with your meal be sure to ask the waitress or 'shou jie' ("miss" in Chinese) to serve it early, particularly if the food is spicy.

During a meal, as many as 20-30 courses can be served, so try not to eat too much at once. The best policy is to lightly sample each dish. Leaving a 'clean plate' means that you were not given enough food--a terrible insult. On the other hand, leaving a food offering untouched will also be offensive; even if you find a dish unappealing, try a small portion for the sake of politeness.
One important part of Chinese business entertaining is a tea drinking ritual known as 'yum cha.' It is used to establish rapport before a meeting or during meals. If you do not want a 'refill' of tea, just leave some in your cup.

If you are served food that does not require utensils, you may be given a bowl of tea; do NOT drink it! It is only for the purpose of dipping and cleaning your fingers.

It's perfectly acceptable to reach in front of others for dishes and other items. But many Chinese restaurant now has turning plates so you can just turn the dish you want in front of you.
Seeds and bones are placed on the table or in a specially reserved dish; never place them in your bowl.
It will be appreciated if you use chopsticks. When you are finished eating, place your chopsticks on the table or a chopstick rest. Placing your chopsticks parallel on top of your bowl is believed to bring bad luck. Sticking your chopsticks straight up in your rice bowl is considered rude because in this position, they resemble the joss sticks that are used in Chinese religious rituals.
Do not put the end of the chopstick in your mouth. Try not to drop your chopsticks, as this is considered a sign of bad luck.

When eating rice, follow Chinese custom by holding the bowl close to your mouth. Slurping and belching at the table can be perfectly acceptable: they are perceived as signs that you are appreciating the meal.

Toothpicks are usually offered between courses and at the conclusion of a meal. When using a toothpick, cover your mouth with your free hand for concealment.

Forming a personal relationship ['guanxi' in Chinese] is very important in Chinese Business Culture. Part of this involves participating in the strong drinking culture that exists here. Generally, the Chinese disregard anyone who does not participate in the inevitable drinking that takes place during almost all business dinners. And it is at these kinds of social occasions that most negotiating breakthroughs are made. Unless you have medical excuses, it is hard to avoid drinking in these circumstances.

Toasting, usually with beer, wine or Chinese white liquors, is an important part of Chinese business etiquette. You will often find three glasses on your table: a glass for your drink of choice [toast with this glass], a wine glass, and a shot glass for a liquor called 'maotai' or 'wu liang ye.' The host of a banquet offers the first toast. If you prefer not to drink alcohol, you can toast with a soft drink, glass of juice, or tea. Toasts will be proposed throughout the meal. Two popular toasts are 'ganbei' ['bottoms up!'] and 'kai wei' ['starting the appetite!'].

Sometimes, the Chinese enjoy testing the ability of a foreigner ['lou wai'] to handle his or her alcohol, especially 'er gua toe', a potent clear alcohol that has as high as 80 proof like Vodka or Scotch. A good practice would be to eat something beforehand. Before smoking, it's polite to offer cigarettes to those in your company.

You know a meal has reached a definite conclusion when fruit is served and hot towels are presented. Guests should make preparations to leave shortly after these items are offered. In accordance with Chinese business etiquette, the host will not initiate the guests' departure.

Tipping is generally considered an insult in China. Most government operated hotels and restaurants prohibit acceptance of tips. It is sometimes expected, however, in some of the bigger hotels and by younger service personnel, in the more open cities (i.e. Beijing, Shanghai, GuangZhou, Hong Kong...).

Follow Chinese business protocol and reciprocate with a banquet of similar value; never surpass your host by arranging a more lavish gathering as this will make them "loss face".

Generally, the Chinese are not great experimenters when it comes to their diet. Unless he or she has traveled extensively, typical Chinese businessperson doesn't like Western food.

If you are hosting a banquet, arrive at least 30 minutes before your guests.
Home entertaining is very popular in China. If you are invited to a Chinese home, you will probably be asked to remove your shoes. Again, arrive on time (but not too early, or else it might be awkward)

Next time in China Business Opportunities, we will talk about the proper public behavior in China.

