Situation after the visit of China (Shanghai, Wenzhou, Shenzhen, Hong Kong) 01/2014

Making business, proving you position in China is getting more and more important. Unfortunately, business in China is much more volatile, than in Middle Europe and there can be also seen little trust between partners, as they are 6000 km fare away from each other. To prove your position in China, you must declare following:
a) who do you make business with
b) how long you do it
c) how can you prove it
d) how strict you are
e) when can you pay and how can you assure it

If you want to achieve something in China after you are able to answer these questions you need to:
a) push your partners at least every week (phone, Skype), no email
b) clarify the agreement by written agreement
c) find the way to improve relationship and talk also about personal matters
d) introduce to your partners financial solutions normal in developed world and use the bank to prove it to them.

Problems, that are facing your Chinese partners:
1. shrinking output per additional input in terms or work force, land and cash
2. decreasing outputs by fixed inputs
3. increasing demands of higher salaries of employees

4. appreciation of RMB to USD

5. increasing laziness of workers in China
6. impossibility to manage more advanced machines by workers in China
7. impossibility of import of cheap workers from other parts of Asia to China (from Philippines, Vietnam ...)
8. limits of export of foreign currency from China
9. orientation on USA rather on EUROPE, as US business system is closer to China's business system
10. high equity/total assets ratio
11. increasing prices of input, limited resources