Preface

Shen Jueren, Honorary Chairman, China Association of International Trade, Former Vice Minister of the Ministry of Foreign Trade and Economic Cooperation, People's Republic of China

This newly published fourth edition of Doing Business with China has been enriched with plenty of fresh content which will undoubtedly prove a useful guide to business people around the world.

China became an official member of the World Trade Organisation (WTO) on 11 December 2001. China's accession to the WTO not only represents a new era in its opening up to the outside world, but also marks the beginning of a new period of development for the economic exchanges between China and the rest of the world.

The Chinese government has solemnly pledged that it will fully implement all its commitments to the WTO and will abide by the various rules and protocols. To this end, China has made necessary amendments and revisions to the laws and regulations governing its foreign economic and trade activities. Some new laws and regulations have been legislated while those that are not in conformity with the WTO rules have been phased out. All of these will ensure that all WTO rules, treaties and protocols can be fully implemented.

In the meantime, we also request all other members of the WTO community to honour their respective commitments and implement the relevant rules in order to achieve balanced rights and obligations among members .

China's entry into the WTO will certainly provide more opportunities for foreign companies to trade with China, and it will also serve to create a better environment for foreign investments in China. Readers will be able to obtain a detailed understanding of China from this book.

It is my sincere wish that the publication of this book will help people from around the world to deepen their understanding of China's economic regime and foreign economic and trade realities, on the basis of which cooperation for mutual benefit between Chinese and foreign businesses will be further enhanced so as to contribute to the development of world economy and trade.

About the Editors

Jonathan Reuvid

Economist and international business strategist, Jonathan Reuvid has specialized in the development of joint ventures and technology transfers in Northern China since 1984. In 1993 he formed an association with Li Yong, then Managing Director of the Centre for Market and Trade Development (CMTD), to write and publish the first edition of Doing Business with China .

After graduating in PPE at Oxford and service in the Scots Guards, Jonathan Reuvid was employed as economist by the French national oil company, Total, for its newly formed UK subsidiary. From there he moved into investment banking, financial consultancy and corporate planning, focusing on the application of market research techniques to diversification and acquisition strategy.

There followed a series of appointments in industry including Director of European Operations for Associated Spring Barnes Group, the US multinational manufacturer of precision-engineered components .

Since 1989 Jonathan has embarked on a second career in business publishing, initially in trade magazines and then in the editing and writing of a series of international business books, and guides to management, financial practice and business start-ups, all for Kogan Page.

Currently Jonathan Reuvid is series editor for Global Market Briefings , a new Kogan Page series to be supported by websites , focused on the Central and East European States which are Accession Candidates for the EU in 2004. This fourth, expanded edition of Doing Business with China is published as a part of the new series.

Li Yong

Li Yong is a leading expert in market research and marketing in China. His present position is the Deputy Secretary General of China Association of International Trade, which is a national organization in China that advises governments on trade and investment policies, and companies on corporate development strategies. His responsibilities include business development, training of local and foreign business executives, research on key trade and investment issues and corporate development strategies.

After graduating from the University of International Business and Economics, the leading business school in China, in 1986 with a Master's Degree in economics, Li Yong joined the International Trade Research Institute (ITRI) as a researcher of international commodity markets. Between 1988 and 1992, he worked in China Intric Limited, Hong Kong, which was a company specializing in marketing services and research. He was the manager of its Marketing Services Department and was subsequently promoted to Assistant General Manager. His responsibilities encompassed a range of marketing services, including marketing and research services for foreign businesses with interests in China, the promotion of Chinese products to the overseas market and information services for both Chinese and foreign customers.

In October 1992, Li Yong came back to Beijing from Hong Kong and was appointed Deputy Director of the Centre for Market and Trade Development (CMTD), which is a consulting arm of the Chinese Academy of International Trade and Economic Cooperation (CAITEC) of China's Ministry of Foreign Trade and Economic Cooperation (MOFTEC). In 1995, he became CMTD's Director. During his eight-year leadership of CMTD, Li Yong developed CMTD into CAITEC's profit centre. His client base included many blue chip multinationals and international institutions. He has extensive hands-on experiences in a variety of industries and in providing advisory services with different consulting requirements. He joined the China Association of International Trade in 2001. He also holds management positions , as China Director of PMC Consulting, an American firm that specializes in business development strategies in the Asia Pacific area, and as Executive Director of Sino-World Sincerity Advertising.

With his English proficiency and years of working experience with western companies, Li Yong has developed a good understanding of western culture and mindsets , with which he has been successfully advising foreign companies in China on their corporate communications, joint venture negotiations, human resource management, marketing/advertizing campaigns and training programmes. As a part of his consulting effort to improve corporate performances of foreign businesses in China, Li Yong has developed his own set of methodologies in dealing with cultural differences and clashes in the context of joint venture negotiations and management.

In addition to his wide market research and consulting experience, which has generated a network of associates and contacts throughout the leading business centres in China, Li Yong has also been actively involved in seminars and corporate training venues both at home and abroad. At the same time, he is a guest professor at the University of International Business and Economics and the Institute of Economic Management. He has been invited to conduct lectures at Peking University, one of China's most renowned universities, for their executive MBA programmes. His recent lectures at those universities included a variety of subjects such as strategic considerations for Chinese companies investing outside China, changing marketing environments of the pharmaceutical industry after WTO, implications of WTO accession on corporate competitive landscape and strategies of multinational companies in China. For four consecutive years, Li Yong has been teaching business courses, 'Marketing in China' and 'Purchasing from China', at an executive training college that conducts training programmes for foreign business executives and students. One of the research projects he is now involved in is on sustainable foreign trade development strategy for China. Li Yong has been the co-editor and co-author of all four editions of this book Doing Business with China .