China Business Culture and Etiquette 6 - Business Negotiation in China

2006-03-06T18:50:00.000-06:00

This time in China Business Opportunities, we are going to talk about business negotiations in China.

You'll find it beneficial to bring your own interpreter, if possible, to help you understand the subtleties of everything being said (or not said) during meetings. Remember to speak in short, simple, and sentences free of jargon and slang. Speak slowly, so that people will be able to understand everything you say. You will be surprised, sometimes even their interpretors find it hard to translate your words if you speak at normal speed.

Except for those who had recieved western education, Chinese businesspeople largely rely on subjective feelings and personal experiences in forming opinions and solving problems. Empirical evidence and other objective facts will be accepted only if they do not contradict one's feelings.

In Chinese business culture, the collectivist way of thinking prevails, even in sectors experimenting with free enterprise. During negotiation, you will find your partners often steer away from talk to you and start to discuss among themselves

“Saving face” is an important concept in Chinese culture. A person's reputation and social standing rests on this concept. Causing embarrassment or loss of composure, even unintentionally, can be disastrous for business negotiations.

The Chinese are very keen about exchanging business cards, so be sure to bring plenty of them. Preferably, print one side in English and the other in Chinese and include your title on your business card, especially if you have the seniority to make decisions. In Chinese business culture, the objective of exchanging business cards is to determine who is the decision-makers on your side. If your company is the oldest or largest in your country, or has another prestigious distinction, ensure that this is stated on your card. It's an asset to have your business cards printed in gold ink (the fonts only, not the whole card). In Chinese business culture, gold is the colour of prestige, prosperity.

Present your card with two hands, and ensure that the Chinese side is facing the recipient.
When receiving a business card, pretend to examine it carefully for a few moments; then, carefully place it into your card case or on the table. Not reading a business card that has been presented to you, or stuffing it directly into your back pocket, is considered impolite and an insult to the person giving you the business card.

In accordance with Chinese business protocol, people are expected to enter the meeting room in hierarchical order. For example, the Chinese will assume that the first foreigner to enter the room is head of the delegation. Since there is such a strong emphasis on hierarchy in Chinese business culture, ensure that you bring a senior member of your organization to lead the negotiations on your behalf. The Chinese will do the same. Only the senior members of your group are expected to lead the discussion. Interruptions of any kind from subordinates are considered shocking by the Chinese.

In Chinese culture, modesty is a virtue. Exaggerated claims are regarded with suspicion and, in most instances, dispised upon.

Chinese will not directly say “no” to you. Answers such as “perhaps”, “I'm not sure”, “I'll think about it”, or “We'll see” usually suggest a “no.”

Chinese tend to extend negotiations well beyond the official deadline in order to gain advantage. Even on the final day of your visit, they may try to renegotiate everything. Be patient, show little emotion, and calmly accept that delays will occur. Moreover, do not mention deadlines.
At the end of a meeting, you are expected to leave before your Chinese counterparts.
You may have to make several trips to China to achieve your objectives. Chinese businesspeople prefer to establish a strong relationship before closing a deal. Even after the contract is signed, the Chinese will often continue to press for a better deal.

Next time, we will talk about business entertainments in China.

China Business Culture and Etiquette 5 - gifts

2006-03-02T11:12:00.000-06:00

Last time we talked about the courtesy of addressing people in China, this time, we will cover the custom of giving and recieving gift in a Chinese business setting.

Gift giving is an important part of Chinese culture; nevertheless, nowadays, official policy for government officials forbids giving gifts; this gesture is considered bribery and your gift may be declined. In many business organizations, however, attitudes surrounding gifts are much looser. In any case, you will have to approach giving gifts with discretion. If you wish to give a gift to an individual, do it privately in the context of friendship, not business.

Chinese decline a gift three times before finally accepting (looking elsewhere, shaking their heads and waving their hands are the usual gesture), so as not to appear greedy. You will have to continue to insist. Once the gift is accepted, express gratitude. Go through the same routine if you are offered a gift or else you would be considered impolite.

Never present a valuable gift to a person in the presence of other people. Given the strict rules against bribery in Chinese business and political culture, this can cause problems for the recipient. Instead, do it privately. Do not take any photograph of any gift giving unless it is a symbolic gift presented to the organization as a whole.

