presentation_f_bonnet [Mode de compatibilité]

“Comment travailler avec des
sociétés chinoises".
Frédéric BONNET
Decembre 2010
CCI Auvergne
Eoos China Consultants Beijing
www.eooschina.com
Introduction
• Frédéric BONNET,
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1998 : Diplôme Paristech, arrivee en Chine
1999 : Lafarges Cement Beijing
2000-2003 : ParisTech Shanghai
2003 – on : Eoos China consultants
• Eoos China Consultants
• 2003 SARL Royat; 2004 Bureau Pekin
• Personnel: 6 (2 Francais et 4 Chinois)
– Developpement d’affaire
– Outsourcing comptabilite et declarations fiscales, portage employes
chinois
– Organisation de seminaire et formation professionelles
– Investissements Chinois a l’etranger
Eoos China Consultants Beijing
www.eooschina.com
Le dynamisme Chinois
PUDONG en 1990
Example de grand projet : Capacite de
production d’electicite (GW):
En 2006 : 622
En 2008 : 793 (aug.moy.
11%/year= 85Gw)
Rappel capacite installee en France : 62Gw
PUDONG en 2005
PUDONG en 2008
Eoos China Consultants Beijing
www.eooschina.com
Mises en garde
-Plus de 60 ecritures et plus
de 130 langues
-32 « Provinces »,
administration decentralisees
-Superficie de l’europe
Eoos China Consultants Beijing
www.eooschina.com
2600/ 3j
4300/ 6 j
1600/ 2 j
2800/ 4 j
3000/ 4j
2300/ 3j
Eoos China Consultants Beijing
www.eooschina.com
1400/ 2 j
Vente et BD 1/3
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Information is the key. What about reliability? Misundertanding? Cross check. Size of China territory and diversity:
Culture, education, language, living standard, etc
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Market study / positioning / image / pricing (Kiabi failure)
Introduction of new products or services.
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Question staff reporting – Dupont staff
Information available need to be challenged
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Lack of chamber of commerce, role of professional associations, trade union (issue about definition)
Regulations, or implementation of regulations will be different (waste water treatment) in addition local authorities will use
protectionism / leaders have personnal ambitions and compete with each other (China Daily promotions, taxi
specifications, Maglev, etc).
True for all aspects we will mention such as: tax, set up companies, etc could have more or less help, exist some special
local bureau to help investors
On foreign investors side, lack of knowledge & myth : forget good business practices (internet fake offerszhengzhou) china is not an “Eldorado”.
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Time: takes 2 years to finalize a Trade mark registration
Face-reputation : trust, develop network and relations
Can SME have a national ambition?
Eoos China Consultants Beijing
www.eooschina.com
Vente et BD 2/3
Negociation et pratiques de vente
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Negotation Tactics
• Multiple negotiations & negotiators, time management
• Physical isolation: from its own company and actual decision makers,
• Misinformation
• Use of Alcohol
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Vision of Negociation
• Stregnh vs « harmony » ; vision of Time ; action vs tactic : not much hereos in Chinese
history – Song Wukong & Gals
• Value of signed contract – law and spirit of the law – K.Marx
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Guanxi
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Relations/network/debts/trust
Personnal datas or contacts (Secretary needs 1 hour to make a call looking for a “friend”) who want to take risks?
