acbc sme passport guide

ACBC SME PASSPORT

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CONTENTS

Australian SMEs and the Chinese Market 6

Industry Sectors in China 12

Import and Export 12

Event and Marketing 13

Financial Services 13

Government Relations 14

Legal Services 15

Logistics 15

Accounting 16

Tax 16

Recruitment 18

Important Contacts 19

AustCham 19

Austrade 20

China Council for the Promotion of International Trade (CCPIT) 22

Ministry of Commerce (MOFCOM) 22

State Administration for Industry and Commerce (SAIC) 23

Australian State Offices for Trade and Investment 23

NSW Government Trade and Investment Office 23

QLD Government Trade and Investment Office 24

SA Government Commercial Representative 24

VIC Government Business Office 25

THE AUSTRALIA CHINA BUSINESS COUNCIL To find out more about ACBC, please visit www.acbc.com.au

National Secretariat

Level 13, Gateway Building 1 Macquarie Place Sydney 2000 Tel: +61 2 9247 0349 Fax: +61 2 9247 0340 Email: [email protected]

SA

Level 15, 45 Pirie St Adelaide SA 5000 Tel: +61 8 8210 1252 Fax: +61 8 8210 1234 Email: [email protected]

NSW

Level 13, Gateway Building 1 Macquarie Place Sydney 2000 Tel: +61 2 9247 0349 Fax: +61 2 9247 0340 Email: [email protected]

VIC

Level 1, 172 Bouverie Street Carlton VIC 3053 Tel: +61 3 9347 3939 Fax: +61 3 9347 7272 Email: [email protected]

NT

GPO Box 2769 Darwin, 0801 Tel: +61 8 8927 0061 Fax: +61 8 8927 0125 Email: [email protected]

WA

Level 8, 235 St Georges Tce Perth WA 6000 Tel: +61 8 9263 4888 Fax: +61 8 9263 7188 Email: [email protected]

QLD

Suite 154, 4/16-18 Beenleigh Redlad Bay Road Loganholme QLD 4129 Tel: +61 7 3102 4094 Fax: +61 7 3112 6838 Email: [email protected]

Shanghai, China

567 Wei Hai Rd Shanghai 200041 Tel: +86 21 6288 6169 Fax: +86 21 6288 6776/6126 Mobile: +86 138 168 32788 Email: [email protected]

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WA Government International Trade and Investment Office 26

Intellectual Property Protection 26

Chinese Trademark Office 26

State Intellectual Property Office 26

Customs and Quarantine 27

General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) 27

General Administration of Customs 27

Foreign Affairs, Embassies and Consulates 27

Embassy of Australia 27

Australian Consulate General 28

Ministry of Foreign Affairs 28

Finance, Taxation and Accounting 29

Certified Practising Accounting Australia Representative 29

National Audit Office of China 29

The People’s Bank of China 30

Law and Justice 30

Ministry of Justice 30

National Bureau of Corruption Prevention 30

Travelling to China 31

Chinese Culture and Business Etiquette 32

Chinese Dialling and Area Codes 35

Chinese Public Holidays 36

Useful Phrases 37

AUSTRALIA’S SMEs & THE CHINESE MARKET

CHINA: QUICK FACTS

INFLATION

CURRENCY Yuan (RMB)

Source: Australian Department of Foreign Affairs, 2013

AUSTRALIAN IMPORTS FROM CHINA

A$ 44.5 BILLION

GDP/GDP PER CAPITA

US$ 8 939 billion/ US$ 6 569

AUSTRALIAN EXPORT TO CHINA

A$ 78.1 BILLION

POPULATION 1.354 BILLION

OFFICIAL LANGUAGE Mandarin

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AN EMERGING MARKET With the rise of China’s middle class, a market with great potential is emerging. According to HSBC, the average salary in China is set to increase seven-fold in the next two decades making way for an economy which will become more domestically driven by consumption rather than exports. This will give Australian SMEs the impetus to enter the market and access new and exciting markets.

China’s wealth and prosperity has long been concentrated in the eastern and southern regions, especially along coastal regions. The four wealthiest municipalities are Beijing, Tianjin, Shanghai and Chongqing.

The three provinces with the most prosperity are:

• Zhejiang Province (Eastern China); • Jiangsu Province (Eastern China); and • Guangdong Province (Southern China).

CHINA’S 4 WEALTHIEST MUNICIPALITIES 1. Beijing2. Tianjin3. Shanghai 4. Chongqing

CHINA’S 3 WEALTHIEST PROVINCES 1. Zhejiang2. Jiangsu 3. Guangdong

AREA9,561,000 sq km

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Reducing wealth disparity is a key priority in China’s current Five-Year Plan. The Central Government plans to improve the economic prosperity in western China by increasing urbanisation and social development. Commitments to increase the minimum wage and improve social welfare security are also aimed at reducing the urban-rural gap and improving equal income distribution.

CHINA’S FIVE YEAR PLAN (2011 – 2015)China’s Five Year plan is a national strategic planning process that sets the social and economic goals, strategies and targets for the country. The Five Year Plan brings about an array of implications for businesses, and an understanding of the Five Year Plan is beneficial for SMEs wishing to do business with China.