Giving a gift to the entire company, rather than an individual, is acceptable in Chinese business culture as long as you adhere to the following rules:

-Gifts are exchanged AFTER all business negotiations are concluded .
-Specify that the gift is from the company you represent. If you can, explain the meaning of the gift to the receiver.
-Present the gift to the leader of the Chinese negotiating team.
-Do not get anything that is obviously expensive, so that the company will not feel obliged to reciprocate.
-Make sure that the gifts given to people of the same level of importance are equitable or of similar price. You do not want to cause any jealousy or other more complicated issues.

Do not wrap a gift before arriving in China, as it may be unwrapped in Customs.
If possible, have your gifts wrapped in red paper, which is considered a lucky colour. Plain red paper is one of the few “safe” choices since a variety of meanings, many of which are negative, are attributed to colours in Chinese culture.

Pink and gold and silver are also acceptable colours for gift wrap. Wrapping in yellow paper with black writing is a gift given only to the passed away.

Because colours have so many different meanings in this culture in different regions, your safest option is to entrust the task of gift-wrapping to a store or hotel that offers this service.

What NOT to give:
-Scissors, knives, or other sharp objects can be interpreted as the severing of a friendship or other bond.
The following items are to be avoided as they are associated with funerals:
-Straw sandals
-clocks
-handkerchiefs
-four of any item (the Cantonese word for “four” sounds exactly the same as the word “death”)
-gifts or wrapping paper in white, black, or blue

Next time on China Business Opportunities, we will talk about negiotating in Chinese terms.

China Business Culture and Etiquette 4 - Addressing People

2006-03-01T09:15:00.000-06:00

This time in China business opportunities, we are going to talk about the proper way of addressing people in China.

Chinese names is formulated in a different order than Western names. Their last name comes first and then a generational name, followed by their first name. Generational and first names can be separated by a space or a hyphen, but are frequently written as one word. The generational name is usually the first word of a two-worded first name. An example of a Chinese name in proper order would be Li Chenying.

Most people should be addressed with a title and their last name. If a person does not have a professional title, use “Mr.”, “Madam”, “Miss”, plus the last name. A married Chinese woman usually retains her maiden name; she will use her husband's last name on occasions for formal addressing only.

Many Chinese, especially those in the big cities, have an English first name to make it easier for foreigners to address them. You can expect to hear some rather odd and rare English names as they have no idea what the norm is, they usually take their names from novels or TV shows. (Yes, I have heard names such as Kitty Chow, Goldilocks, Barbie, and even Apple!)

Address people using official titles such as “General” “Committee Member”, or “Bureau Chief” whenever possible. It is importnat to remember: address the deputies by skipping the word 'deputy,' such as, 'Chief' for 'Deputy Chief,' 'Chairman' for 'Vice Chairman' 'General Manager' for 'Assistant General Manager.' They may feel offended if you did it otherwise.

Unless you're a Communist, never refer to someone as “Comrade.”

Next time on Business Opportunities in China, we are going to talk about the custom of gifts in a business setting.

China Business Culture and Etiquette 3 - Conversation

2006-02-28T12:19:00.000-06:00

This time we will talk about conversations in a China business setting or even networking in general. Chinese values relationships a lot and lack of personal connections can be a deal breaker. So here you go:

Before your visit, prepare yourself by googling some basics of Chinese culture, history, and geography; make an effort to learn and use at least a few words in Chinese; your initiative will be noticed and appreciated. However, make sure you know the meaning and appropriate occasions for what you say. The simple "How are you?" (Nei Hao Ma?) works like a gem and can never (ok, seldom) go wrong.

China has a culture based on courtesy and implications. When your Chinese counterparts smilingly and politely or even enthusiastically say 'No BIG problem' or 'The problem is not serious', they usually mean 'There are still some problems.' When people compliment on you, do not say "Thank you"! It implies that you agree with the compliment and is considered arrogant. In stead, you should said something like, "No, no, not really at all" and then go ahead to compliment them back.

