Culture

Loads and loads of stores
Night life in China

Not only does China have a rich history, it has a rich culture as well. The traditions and culture of the people are mostly based on myths and superstition. Most of their tourist attractions involve people to touch some stone or statue and make a wish. In one of the temples which we visited, people paid to throw several chinese coins on a tortoise statue. If the coin touches the head of the tortoise, it is believed to bring good luck.

If anyone wants to do business in China, they must understand the culture of the Chinese. The Chinese are particular about "mian zi" (meaning face). Each party should seek to make each other look good in the business world and cannot openly embarrass each other.

Do not be despaired or angry if the shopowners scold vulgarities or shout at you, should you quote a price which they are dissatisfied with. That's the night business life in China. Instead, you will be surprised that being polite and courteous makes the chinese in China more respectable of you. A kind word will dispel anger. This seems true in China. Most of them were shocked when we thanked them or spoke nicely to them. Perhaps, we might be changing the culture in China subconsciously.

Maintain your integrity and honesty when doing business. In China, most of the shops have a little cloth partition. One may think that behind this partition is a little storeroom to keep their stocks. However, the stocks are all laid out in the shopfront already, and the chinese have little stocks. If you see a particular M-sized jeans design hanging on display, that may be their only jeans design on sale. The fact is that many business dealings take place behind the cloth partition. I got a slight glimpse of the area behind the partition. It is laid out with chairs and a table and a few tea equipment. The chinese love to be discreet about their business dealings in China.

Do not be surprised if your product is being sold elsewhere in China the next day. There are many "copycats" in China. Imitation goods are sold in every street and every corner! But this is the reason why foreigners like us are attracted to China. If you do business in China, make sure that you have established a good brand name so that people can differentiate your product from the imitation products. And also make sure that your product cannot be easily copied.

No matter what, China is the new up and rising centre for business activities. If you can survive in China, it is a great feat accomplished.

Policies and tax incentives

The governmental support, to local and foreign business, in the PRD region is very strong. One of the companies which we visited -China South International Industrial Materials City- reflects the strong governmental support. Firstly, the electricity and utility bills in this material city is lower compared to in Hongkong. The government gives assistance to local enterprises. Telephone calls in this area is cheaper than in other places. There is also free parking in the material city. All these governmental incentives will help to attract foreign investors to this area. In Guangzhou, motorcycles were banned so as to prevent motorcycle-burglaries from occurring. A safe and peaceful environment is what will attract foreign investors.

Tax charges are generally cheaper in the PRD region compared to the other parts of China. Based on what Mr Neo, Regional Director for Southern China (IE Singapore), described to us, the laws are very flexible in the PRD region. The taxation policies can be negotiated with the respective governmental authorities, one does not need to stick to law. For example, perhaps a certain amount of screws exported will be taxed accordingly. However, in the PRD, one can negotiate for a less rigid tax paying policy (a fixed amount of tax for any amount of screws exported). Note: One must establish a name for his/her company first!

Learning points

These are some of the learning points which i discovered during the trip:
1. Importance of staying competitive in the market: even as china places a foothold in the economy, they need to stay competitive in order to be a global leader.
2. One's attitude is very important when doing business: you may lack the skills and capabilities for the job, but if your attitude is appealing, you can last long in the business world
3. Quality precedes quantity: China may be one of the world's top production country. However, in order to survive, quality is more important in the long run. Low cost and quantity can only help the business in the short run.
4. Do get help if you need it: It is important to be humble as a businessman, complacency will ruin you.
5. Don't depend on other people's opinion of a market or business environment. It is always wiser to see the place for yourself and give judge the place carefully.
6. When doing business, always look at your business partners' point of view. Think of what kind of value you can offer to him or her. He/she wouldn't be thinking of how to solve your problem, they would be looking out at how you are able to benefit them.
7. Market research is very important. Do not assume that you know the needs and wants of the consumer market very well. You will be surprised.
8. Do not compromise on your values. There may be bribery and corruption in China, but what makes Singaporeans stand out is our integrity and responsibility to fulfil our tasks.