KEY PRIORITIES OF THE FIVE YEAR PLAN AND THEIR POTENTIAL IMPLICATIONS ON YOUR BUSINESS (KPMG, 2011) Sustainable Growth and Domestic Consumption

Stronger focus has been placed on achieving social as well as economic targets. SMEs should consider how their business strategy can contribute towards China’s long-term prosperity and pursuit of higher quality growth.

Moving Up the Value Chain and Scientific Development

Emphasis on new industries such as Biotechnology, New Materials, New IT, High End Manufacturing and R&D could open up new investment opportunities for SMEs.

Reducing Wealth Disparities

The goal to develop China’s western regions is likely to open up more opportunities for SMEs, and may impact on the direction of SMEs businesses, logistics and operational cost. SMEs should also carefully assess their HR strategies in light of the Plan’s commitment to improve minimum wage levels and pension provisions.

Environmental Protection and Energy Efficiency

SMEs should consider how they can invest in energy saving measures and help in meeting local level targets for energy reduction and green energy adoption.

TOP 10 CITIESAccording to Forbes, the top 10 cities in China with the strongest competency and potential for business are:

RANK CITY

(PROVINCE)TALENT INDEX

CITY SIZE INDEX

CONSUMPTION INDEX

1Guangzhou

(Guangdong) 0.9444 0.9838 0.8298

2Shenzhen

(Guangdong)0.6795 0.9756 0.9123

3 Shanghai 0.953 1 0.8596

4Nanjing

(Jiangsu)1 0.9087 0.8333

5Wuxi

(Jiangsu)0.665 0.9017 0.7702

6Hangzhou (Zhejiang)

0.9085 0.9366 0.814

7 Beijing 0.9829 0.993 0.793

8Ningbo

(Zhejiang)0.6812 0.8878 0.8123

9Suzhou

(Jiangsu)0.7427 0.9594 0.8667

10Foshan

(Guangdong)0.4778 0.8956 0.7316

Source: Forbes China 2013

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THREE STEPS TO KICK START...

Before making a decision, it is important to consider:

• your resources and past experience; • the amount of time committed; • host market commercial environment; • product standards in the market; • credibility of potential business partners.

A due diligence check on potential business partners is beneficial for a cooperative working relationship and would help to prevent future disputes.

China has many different regions, each with its unique economic and social characteristics. Big cities such as Beijing, Shanghai, Guangzhou are good starting points but major business centres are not the only options.

Choose your destination by considering your transportation and logistical needs, your product type, demand and government regulations.

A visit to China can provide great insight into the business climate and the potential of a region as the market.

SMEs can start with fostering a sales network through regional agents or distributors who can assist in:

• keeping track of policy and regulation updates; • collecting market data; • quickly responding to changes; • breaking down institutional, language and cultural barriers.

INDUSTRY SECTORS IN CHINA

IMPORT AND EXPORT China is one of Australia’s largest trading partners and a popular destination for Australian SMEs wishing to expand their businesses. According to HSBC, 39% of SMEs conduct trade with China. Rising demands from China’s growing middle class will continue to attract more Australian SMEs to China, and contribute towards a better bilateral trade relationship between the two countries.

When importing from China, SMEs need to ensure that the goods and services meet Australian customs and quarantine standards. The Australian government may provide concession, grants and various forms of assistance to eligible exports.

China has expanded their role and influence in international trade as showcased by the Shanghai Free Trade Zone. However, pending the Australia-China Free Trade Agreement (FTA), some restrictions still apply to Australian exporters. Market access and quarantine regulations are key barriers for Australian exports, especially for the agriculture and food sectors. Since becoming a member of

THINK THROUGH

PICK A LOCATION

FIND A LIASON

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the World Trade Organisation (WTO), China has reduced their base line tariff to around 15%. Product specific tariff and taxes vary and can be accessed through the Chinese General Administration of Customs.

Exporters are encouraged to conduct comprehensive market research and develop an understanding of Chinese custom procedures before exporting.

The Australian Trade Commission (Austrade), an Australia Government agency, and the Australia China Chamber of Commerce (AustCham), a member-based business chamber, provide information and assistance to Australian businesses operating in or looking to export to China. Their offices can be found in most major commercial hubs in China.

EVENT AND MARKETINGEvents

Event planning services are abundant in China, especially in major cities. Both local and international companies offer a range of services from banquets to business conferences.

Marketing

Rise in consumerism and e-commerce has transformed marketing into a strategic tool, with social/digital media as the key platform. SMEs should respect local advertising regulations and align their marketing strategies with Chinese culture imperatives in order to connect with Chinese consumers. Doing things the ‘Chinese Way’, such as using Chinese online channels (Youku, Renren, Baidu, Weibo, and WeChat), using real time on-site chat support, having a Simplified Chinese landing page and providing local contact information can go a long way.

FINANCIAL SERVICES Banks dominate the Chinese financial system, providing the private sector with credit amounting to about 128% of GDP in 2012.