You may be asked intrusive questions concerning your age, income, and marital status. (It is extremely common for them to ask for your marital status, not so for age or income) If you don't want to reveal this information, remain polite and give an unspecific answer. Don't express irritation with the questioner, since 'losing face' has such negative implications in this culture.

There is not neccessary to avoid mentioning Taiwan or Tibet (maybe Tibet but definitely not Taiwan). If the subject comes up, never refer Taiwan as 'The Republic of China' or 'Nationalist China.' The correct term is 'Taiwan Province', or just 'Taiwan.' Refrain from using the terms such as 'Red China', 'Mainland China,' and 'Communist China.' Just say 'China' or 'PRC' (Abbreviation for People's Republic of China). However, the general rule of thumb is: talk less about politics, talk more about business.

'Small talk' is considered especially important at the beginning of a meeting; here are some topics of small talk that are hard to go wrong:

Chinese scenery, landmarks
weather, climate, and geography in China
your travels in other countries
your positive experiences (don't mention how dirty the bathrooms are) traveling in China

Next time on China Business Opportunities, we are going to talk about the custom of addressing your host and other Chinese.

China Business Culture and Etiquette 2 - Attire

2006-02-27T15:06:00.000-06:00

Today we are going to talk about the proper attire for business meetings in China.

For men, I'd say most of the western custom still applies; conservative suits and ties in subdued colours are the norm. In many western culture, it is now acceptable to not wear tie, however, you should always wear one in China. In formal events, men should wear only suits and ties - no tux! Tuxedoes are not a part of Chinese business culture.

For women, you should be aware that China is a very conservative society, you should wear conservative suits or dresses of subdued colors i.e. black, brown, grey; a blouse or other kind of top should have a high neckline, do not show too much skin.

Because of the emphasis on modesty in Chinese business culture and culture in general, flat shoes or very low heels are the main footwear options for women. This is true especially when westerners are relatively much taller than Chinese. High heels are acceptable only at a formal reception hosted by foreign diplomats.

Next time in China business opportunities, we are going to talk about business conversation customs in China.

China Business Culture and Etiquette 1 - Appointments

2006-02-26T21:51:00.000-06:00

Sorry for not blogging for a while, I was extremely busy the past two weeks dealing with the launch of my website. It is a marketplace called Esdena.com where college students can buy and sell college textbooks, DVDs, shot glasses and much more.

Anyhow, in this series, we are going to cover the culture and etiquette of Chinese businesses. Do not overlook this important aspect because Chinese takes them seriously and westerners are often not aware of these cultural differences. Last time, we talked about visiting potential joint venture partners or manufacturers in China. So I will start off by talking about making appointments in China.

First off, be punctual! Being late for an appointment is unacceptable in Chinese business culture, it shows a lack of respect and sincerity for the person you are meeting with and the business venture.

Business and government hours in China are 8:00 a.m. to 5:00 p.m., Monday through Saturday. There is, however, a five-day work week in larger cities. Avoid visiting government offices on Friday afternoon, not only is it reserved for 'political studying' of the officials, would you want to meet someone on a Friday afternoon? Store hours are 9:00 a.m. to 7:00 p.m., daily. Most stores in big cities like Shanghai, Beijing, and Hong Kong, however, remain open until 10:00 p.m.

When scheduling your appointments, be sensitive to holidays such as Chinese New Year (late Janurary or early Feburary). During May Day (May 1st), or the National Day, many businesses will be closed for up to a week.

If you want to arrange an appointment with local Chinese business and officials, the East Asia & Pacific office of the U.S. Department of Commerce can help you; they are also effective in identifing the contacts you will have to establish to achieve your objectives. Sometimes, you might want to hire a reputable Public Relations firm, as they can help you arrange meetings and negotiate with senior Chinese officials or even pinpointing whom you should meet for your purposes.

Next time on China Business Opportunities Blog, we are going to talk about the appropriate dressing when you attend a business meeting in China. Stay tuned.

Answer to a reader's question- Part 4

2006-01-18T09:11:00.000-06:00

This time we will elaborate on sourcing in China.

Everything that I talked about last time was based on one important assumption - your vendor understands what you are saying. While I am confident to say many businesses in China have staff members who can speak English at an eloquent level, many don't. So what are you going to do?

