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Doing Business in China July, 2012

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Ivy Yang

Agenda • The power of Asia • The promising China economy • Be where the opportunities are! – Dynamic job market

Senior Marketing Manager, CEIBS

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The Power of Asia China

● ● ● ● 1. 2. 3.

APAC represents 55% of global GDP & 44% of world trade Developing Asia will overtake G7 by 20181 Wealth Shifting from the Europe to Asia2 Asia-Pacific counts for 64 % of world employment 3 Source: “The Rise of Developing Asia and the New World Order," Journal of Policy Modeling, September-October 2011 Source: "The World's Billionaires". Forbes. 2011 Source: Statistical Yearbook for Asia and the Pacific 2011, United Nations ESCAP

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The Promising China Economy Sector GDP  

1980

1990

2000

2005

2010

Agriculture & Mining

30%

27%

15%

12.2%

10.2%

Manufacturing & Industry

48%

41%

46%

47.7%

46.9%

Service

22%

32%

39%

40.1%

42.9%

• GDP in China in 2010 approximately USD6 trillion • Focused on key industries, e.g. Steel, automobiles, electronics, energy, communications • Developing high value added manufacturing and the service economy • Building infrastructure including railways, highways, airports, waterways and pipelines Source: China Statistical Yearbook, 2011

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Seven Priority Industries • • • • • • •

New energy Energy conservation and environmental protection Biotechnology New materials IT/Telecom High-end equipment manufacturing Clean energy vehicles

Source: KPMG China, 2011


Dynamic Job Market • Promising Career Opportunities

• Over 70% of Fortune 500 have operations in China • The Fortune 500 list for 2012, released July 9, names 79 Chinese companies (including 4 in HK and 6 in Taiwan), 10 more than in 2011 and the ninth consecutive year the figure has risen. (192 US companies in 2002) • 24 Fortune 500 companies’ Asia headquarters move to mainland China from HK/Singapore

• Ideal Place for Entrepreneurs • USD 4.6 billion venture capital investment in China with 42.2% from overseas VC

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Dynamic Job Market Industries that talents are in big demand

Source: MBA2009 career report


Dynamic Job Market Function that talents are in big demand


Job Location –Pre-CEIBS VS Post-CEIBS Overseas Students


Annual Guaranteed Income


Annual Guaranteed Income Range


Annual Guaranteed Income – Industry Comparison


Job Industry / Function Change Only Change Industry 14% Only Change Function 16%

Both Change 41%

Both No change 29%

• Total 71% of the students changed either industry, function or both. This year 80%.


Why Talents Come to China ? • • • • •

Greater understanding of Asian business Kick-off a career in Asia, the new “Land of Opportunities” Enrich CV & create competition edge by bridging East and West Build network with alumni and corporations in Asia Asia: New Innovation Powerhouse


Natalia Gerasimenko Deputy General Manager, Shanghai KuibyshevAzot Trading Co. 15


“The taller the bamboo grows, the lower it bends” CHINESE PROVERB

BUISNESS IN CHINA WITH LESS FRUSTRATION


• • • • • • • • •

KUIBYSHEVAZOT – BRIEF INTRODUCTION

The company is placed in 1000 km south-east of Moscow, the Russian capital, in Togliatti, Samara Region, on the bank of the Volga, the largest European river. The plant was founded in 1966. The area of the company is 3 000 000 sq. m (300 hectare). Number of personnel is 5500 people. "JSC KuibyhevAzot" today: one of ten largest world producers and the biggest in CIS countries in Caprolactam production; is a leader in PA-6 production in Russia, CIS countries and Eastern Europe; one of first ten domestic nitrogen and nitrogen fertilizer producers; is the only company in Russia that produces of tire cord fabric on high tenacity industrial yarns basis; has an integrated management system, certified in accordance with the requirements of Russian and International Standards ISO 9001:2008; ISO 14001:2004; OHSAS 18001:2007 .

Source: http://www.kuazot.ru/


KUIBYSHEVAZOT – HISTORY IN CHINA PULLED PULLED BY BY THE THE MARKET MARKET


“Notice that the stiffest tree is most easily cracked, while the bamboo or willow survives by bending with the wind” Bruce Lee

• FORGET EVERYTHING YOU LEARNT, STICK TO YOUR CORE VALUE ONLY. • DO NOT EXPECT ANYTHING- WILL NOT BE DISSAPPOINTED • YOU COME TO CHINA BECAUSE YOU NEED CHINA


RESOURCES •• LABOR - FIGHT FOR THE TALENT!!! –– SHORTAGE – “1-CHILD POLICY” SINCE 1979 –– LOW OR INADEQUATE PROFESSIONAL PROFESSIONAL EDUCATION

•• ••

ENERGY – SCARCE RAW MATERIAL-CLEAR GOV’T GOV’T STRATEGY ON SELF-SUFFICIENCY


INFRASTRUCTURE •

LOGISTICS – EXCELLENT! – ONLY CARGO RAIL IS LAGGING BEHIND

CUSTOMS – WELL-DEFINED (WITH SOME SMALL PECULARITIES)

FINANCING – – HEAVILY-REGULATED, BUT – EAGER TO GROW – GOVERNMENT SUPPORT FOR FUNDING

TAXATION AND INCENTIVES – EQUAL TREATMENT – SPECIAL INDUSTRIAL AND TECHNO PARKS – SPECIAL INCENTIVE FOR INNOVATION AND NATURE CONSERVATION


MARKET • ALREADY 2ND BIGGEST ECONOMY IN THE WORLD • STIMULATION OF DOMESTIC CONSUMPTION • FIERCE COMPETITION WITH DOMESTIC PLAYERS INTENSIFIES EVEN MORE FOR THE 2ND- AND 3RD- TIER CITIES


MY EXPERIENCE – CEIBS MBA 2007

• COME TO CHINA AS A STUDENT

– MORE FUN – MORE CONTACTS – REAL FRIENDS – MORE SUPPORT!!! – LESS CULTURAL SHOCK

• SHANGHAI IS A GREAT CITY – TRANSPARENT AND STRUCTURED – BIGGER POOL OF TALENT – CENTER OF COMMERCE AND BUSINESS

• LEARN AT LEAST BASIC CHINESE


Doing Business in China