Impact in the company
• Ethic (SIMBA & Judith)
• Staff level : info is power - lack of report/datas ; Customers ownership (package if laid off
staff)
• Company level : commission, « hongbao », fake invoices (fapiao)
• Commissions – corruption (bank info – plane movie – teachers day – gift BoB – file
evaluation)
Eoos China Consultants Beijing
www.eooschina.com
Vente et BD 3/3
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Chinese business practices
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subcontract with other producers (electric vehicule)
Chinese factory is for Compliance with US stock market, but produce in bangladesh,
Usual to find brochure with your factory/company pictures or the “projet factory”. Suppliers
often wait for downpayement to buy equipment
how to control distribution netwrok/agent? Bags with your logos
Value of contract? Avic or Sign illegal contracts
Customer services
Impact of those behaviour:
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need to check everything – get lost
lawyer expenses
Need to check business licence, financial background, etc
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Note that Chinese companies have the same problems, distrust among themselves,
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Suggest to have a Chinese approach in china …& Often need to take temporary
measures
Eoos China Consultants Beijing
www.eooschina.com
Ressources Humaines: Facteur Cle de Succes
• 2008 Labour law - Strongly protect employees
– Hours, vacations, pension 55 to 65 age de la retraite en europe.jpg
– 2 years CDD (twice) or CDI – end of contract must be explained - 1
month/year compensation – compulsory training if not qualified
– With or without contract – professionnal expenses
– « employee file» : FESCO CIIC – compulsory for BR
– Hukou « familly book »
– Social coverage linked to Hukou (target 2020, 100% pax covered)
– IIT– chinese vs foreigners 业务招待费 IIT.doc
– Strenghten role of “trade union” – compulsory if more than 25 pers
– Discimination is “normal”
– Cv: health condition, political status, motto, “cheat”
– New suggestion to face crisis “Assemblee populaire” – 35 hrs/week, or
more vacation
Eoos China Consultants Beijing
www.eooschina.com
Regles generales pour la gestion d’equipe
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Harmony & Loosing face: theory and practice!!! Definition? Which chinese culture? Wumin story – FH & SOE mngt: he is used to reorganize
– importance of Mediation, R.Pich
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Chaos is not solved with method, it is solved with Harmony : traffic light, say « my mistake » ,
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Truth Vs courtesy : Be very clear to subordinates what you (the leader) expect, explain and explain again Select one or two people to “count
on” for information. “Shanghai mess »
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Hierarchy: -usual need several call to get 1 answer / asst need to evaluate
Initiative & Empowerment can work in China but…slowly , clearly, pedagogy. Attention empowerment can be seen as a weakness.
Western Proverb – “The early bird gets the worm.”
Chinese Proverb – “Qiang da chu tou niao”
(枪打出头鸟) “The first bird out gets shot.”
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not being held responsible, no written docs, risk taking (too less or too much)
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Target 90/10 – Hongqiao airport – constant maintenance work – quality control music box
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Intermediation
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Who to recruit to lead the company? Chinese vs foreigner (quota) adv/disadv (language-culture-initiative-report-trust) Isolation of expat (far from HQ)
Eoos China Consultants Beijing
www.eooschina.com
Status des entreprises etrangeres en Chine
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B.rep. limitation of foreign employees/increasing controls
JV: difficult to get agreement, IPR issues, closing difficult
WOFE, list of “business activities”, expected, authorized or forbidden, no legal
minimum registered capital, case by case evaluation – distrust of foreign SME protect Chinese customers (fear bankrupt or low quality products) or protect chinese
companies. Big is beautiful (companies introductions always give Sqm)
Holding company – HK - difficulties to change B.Licence/transfer prices
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Open a legal entity
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Specificity of Business licences in china: need 1 for each activity. Technical, professionnal
requirements, $$, etc – cf logistics
Changing Regulation
Implemention of the law is flexible (China is a decentralized country, environment protection,
officers training...) - guanxi - HR?
Processus is long, expensive and « not logical »: 1 - Need an office 2 – need staff…
Usual behaviour in “public services”. List of documents, unpublished new
requirements (visa-insurance/nationalities, bank, labour bureau, etc), “evaluation of
employees”
Eoos China Consultants Beijing
www.eooschina.com
Status des entreprises etrangeres en Chine
Eoos China Consultants Beijing
www.eooschina.com
Pour resoudre les problemes l’harmonie est plus efficace que
les reglements
Eoos China Consultants Beijing
www.eooschina.com
Faites attention aux premieres impressions
soyez bien accompagne
Eoos China Consultants Beijing
www.eooschina.com
conclusion
Eoos China Consultants Beijing
www.eooschina.com