Joint Venture.

Joint venture with a local chinese (who speaks English) can solve many of your problems. Law and regulation changes are notorious in China and what is true this morning might not be anymore the following afternoon. Having a local chinese taking care of this, it can save your worst nightmare.

With the huge profiteering opportunity, I would not worry about adding a middleman. What I do is I outsource to my sourcing effort to several middleman so they do the work for me (although I speak Chinese. Why outsource then? To save some work). I have worked with them over a period of time now and have met with them in person, thus I trust them entirely. However, when you are starting out doing joint venture, do not be afraid to walk away a partner to another if you feel you do not work well with him. Don't worry, there are 1.3 billion Chinese, so you are bound to find a good one, it might just takes some time.

This concludes the answer to my reader's question, and next time we are going to get back to more China business opportunities.

Answer to a reader's question- Part 3

2006-01-17T14:22:00.000-06:00

This time we are going to talk about things you should be careful of when sourcing in China.

Lets face it, sourcing in a foreign country poses many more potential problems than doing it domestically. However, the more difficulties you can overcome, the better it pays off.

When you communicate with a potential supplier, here is what you want to find out.
- Price
- MOQ (minimum order quantity - since most non-US companies have never heard of dropshipping, thus most probably would not provide that option)
- Payment terms
- Shipping time (typically 15-60 days, depends on the product)

Because we are talking about dealing with businesses in another country here, we got to be extra cautious. While most companies that you will find on those platforms I provided you last time are legitimate, some might not be. Therefore, it is highly recommended that you get 2 trade references (of a business in your country) from them before committing to the partnership.

Payment terms is another thing to be careful of. Most Chinese exporters would ask you to pay in advance. Use your judgement here, there are no absolute answers. Look ar the trade references and contact them to see it is trust worthy, if you are still unsure or looking at a large quantity, you might want to 1)set up an escrow 2)go visit the business in China.

Yes, visiting China seems a little much at the beginning, but that is how people usually do it. If you decide to do that, schedule several visits at once so you can check out more than one place.

I will elaborate this part a little more next time as sourcing in China is s quite difficult yet rewarding process.

China's foreign reserves surge to record US$818.9b

2006-01-16T14:42:00.000-06:00

China's foreign currency reserves rose 34 per cent last year to a record high US$818.9 billion amid surging exports, state media reported on Monday.

This report indicates a rising trend of foreign businesses importing Chinese produced products and services. The rise in foreign currency reserves will further exacerbate the pressure of RMB appreciation.

Answer to a reader's question- Part 2

2006-01-15T14:40:00.000-06:00

Hi, this time we are going to talk about sourcing.

Sourcing in China can be difficult for several reasons. First, not all companies in China have a website, for those who do, they are either very poorly made and extremely difficult to find and navigate. Most of them have little to none knowledge of Search Engine Optimization and thus it is impossible for you to search for them online. Most frustrating of all for foreigners is that most websites by Chinese companies are written in Chinese, thus you will not be able to understand.

For that reason, in my dad's office situated in China, he hires a team of 4 employees for the sole purpose of sourcing.

Ok, so what can you do? The easier way I suggest you to do is to look with online platforms such as www.globalsources.com and www.alibaba.com. Many Chinese companies are aware of these platforms and are members of it. Other than that, you can purchase trade magazines which are pertinent to the products that you are interested in, many Chinese companies also places Ads on them. If you insist on finding their company's website on search engine, do not look at google or yahoo, instead, look in Chinese search engine such as www.bidu.com and www.sohu.com. However this is not recommended if you do not read Chinese.

You can joint venture will a Chinese to do your sourcing, this method is probably the best one but also hard to implement. Attending tradeshows in China is another great way of sourcing but it may be expensive to start off with.

In the next part, I will talk about what do you have to be careful of when sourcing in China.

Chinese Currency Forecast

2006-01-12T15:51:00.000-06:00

Jan 12 2006 - Peregrine Investment Ltd. in Paris had forcasted a 3% appreciation of RMB in year 2006. As China has experienced a trade surplus for the past 7 years and has gained importance in the world's economy, there is a stronger pressure for RMB (Chinese currency) to appreciate.

