Much has occurred over the past year, with stock markets plunging, banks in crisis and governments worldwide having to step in to rescue their ailing financial institutions. Although an international government bailout of taxpayer money appears to have stopped a complete meltdown of the global economic system, there remains no doubt that the consumer boom in the West over the past couple of decades is going to slow down. With many businesses in China geared towards supplying that boom, now is the time to look at practical considerations when managing your business in China.
In this article we will look at businesses on the ground in China, businesses buying from China but based abroad, the implications for the Chinese economy and developments here, and also at other, regional emerging markets and what new opportunities they might offer.
What to look out for on the ground in China:
Make no doubt about it, if you are supplying customers in the United States or Europe, they will be looking to change the balance of their relationship with you. In short, to remain their supplier, they will want you to fund more of their business. That means they will delay paying their invoices, and will extend credit terms, even without asking. You need to ensure that your contracts with them are tight, define credit terms and also define late payment penalties if they fall beyond say, 60 days.
Please email us today for more information about doing business in China.