People’s Bank of China functions as the central bank of China without significant direct commercial banking functions. The five largest commercial banks in China control around half of the total assets in the banking industry. These banks include: Bank of China (中国银行), Agricultural Bank of China (中国农业银行), China Construction Bank (中国建设银行), Industrial and Commercial Bank of China (中国工商银行), and Communication Bank of China (中国交通银行).

Joint equity banks and other financial intermediaries such as trust companies, rural credit cooperatives and urban credit cooperatives also play an important role in China’s financial sphere. These entities operate under different rules to banks and are regulated by the China Banking Regulatory Commission.

Regulations on foreign banks operating in China are easing. Foreign financial institutions have been permitted to provide foreign currency services to Chinese enterprises and individuals, and have been permitted to provide local currency business to all Chinese clients since the end of 2006.

When China entered the WTO, geographic restrictions placed on RMB-denominated business was phased out in four major cities—Shanghai, Shenzhen, Tianjin and Dalian. Since December 1, 2002, foreign-funded banks have been allowed to undertake RMB-denominated business in Guangzhou, Zhuhai, Qingdao, Nanjing and Wuhan.

GOVERNMENT RELATIONS The Government of China operates on three levels: national, provincial and local. At a national level, the Central Committee and the Political Bureau oversee the direction and pace of China’s development. The President of China can serve a maximum of two five-year terms. The President appoints a Premier who serves as the head of the State Council which is the country’s key policy making body and manages 29 ministries and commissions such as the Ministry of Education and the Ministry of Commerce.

The Chinese Government has a strong relationship with Chinese businesses. Businesses and the government cast mutual influence on one another through State-Owned Enterprises, and many business leaders also hold important positions within the Chinese Government. However, economic development and globalisation has led to a shift away from State-Owned Enterprises, and have given private businesses and foreign owned firms a stronger influence in the Chinese business landscape. Bureaucratic measures and transparency issues that may impede the process of doing business in China are also easing.

Australia and China have an enduring diplomatic and trade relationship. Bilateral trade in resources and commodities has helped both countries to strengthen their economic prowess. Exchange in tourism, art, education, skills, technology and infrastructure has also fulfilled mutual interests and is paving a road for a more innovative and sustainable future.

Utilising Australian Government assistance channels, such as through Austrade, are a useful means to build relationships at a high level by using Government to Government engagement as a platform. The Australian government offers a range of grants and assistance to SMEs working with or in China. The Australia-China Agricultural Cooperation Agreement, administered by the Department of Agriculture, Fisheries and Forestry is an example of one such grant which assists agribusiness seeking to create cooperative relationships with China. For more

information, please visit www.business.gov.au

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LEGAL SERVICESThe Chinese legal environment is complex. Many aspects of local laws, enforcement and penalties differ to what Australians are familiar with. The Chinese legal system draws influence from Civil Law. The Constitution is the highest level of authority in China. It has been improved over time to better safeguard civil rights of its citizens. Statutes are the main source of law in China. Growth in international trade and investment has led China to change their commercial laws to meet international standards. Amendments have been made to incorporate China’s international treaty obligations such as those within the WTO. The primary function of the judiciary is law enforcement. Case law and precedents do not have a persuasive effect in China’s legal environment.

The court system comprises of county level Basic People’s Courts which hear small civil and criminal matters of first instance; Intermediate People’s Courts which hear appeals from the Basic People’s Courts, indictable offences and matters involving foreign parties; Higher People’s Courts; and the Supreme People’s Court which is the highest court of appeal in China. Opportunities for appeals are limited. Specialised People’s Courts (e.g. military courts) and the People’s Procuratorates also form part of the Chinese judicial system.

When doing business in China, it is important to seek professional legal advice when entering into any contracts. Business disputes generally fall within the ambit of civil or commercial dispute, but may sometimes be classified as a criminal issue. Penalties can be severe.

Negotiation is the most common and practical method of dispute resolution. When negotiating with Chinese counterparts, emphasis is often placed on preserving business relationship. All court proceedings in China are conducted in Chinese and foreign lawyers and firms cannot litigate in China.

LOGISTICSChina’s vast geographic scope and the growing volume of domestic and international trade make logistics an important but complex part of the business process. China is linked by over 74 100 km of major highways, 16 major ports, 91 200km of railways and more than 500 airports. However, considering China’s large land size, these routes are yet to satisfy China’s demand for urban and regional accessibility. Lack of sufficient infrastructure, road tolls and safety measures are some barriers that continue to challenge Australian businesses in China.

This growing demand for logistics infrastructure and services continue to draw international transport and logistics providers to China.

ACCOUNTING In 2006, the Ministry of Finance of the PRC introduced a set of Accounting Standards for Business Enterprises (ASBEs). The ASBEs is largely based on the International Financial Reporting Standards, bringing China more in line with the rest of the world. Since 2007, all PRC listed companies are required to comply with the ASBEs. Other PRC enterprises are encouraged to apply the ASBEs, or make efforts to improve the transparency of company finances and compliance with international standards.

