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Doing Business in China andIndia.

Paul Calver

UKTI Global Value Chain Specialist

Advanced Engineering([email protected])

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What are the KeyKey Issues of Doing

Business in China andIndia

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Doing Business In China/IndiaKey Business Issues

Understanding the Market.

Selecting Your Market Offering.

Developing Your Market Entry Strategy.

Corruption (the Bribery Act). Supply Chain Availability (Technology and Quality).

Intellectual Property Protection.

Where to Locate.

Business and Cultural Differences. Legal Barriers.

Finding a Partner/Getting a Man-on-The- Ground.

Making Money Quickly and Treasury Management.

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Late 1970s no IP protection

Now world class legislation & committed to major IPconventions

Issue has been enforcement improving

Consultation (lawyers)costs nothing

China - Intellectuall Property

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Real IP

Trademarks and logos are an immediate risk first to register

Include practical (non legal) stepsWhat you release & when

Confidentiality agreementsMutual benefit

Who (& how many) you work withStay in touch

China - Intellectuall Property

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China - Intellectual Property

Provided Courtesy of Rouse Rouse 2008

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Military and dual use is restricted.

EU - Regulation 428/2009 applies UK Export Control Organisation.

USA - International Traffic in Arms Regulations:

China - Legal Restrictions - Example

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Patient

Relationship is key

Group-oriented

Complex decision-making

Large meetings

Hierarchical

Contract is not the end of

negotiation Bonding through dinners etc

Focused on employment,technology

Acutely sensitive to face

Impatient

Transaction, not people

Individualistic

Delegation of authority

Small meetings

Egalitarian

Contract is binding

After hours entertainmentlimited

Focused on return oninvestment

Fair play, pride

Business Culture - China

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Business Culture - China

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Meetings may be arranged in advance in writing but should beconfirmed by phone a week before arrival and also on arrival.

Though quite flexible themselves, Indians expect punctuality fromothers, especially the westerners.

Seating may be hierarchical.

Show respect for seniority.

Meetings always commence with some conversation. This is thepart of the getting to know you process.

Indians do not base their business decisions solely on statistics, or

empirical data. They often use personalized and sometimesemotional arguments.

Avoid rushing people into decisions or being condescending.

If terms such as "We'll see", "I will try" or "possibly" are employedthen the chances are that they are saying 'no'

Business Culture IndiaMeetings and Negotiations

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British Indian

Explicit, Direct Implicit, Indirect

Facts & figures Feelings & faith

Eating as a necessity(fast food)

Dining as a social experience(religious rites)

Nuclear family Extended family

Responsibility to self Responsibility to family

Value youth (age is ahandicap)

Age gives status and respect

Individual orientation Group orientation

Independence Interdependence

Tendency for directconflict

Preference for harmony

Task oriented Relationship oriented

Business Culture - India

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Dont Forget the Importance ofKaraoke

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Thank you.

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