Strategic Location

Being strategically located may be a factor in attracting foreign investors to the PRD. Here is a software park, which is strategically located in the PRD to enhance business operations.

Zhuhai Southern Software Park
This software park is located in Zhuhai because it provides a better environment for the production of software. There are 90+ software companies(both local and foreign companies) located here at present. The place is quiet, clean and scenic- an inviting accomodation area for foreign investors.

Beautiful landscape

Zhuhai Southern Software Park

This software park is also located near 2 universities. These universities provide the future talent pool and expertise for this industry. Also, the cost for the student labour is low, hence a great attraction to foreign investors.

Free accomodation and free education is also provided for foreign investors and their families. Foreign investors can also acquire financial assistance from the zhuhai governmental authorities based on the level of technology of one's production and product. The taxation charge is 15% which is lower than that of shenzhen and guangzhou. Low rental of $30 for foreigners coming to this area for research is also a drawing point for foreign investors.

Apart from all these business incentives to foreign investors, there are a golf course, ferris wheel, commercial banks and a zhuhai international circuit located in the vicinity. These luxury benefits are catered to the interests of foreign investors and serve to attract these foreign investors to the PRD region.

Established infrastructure

The PRD has quite an established infrastructure for the investment of companies. One of the Industrial Cities which we visited was- China South International Industrial Materials City. In this business zone, similar industries were located together. For example, textile industries would be located in the same area, the electronics industries would be located in a separate sector. However, all the various industries would be located in the same industrial zone.

Textile industries located together

You may think how do the various business survive since all the similar business are located together. The environment here is very competitive. The companies have to establish their own distinctive advantage in order to compete with the other similar business. It's the game of "Survivor" over here. Companies that cannot remian competitive will be naturally eliminated.

An industrial city makes it very attractive to foreign investors. They get to compare the prices for a particular good, within the same area, and get the best deal for their own company overseas. Obtaining various resources is also made easy because the industries for various raw materials are organized in a systematic arrangement. There are even little wagons to drive anyone around to tour the various industries and move from place to place.

A mini wagon to bring us on a tour around the Industrial City.

Hongkong-Zhuhai-Macao Bridge: This is the bridge which is being constructed to improve accessibility to each of these regions. This bridge will not only improve transportation and the time to travel to various regions, trade will also increase in these regions. In Zhuhai, a one-hour boat ride is all that is needed to reach HongKong. The ports in the PRD region are more efficient than the other ports in China.

New Baiyun International Airport: The Chinese authorities are embarking on this new construction project in Guangzhou. This new airport will enhance China's attraction as a business hub, in particular the PRD region.

Cheap and abundant resources

Well, most people are aware of the cheap labour in China. You will never guess how "cheap" they are! Each worker is only paid $0.08 for each shirt that they produce! When the tour guide told us to make a guess, none of us guessed that they were paid so little. But the chinese are happy with their wages, and businessmen are happy to have struck such a deal. Infact, many of the factory workers look my age. They live and work in the company. Most of them come from the villages, uneducated, and so have to settle for the low pay. This is why a shirt costs $4 on the average.

However, because of their low education level, companies have to incur costs to train up their workers. Still, the labour quality is better than in Indonesia or Vietnam.

This is Zhu Hai (Pearl Harbour). There are abundant amounts of pearls being harvested from this particular seabed.

Besides labour, China has abundant resources such as water, steel, land etc. As these resources are cheap, they aide in attracting foreign investors into PRD.

Pearl River Delta's scenic beauty

The PRD has several beautiful sceneries and historical sites. Leisure and scenic attractions are an important factor in retaining and attracting foreign businessmen. If foreign businessmen enjoy the environment and can find fun in a foreign land, they will be better able to adapt to China.

Red flowers that blossom in the temperate climate

A visit to the strawberry farm in Pan Yu Qu.

Windows of the World! There are miniature statues of the famous wonders of the world.

There were other attractions that we visited as well, such as the Bee farm, temples and monuments etc. These attractions are vital to the welfare of foreign businessmen who are based in China.