TAXThe Enterprise Income Tax (EIT) applies to SMEs doing business in China. The EIT includes a range of taxes such as turnover tax (VAT & Business Tax), resource tax, and land appreciation tax and stamp duty. Branch profit tax, excess profit tax and alternative minimum tax are not levied in China. The State Administration of Taxation (SAT) is the key body responsible for tax collection and compliance. The SAT is replicated at provincial and local levels by local tax bureaus. Tax incentives apply to high-tech & R&D oriented businesses. Incentives may also be geographically based to promote R&D in a certain location. The Chinese equivalent to Australia’s GST is VAT and Business Tax. These are levied on sales of goods and services and the transfer of intangible items. The VAT & Business Tax system is under transition to resolve double taxation issues arising from the indirect tax system.

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CHINA QUICK FACTS FOR COMPANIES

Corporate income tax rate 25%

Branch tax rate 25%

Capital gains tax rate 25%

Basis Worldwide

Participation Exemption No

LOSS RELIEF

Carryforward 5 Years

Carryback No

Double taxation relief Yes

Tax consolidation No

Transfer price rules Yes

Thin capitalisation rules Yes

Controlled foreign company rules Yes

Tax year Calender year

Advance payment of tax Yes

Return due date Within 5 months of the end of the tax year

WITHHOLDING TAX

Dividends 10%

Interest 10%

Royalties 10%

Branch remittance No

Capital tax No

Social security contributions Up to 40% of employee base salary

Real estate tax 1.2 on cost or 12% on rental value

Deed tax 3% - 5%

Land appreciation tax 30% - 60% of gains on transfer

Business tax 3% - 20%

VAT 17%

Consumption tax 3% - 56%

Source: Deloitte 2013

RECRUITMENTDespite China’s vast and diverse population and rich pool of human capital, recruitment and human resources management still remain a key challenge for SMEs.

The European Union SME Centre has identified several human resources challenges in China. These include:

• Foreign companies cannot hire Chinese citizens directly. Special HR management agencies act as intermediaries in the recruitment process. Foreign companies are also held to a higher standard of legal compliance than domestic firms. Strict criteria apply to firms wishing to hire foreign employees. The process of obtaining working permits is complex and varies for different regions. China’s contract employment system also makes it difficult for employers to dismiss employees.

• There is a shortage of talent in China, especially in areas of marketing, sales, technology, engineering and professional services. Only 10% of applicants for jobs in these sectors hold sufficient qualification. Difficulties surrounding background checks on job seekers also undermine the talent selection process.

• Retention is another key challenge. A survey of 19 industries in China showed that the average employee turnover rate for privately-owned companies in Chins for 2010 was 18.5%. SMEs face strong competition from larger international corporations as Chinese employees highly value the prestige and branding of larger companies.

• Different culture and business etiquette makes it difficult for foreign firms to manage Chinese employees and cross-cultural teams. Behaviour differences relating to assertiveness and accountability presents a prevailing challenge for foreign employers to overcome.

• Fringe benefits are an important part of the Chinese remuneration system and can be up to 40 – 65% of total compensation. China’s commitment towards improving wealth disparity is also likely to increase labour cost. SMEs must take this into account when calculating labour cost.

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IMPORTANT CONTACTS

AUSTCHAMAustCham is a member-based organisation that provides representation of Australians and Australian businesses in China. AustCham provides comprehensive information about doing business in China, ranging from the Chinese legal environment to business etiquette.

Through working groups and networking events, AustCham aims to promote Australia and China’s business relationship and more importantly lead Australian business growth in China. Working groups such as the Financial Services Working Group create a platform for Australian and Chinese businesses and government representatives to share information and learn from each other in order to build on mutual interests and benefits.

Beijing

E Floor Office Tower Hong Kong Macau Centre (Swissotel) 2 Chaoyangmenbei Dajie Beijing 100027 Tel: +86 10 6595 9252 Fax: +86 10 6595 9253 Email: [email protected] Website: www.austcham.org

SHOW THIS TO YOUR TAXI DRIVER:

AustCham Beijing 中澳商业会北京市朝阳门北大街2号港澳中心瑞士酒店办公楼E楼

Shanghai

Suite 1101B Silver Court 85 Taoyuan Road Shanghai 200021 Tel: +86 21 6248 8301 Fax: +86 21 6248 5580 Email: [email protected] Website: www.austchamshanghai.com


AustCham Shanghai 中澳商业会上海市卢湾区桃源路 85号永银大厦1101B室

Fujian

2-56 Hubinnan Road, Xiamen Fujian 361004 Tel: +86 59 2239 6711 Fax: +86 59 2239 7929 Email: [email protected] Website: www.AustCham-Fujian.org

Hong Kong & Macau

Room 301-2, Floor 3, Lucky Building 39 Wellington St, Central Hong Kong Tel: +852 2522 5054 Email: [email protected] Website: www.austcham.com.hk

Guangzhou

Room 1714-15, Main Tower Guangdong International Building 339 Huan Shi Dong Road, Guangzhou, 510098 Tel: +86 20 2237 2866 Fax: +86 20 8319 0765 Email: [email protected] Website: www.AustCham-southchina.org

AUSTRADEAustrade is a Government body that facilitates international trade and investment. Austrade provide businesses with practical information about exporting from Australia and buying from Australia, investing in Australia and education and tourism services in Australia. Austrade’s detailed coverage of country profiles, export strategy, assistance and grants, and successful stories represent a glimpse of the kind of guidance Austrade offers to exporters and other businesses. First time exporters and investors are encouraged to consult Austrade before going abroad. Austrade also holds events around Australia and internationally to promote international trade and investment.