Assuming that the forecast is correct, the importing of Chinese products are going to be more and more expensive. Therefore NOW is the best time to take advantage of the business opportunities in China. Act soon before it is too late.

Answer to a reader's question- Part 1

2006-01-12T15:27:00.000-06:00

A reader recently msged me this question:

I am thinking about importing easy low prize products from the asian market to Germany and selling them on ebay. I read your post and your blog where you said you are exactly doing this right now. I would like to get in contact with you to discuss about this. I would be interested in what kind of products do you sell on ebay. Are you willing to share sources and your experience?

Instead of giving him a fish, it is better to teach him how to fish.

First of all, I sell multiple products on eBay and while some of them I obtain it from distributors in the US, I import most of them from China. The main products my business sells includes synthetic gemstone beads, shotglasses, poker equipments and others. While I cannot disclose my source for other products, I can tell you about my Dad's company, which exports synthetic gemstone beads from China. Their website is www.beautyday.com.hk, and some of their products sell really well on eBay.

Since there are SO MANY products that sell well on eBay, it is NOT a good approach to find what has high demand and source for it. It is a much better approach to recognize a list of things you are interested in selling, and then research whether there is a market for those products and finally source for it.

There are many ways of researching whether a product sells well on eBay. The easiest of all is subscribing to the eBay newsletter, which provides tips on what their hottest products are. Other than that, type in keywords of products you think might sell and click on "completed listings", if completed listings (green) are more than incompleted ones (red), chances are it is selling pretty well. eBay also recently launched a "marketplace research" function, but I don't know if it is available on its international sites, you have to check for yourself.

In part 2 of my answer, I will go in depth to talk about finding your source in China, how to approach them, and what to be careful of.

China Business Model 1 - Part B

2006-01-11T15:30:00.000-06:00

Importing the right product

What not to expect?

Many people have the misconception that electronics products and brand names can be found in China for a huge discounted price. WRONG! While it is true that most electronics and brand named products are produced in China, the factories have an agreement with the businesses (i.e. Sony, Microsoft) so they are not allowed to produce more than what the company ordered and can not resell those products. Thus, if you are looking to profit from buying Xbox360 or ipod and resell it here at a huge profit. Sorry, you got no luck.

What can you sell?

Products that do not require much technology or designs are the best products you can obtain from China. For example, one of my dad's business export artificial gem stones from China to all over the world, selling over 100K per month. My dad's partner is in the business of exporting light bulbs, netting 5 million per year. These products are easy to make, not technologically demanding, and the cheap labors in China are good at producing them. The cost of production of these commodities in China is around 80% lower than that in the US, and yet it maintain a good level of quality. (no wonder US lose its jobs abroad) Sure it is not as sexy as an ipod, but hey, they make you good money.

Next time, I am going to talk about researching which products to sell.

Renminbi(RMB) reached new height!

2006-01-09T15:30:00.000-06:00

Renminbi (currency of China) reached new height yesterday, reaching 8.0641. RMB futures also exhibited strong growth, with 1 year NDF reaching 7.7 at one point yesterday.

Since the Central Government of China hopes to fine-tune their exchange rate policies in a gradual manner, a rapid leap is not expected in the near future.

The Chairman of IMF pointed out that China should take measures to increase flexibility of their exchange rate system. Narrowing the gap between RMB exchage rate and its perceived market value will be beneficial to the stable growth of the country and stimulating foreign business investments.

China Business Model 1 Part A

2006-01-08T15:33:00.000-06:00

This is first of the many different business models you can use to profit from the "China Factor". The reason why I cover this first is because this is the model how my dad makes over 2M per year!

Model 1 - Distributing Products from China - Part A (intro)
In this business model, you need to determine a product at which you know there is an existing demand in your country, then, contact factories directly from China. You will buy them in bulk, and then wholesale them to retailers.

In the following parts , we are going to talk about what kind of products should you import, how do you find a reliable supplier, what you should be careful of, what to be avoided and the pros and cons of this model.

Stay tuned for more secrets of China Business Opportunities revealed!

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2006-01-08T13:03:00.000-06:00

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