For more information about Austrade, please visit www.austrade.gov.au

Beijing

21 Dongzhimenwai Street Sanlitun, Beijing 100600 Tel: +86 10 8532 8686 Fax: +86 10 6532 4606


Austrade Beijing 澳洲商务署北京三里屯 21 东直门外大街

Shanghai

2101 CITIC Square 1168 Nanjing Road West Shanghai 200041 Tel: +86 21 6103 5656 Fax: +86 21 6321 1222


Austrade Shanghai 澳洲商务署上海南京西路1168号中信泰富广场2101室

2221

Guangzhou

12/F Development Center 3 Linjiang Dadao, Zhujiang Xincheng, Guangzhou 510623 Tel: +86 20 2887 0188 Fax: +86 20 2887 0201

Hangzhou

Suite 5F-J, Zhongtian Mansion 173 Yu Gu Road, Hangzhou 310007 Tel: +86 571 8517 3529 Fax: +86 571 8763 1984

Hong Kong & Macau

24 Floor Harbour Centre 25 Harbour Road Wanchai Hong Kong Tel: +852 2588 5300 Fax: +852 2827 4145 Email: [email protected]

Kunming

Room 2202, Hongta Mansion 155 Beijing Road, Kunming Yunnan 650011 Tel: +86 871 356 1002 Fax: +86 871 356 1020

Nanjing

Suite 1163, World Trade Centre, Jinling Hotel 2 Han Zhong Road, Nanjing Jiansu 210005 Tel: +86 25 8471 1178 Fax: +86 25 8470 1068

Qingdao

Room 1001, Crown Plaza 76 Middle Hong Kong Road Qingdao 266071 Tel: +86 532 8575 3585 Fax: +86 532 8577 8960

Shenyang

Room 2604, level 26, Office Tower L’Avenue 10 Huigong Street Shenyang Tel: +86 24 2278 8269 Fax: +86 24 2278 8280

Shenzhen

Room C, Level 21, Shenzhen Development Bank Building 5047 Shennan Dong Road, Shenzhen, Guangdong 518001 Tel: +86 755 6135 2118 Fax: +86 755 6135 2135

Wuhan

Room 1006, New World International Trade Tower II 566 Jianshe Road, Wuhan Hubei 430022 Tel: +86 27 8548 6700 Fax: +86 27 8576 0026

CHINA COUNCIL FOR THE PROMOTION OF INTERNATIONAL TRADE (CCPIT)The CCPIT comprises companies and organisations representing the economic and trade sectors in China. The aim of the CCPIT is to promote foreign trade and technological cooperation. For more information about the CCPIT please visit www.ccpit.org.cn

Beijing

1 Fuxingmenwai Street Beijing 100860 Tel: +86 10 8807 5769/5729 Fax: +86 10 6803 0747 Email: [email protected]


CCPIT Beijing 中国国际贸易促进委员会北京复兴门外大街1号

Shaoxing

1 Shengli Road (E), Shaoxing Zhejiang 312000 Tel: +86 575 8512 4189 Fax: +86 575 8513 2580

MINISTRY OF COMMERCE (MOFCOM)

Beijing

2 Dong Chang’an Avenue Beijing 100731 Tel: +86 10 5165 1200-612/623/613 Fax: +86 10 6567 7512 Website: www.english.mofcom.gov.cn


MOFCOM Beijing 中华人民共和国商务部北北京东长安街2号

2423

STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE (SAIC)SAIC is responsible for market regulation and supervision. Its key functions include consumer protection, trademark protection and ensuring fair competition within the market.

Beijing

8 Sanlihe Dong Road, Xicheng Beijing, 100820 Tel: +86 10 6801 0463; 6801 3447 Fax: +86 10 6801 0463; 6801 3447 Email: [email protected] Website: www.saic.gov.cn


SAIC Beijing 中国国家工商行政管理总局北京西城区三里河东路 8号

AUSTRALIAN STATE OFFICES FOR TRADE AND INVESTMENTThe Australian State Offices for Trade and Investment play a primary role in fostering the trade relationship between various Australian States and China. State trade and investment offices provide support to Australian businesses across diverse sectors.

NSW GOVERNMENT TRADE AND INVESTMENT OFFICE

For more information about the NSW Trade and Investment Office, please visit www.business.nsw.gov.au

Shanghai

Unit 2208, CITIC Square, 1168 Nanjing West Road, Shanghai 200040 Tel: +86 21 5292 8833 Fax: +86 21 5292 5557 Email: [email protected]


NSW Trade and Investment Office 上海南京西路1168号中信泰富广场2208室

Guangzhou

Unit D, Level 10, Development Centre 3 Linjiang Dadao, Pearl River New City, Guangzhou, 510623 Tel: +86 20 3785 3009 Fax: +86 20 3785 0037 Email: [email protected]

QLD GOVERNMENT TRADE AND INVESTMENT OFFICE

For more information about the QLD Trade and Investment Office, please visit www.export.qld.gov.au

Beijing

Room 1512, Level 15, Yintai Office Tower C 2 Jiangguomenwai Ave, Chaoyang Beijing 100022 Tel: +86 10 6563 7830 Email: [email protected]


QLD Trade and Investment Office, Beijing 北京朝阳区建国门外街 2号银泰中心 15层 1512室

Shanghai

Room 3709-3710, CITIC Square 1168 Nanjing West Road, Jing’an Shanghai, 20004 Email: [email protected]


QLD Trade and Investment Office, Shanghai 上海静安区南京西路1168号中信泰富广场 3709-3710室

Guangzhou

Unit 1303, North Tower, World Trade Centre 371 Huanshi East Road Guangzhou 510095 Tel: +86 20 8767 8400 Email: [email protected]

SA GOVERNMENT COMMERCIAL REPRESENTATIVE

For more information about the SA Commercial Representative, please visit www.sagov.org

Shanghai

Room 3203, Level 32, Huaihai Plaza 1045 Huaihai Middle Road Shanghai 200031 Tel: +86 21 6473 2323 Fax: +86 21 6415 5867 Email: [email protected]


SA Commercial Representative Shanghai 上海淮海中路1045号淮海国际广场 32层 3203室

2625

Jinan

Room 2115, Level 21, Liangyou Fulin Hotel 5 Luoyuan Street, Jinan 250063 Tel: +86 531 86016567/8 Fax: +86 531 8601 6569 Email: [email protected]

VIC GOVERNMENT BUSINESS OFFICE

For more information about the VIC Business Office, please visit www.invest.vic.gov.au

Beijing

Unit 2, Level 2, Office Tower C2 The Towers, Oriental Plaza 1 East Chang An Avenue, Dong Cheng , Beijing, 100738 Tel: +86 10 8515 3166 Fax: +86 10 8518 2080


VIC Business Office Beijing 北京东城区东长安街 1号东方广场 C2楼 2层 2单元

Shanghai

Suite 620, Shanghai Centre 1376 West Nanjing Road Shanghai, 200040 Tel: +86 21 6279 8681 Fax: +86 21 6279 8685


VIC Business Office Shanghai 上海南京西路 1376号上海商城 620室

Chengdu

Room 1738, Level 17, Raffles City Tower 2 3 Section 4, South Renmin Road, Wuhou, Chengdu 610041 Tel: +86 28 6511 8108 Fax: +86 28 6511 8107

Nanjing

Suite 1164, Level 11, World Trade Centre, Jinling Hotel 2 Hanzhong Road, Nanjing 210005 Tel: +86 25 8470 1231 Fax: +86 25 8470 9821

WA GOVERNMENT INTERNATIONAL TRADE AND INVESTMENT OFFICE

For more information about the WA International Trade and Investment Office, please visit www.dsd.wa.gov.au

Shanghai

Tel: +86 21 5292 5899 Fax: +86 21 5292 5889 Email: [email protected]

Hangzhou

Tel: +86 571 8795 0267 Fax: +86 571 8795 0295 Email: [email protected]

INTELLECTUAL PROPERTY PROTECTIONCHINESE TRADEMARK OFFICE

The Chinese Trademark Office is a part of SAIC that deals with trademark registration, regulation and protection.

Beijing

1 Chama Nanjie Xicheng District, Beijing Tel: +86 10 6802 7820 Fax: +86 10 6801 3623 Website: www.saic.gov.cn


Chinese Trademark Office Beijing 中国国家工商行政管理总局北京西城区茶马南街 1号

State Intellectual Property Office Beijing

6 Xitucheng Lu Jimenqiao Haidian District Beijing 100088 Tel: +86 10 6208 3114 Website: english.sipo.gov.cn


State Intellectual Property Office 中国国家知识产权局北京海淀区蓟门桥西土城路6号

2827

CUSTOMS AND QUARANTINE GENERAL ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE (AQSIQ)

Beijing

9 Madian East Road Haidian District Beijing 100088 Email: [email protected] Website: english.aqsiq.gov.cn


AQSIQ Beijing 国家质量监督检验检疫总局北京海淀区马甸东路9号

GENERAL ADMINISTRATION OF CUSTOMS

Beijing

6 Jianguomennei Avenue Dongcheng District Beijing 100730 Website: english.customs.gov.cn


General Administration of Customs Beijing 中国海关总署北京东城区建国门内大街6号

FOREIGN AFFAIRS, EMBASSIES AND CONSULATESEMBASSY OF AUSTRALIA

Beijing

21 Dongzhimenwai Street, Chaoyang, Beijing 100600 Tel: +86 10 5140 4111 Fax: +86 10 5140 4230 Email: [email protected] Website: www.china.embassy.gov.au


Embassy of Australia 澳大利亚驻华大使馆北京朝阳区东直门外大街 21号

AUSTRALIAN CONSULATE GENERAL

Shanghai

Level 22 CITIC Square 1168 Nanjing Xi Lu Shanghai 200041 Tel: +86 21 2215 5200 Fax: +86 21 2215 5252 Email: [email protected] Website: www.shanghai.china.embassy.gov.au


Australian Consular-General Shanghai 澳大利亚领事馆上海南京西路1168号中信泰富广场 22层

Chengdu

Level 11 Square 1, Regus Business Centre 18 Dongyu St, Jinjiang District, Chengdu, Sichuan 610016 Tel: +86 28 6268 5200 Website: www.chengdu.china.embassy.gov.au

Hong Kong

23 Floor Harbour Centre 25 Harbour Road, Wanchai, Hong Kong Tel: +852 2827 8881 Fax: +852 2585 4457 Website: www.hongkong.china.embassy.gov.au

Guangzhou

Level 12, Development Centre 3 Linjiang Roand, Zhujiang New City Guangzhou 510623 Tel: +86 20 3814 0111 Fax: +86 20 3814 0112 Website: www.guangzhou.china.embassy.gov.au

MINISTRY OF FOREIGN AFFAIRS

Beijing

2 Chaoyangmen Nandajie, Chaoyang, Beijing Tel: +86 10 6596 1114 Website: www.fmprc.gov.cn


Ministry of Foreign Affairs Beijing 中国外交部北京朝阳区南大街朝阳门2号

3029

FINANCE, TAXATION AND ACCOUNTING CERTIFIED PRACTISING ACCOUNTING AUSTRALIA REPRESENTATIVE

CPA Australia is an Australian based accounting body with a membership of more than 150,000 finance, accounting and business professionals globally. For more information about CPA Australia please visit www.cpaaustralia.com.au

Beijing

307-308B, Level 3 Office Tower C2 Oriental Plaza 1 East Chang An Avenue Dong Cheng District Beijing 100738 Tel: +86 10 8518 5575 Fax: +86 10 8518 7001 Email: [email protected]


CPA Australia, Beijing 东城区东长安街1号东方广场 C2楼 3层 307-308B室

Shanghai

Suite 1407, Level 14, CITIC Square 1168 Nanjing West Road Shanghai 200041 Tel: +86 21 3218 1860 Fax: +86 21 5292 5289 Email: [email protected]


CPA Australia, Shanghai 上海市南京西路1168号中信泰富广场 14层 1407室

Guangzhou

Room 1714-15 Main Building Guangdong International Hotel 339 Huanshidong Road Guangzhou 510098 Tel: +86 20 2237 2846 Email: [email protected]

NATIONAL AUDIT OFFICE OF CHINA

Beijing

1 Beiluyuan, Zhanlan Road Beijing 100830 Fax: +86 10 6833 0958 Email: [email protected] Website: www.cnao.gov.cn


National Audit Office 中国审计署北京市展览路北潞园1号

THE PEOPLE’S BANK OF CHINA

Beijing

32 Chengfang Street, Xicheng Beijing, 100800 Tel: +86 10 6619 4114 Email: [email protected] Website: www.pbc.gov.cn


National Audit Office 中国人民银行北京市西城区成方街 32号

LAW AND JUSTICE MINISTRY OF JUSTICE

Beijing

10 Nandajie, Chaoyangmen, Chaoyang Beijing 100020 Website: english.moj.gov.cn


Ministry of Justice 中国司法部北京市朝阳门南大街 10号

NATIONAL BUREAU OF CORRUPTION PREVENTION

Beijing 2 Guang’An Men Nan Jie, Xuanwu Beijing 100053 Website: www.nbcp.gov.cn


Ministry of Justice 国家预防腐败局北京市玄武区广安门南街2号

3231

TRAVELLING TO CHINA

TRANSLATION SERVICESMandarin is the official spoken language in China. Diverse regional dialects are united through a common and official way of written communication, Simplified Chinese. When doing business in China or with Chinese counterparts, it is important to translate official documents into Simplified Chinese. Companies should be prudent in selecting translation services to ensure that the translation is accurate and professional. High quality translation would reduce misunderstanding and ambiguities and can be interpreted as a show of respect.

ACCOMMODATION Fully serviced hotels and apartments can be easily found in most cities in China. ACBC members can benefit from a range of benefits when staying at an ACBC member accommodation service. Please contact your ACBC Branch for more information.

TRAVEL AND TRANSPORT Major cities in China are easily accessible by plane. Trains and coaches are also available for regional travel. Train and plane tickets should be booked in advance and travellers should be aware of ticket scams. During a short stay,

taxis are the best way to get around local areas. Taxis are metered by law, but most taxi drivers speak Mandarin only. Limousines with English-speaking drivers are available but are more expensive. During a long term stay, trams and buses can provide a more economical way of travel. When travelling to China, ACBC members can benefit from a range of benefits when travelling on an ACBC member airline. Please contact your ACBC Branch for more information.

HEALTH AND WELFAREA number of western style clinics can be found in large cities such as Beijing and Shanghai. Major also hospitals provide emergency service to foreigners. Cash payments are expected and price may be inflated.

Common health concerns include pollution and food and water hygiene. Fruits should be washed and peeled. Raw food and local tap water should be avoided.

Health insurance is highly recommended. Please visit DFAT’s Smart Traveller Guide, www.smartraveller.gov.au, for updated health and welfare information.

CHINESE CULTURE & BUSINESS ETIQUETTE

BUILDING RELATIONSHIPS • Guan Xi (or relationship) is a unique social phenomenon which determines

your influence or bargaining power in society. Chinese people tend to cooperate with or favour those who they have a ‘relationship’ or Guan Xi with. Guan Xi is usually built on friendship, mutual benefits, familial relationships or business relationships.

• Good Guan Xi is essential to strong business relationships and cooperation. Meetings and dinner banquets are commonly and often used in China to foster strong relationships and trust.

• Mian Zi (or face) refers to a person’s dignity and plays a big part in Chinese relationship building. Acts that “give face” (such as attending dinner banquets, giving compliments and showing politeness) are encouraged. Acts that cause one to “lose face” (such as public arguments and showing anger) should be avoided.

AT A BUSINESS MEETING• Punctuality is expected. Meetings start promptly and you should arrive early

for formal introductions.

3433

• A handshake is the standard way to greet men and women of all levels. Kissing on the cheek or hugging should be avoided.

• Elders are well respected and an extra show of courtesy in the presence of elders will reflect well on you.

• ‘Ni Hao’ (hello) and ‘Xing Hui’ (glad to meet you) are common greetings. Using simple Mandarin phrases such as these can go a long way.

• Address your counterparts by their surname which is placed before their first name.

• Business cards should be in English and Simplified Chinese. Present your business card with both hands with the Simplified Chinese side facing up. When receiving a business card, it is polite to examine it for a moment before putting it away.

AT A BUSINESS DINNER• Business lunches and dinners are commonly used for building relationships

and even negotiations.

• Never begin eating or drinking until your host does. It is polite to try all dishes that are offered to you, but you can discreetly leave anything you don’t like at the edge of your plate.

• Dinner speeches and frequent toasts are standard and are expected of both the host and guests. ‘Bai Jiu’ (spirit drink) is the usual drink for toasts.

• You may be strongly encouraged to drink ‘Bai Jiu’ by your host or other guests. Drinking together is a welcoming gesture and a way of building relationship.

DURING AN NEGOTIATION• Conduct thorough research of your counterparts and their companies.

Demonstrate your control of the negotiation by sending an agenda prior the negotiation.

• Chinese negotiators like to open negotiations with important issues. They aim to gain concessions. Be willing to compromise.

• Expect to encounter delays, but it is important to remain polite.

• Use jargon free language and ensure that decisions are free of ambiguity.

GIFT GIVING• Small gifts are usually given at a farewell banquet or the end of an

important introductory meeting. Gifts signify gratitude, appreciation, goodwill and friendship.

• Gifts should be sophisticated and made presentable. Gifts should be wrapped with colours that signify good luck (such as red and gold). Avoid colours such as black and whites.

• Extremely valuable gifts or giving gifts without good reason may represent an ulterior motive.

• When receiving gifts, it is polite to refuse 2 or 3 times before accepting the gift.

• Business gifts should be reciprocated.

3635

CHINESE DIALLING AND AREA CODESCHINA NATIONAL DIALLING CODE: 86

CITY AREA CODE CITY AREA CODE

Beijing 10 Ningbo 574

Chengdu 28 Qingdao 532

Dalian 411 Shanghai 21

Foshan 757 Shaoxing 575

Guangzhou 797 Shenyang 24

Hangzhou 571 Shenzhen 755

Jinan 531 Wuhan 27

Kunming 871 Xi an 29

Nanjing 25 Xiamen 592

CHINESE PUBLIC HOLIDAYS

NAME 2014 2015 2016

New Year Jan 1 Jan 1 – 3 Jan 1 – 3

Spring Festival (Chinese New Year)

Jan 31 – Feb 6 Feb 19 – 25 Feb 8 – 14

Qingming Festival Apr 5 – 7 April 4 – 6 Apr 2 – 4

Labour Day May 1 – 3 May 1 – 3 Apr 30 – May 2

Dragon Boat Festival May 31 – Jun 2 Jun 20 – 22 Jun 9 – 11

Mid-Autumn Festival Sep 6 – 8 Sep 26 – 28 Sep 15 – 17

National Day Oct 1 – 7 Oct 1 – 7 Oct 1 – 7

3837

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EMERGENCY NUMBERS IN CHINAPolice 110Fire 119Ambulance 120Traffic Accident Reports 122Consumer Complaints 12315