Doing Business in ChinaDoing Business in China

Daniel GAODaniel GAOEconomic & Commercial Office Economic & Commercial Office

Chinese EmbassyChinese Embassy

China In BriefChina In Brief Official name: People’s Republic of ChinaOfficial name: People’s Republic of China Capital city: BeijingCapital city: Beijing National Language: Standard MandarinNational Language: Standard Mandarin Geographical Divisions: Geographical Divisions: --22 Provinces22 Provinces - 4 Municipalities- 4 Municipalities -5 Autonomous Regions-5 Autonomous Regions -2 Special Administrative Region.-2 Special Administrative Region. Population: 1.3 billionPopulation: 1.3 billion Currency: RMBCurrency: RMB

China’s Economy (2011)China’s Economy (2011) GDP: $7.29 trillion, GDP: $7.29 trillion, Rank 2Rank 2ndnd

GDP growth: 9.3%GDP growth: 9.3% GDP per capita: $5,414 (90th)GDP per capita: $5,414 (90th) GDP by sector:GDP by sector: Agriculture: 10.1%Agriculture: 10.1% Industry: 46.8%Industry: 46.8% Services: 43.1%Services: 43.1% Inflation (CPI): 5.4%Inflation (CPI): 5.4% Labor force :795.5 millionLabor force :795.5 million FDI stockFDI stock: : $100 billion (2010)$100 billion (2010)

China’s Economy (Cont)China’s Economy (Cont)

Main industriesMain industries mining and ore processingmining and ore processing iron, steel, aluminum, coal and other metalsiron, steel, aluminum, coal and other metals machine buildingmachine building textiles and appareltextiles and apparel Petroleum and chemicalsPetroleum and chemicals CementCement consumer products (footwear, toys, electronics)consumer products (footwear, toys, electronics) transportation equipment (automobiles, cars and transportation equipment (automobiles, cars and

locomotives, ships, and aircraftlocomotives, ships, and aircraft

Export from ChinaExport from China Export Volume:Export Volume: $1.904 trillion $1.904 trillion Export goods:Export goods: --Electrical--Electrical --Machinery (data processing equipment)--Machinery (data processing equipment) --Apparel and textiles--Apparel and textiles --Iron and steel, --Iron and steel, --Optical and medical equipment--Optical and medical equipment Main export partners: Main export partners: US 17.1%, Hong Kong 14.1%, Japan 7.8%, South US 17.1%, Hong Kong 14.1%, Japan 7.8%, South

Korea 4.4%, Germany 4% (2011)Korea 4.4%, Germany 4% (2011)

Import into ChinaImport into China

Import Volume: Import Volume: $1.743 trillion$1.743 trillion Import goods: Import goods: --Electrical and machinery--Electrical and machinery --Oil and mineral fuels --Oil and mineral fuels --Optical and medical equipment--Optical and medical equipment --Metal ores, plastics, organic chemicals--Metal ores, plastics, organic chemicals Main import partners: Main import partners: Japan 11.2%, Japan 11.2%,

South Korea 9.3%, US 6.8%, Germany South Korea 9.3%, US 6.8%, Germany 5.3%, Australia 4.6%5.3%, Australia 4.6%

Ireland China Trade Relations Ireland China Trade Relations (2011)(2011)

Trade volume: Trade volume: $ $ 5.87 bn5.87 bn, up 8.6%, up 8.6% Irish exports to China: Irish exports to China: $ 3 .7 bn, up 8.5%$ 3 .7 bn, up 8.5% Irish imports from China: Irish imports from China: $ 2.17 bn, up 8.7%$ 2.17 bn, up 8.7% 55thth year as 1 year as 1stst biggest trade partner in Asia biggest trade partner in Asia 33rdrd year with Irish trade surplus against China year with Irish trade surplus against China

Ireland China Mutual Investment(2011)Ireland China Mutual Investment(2011) Over 110 Irish companies operating 241 Over 110 Irish companies operating 241

projects in Chinaprojects in China

Irish investment in China: Irish investment in China: $ $ 641 million641 million

China’s investment in Ireland: China’s investment in Ireland: $ $ 148 million148 million

CSO Stats on Bilateral Merchandized TradeCSO Stats on Bilateral Merchandized Trade

* China includes Hong Kong and Macau

Mn Euro

No ProductTotal exports Exports to China

2001 2009 Growth(%) 2001 2009 Growth(

%)0 Food and live animals 5725.7 6266.2 9.44 5.163 44.46 761.201 Beverages and tobacco 958.1 1069.9 11.67 0.041 1.239 2921.952 Crude materials, inedible,

except fuels 923.9 960.1 3.92 3.525 87.332 2377.50

3 Mineral fuels, lubricants and related materials 285.5 596.1 108.79 0.004 0.036 800.00

4 Animal and vegetable oils, fats and waxes 23.4 19.9 -14.96 0.000 0

5 Chemicals and related products

32274.6 47242 46.3743.012 242.16 463.00

6 Manufactured goods classified chiefly by material 1966.3 1234.7 -37.2114.646 6.152 -58.00

7 Machinery and transport equipment

37922.7 13739 -63.77249.36 1189.7 377.10

8 Miscellaneous manufactured articles 8781.6 9114.2 3.7922.153 51.542 132.66

9 Commodities and transactions not classified elsewhere 2786.1 2464.8 -11.53 0.559 16.924 2927.55

Note: All statistics does not include HongKong/Macau/Taiwan.

Trend of Irish Export to China

Irish Brands in ChinaIrish Brands in China

China’s Brands in IrelandChina’s Brands in Ireland

Buying from/Selling to ChinaBuying from/Selling to China

Search: Search: www.alibaba.com www.made-in-china.comResearch:Research:1.1. Ask for related certificates (trade licence, Ask for related certificates (trade licence,

product certificates, sanitary certificates, etc)product certificates, sanitary certificates, etc)2.2. Look at the website and reviews by other usersLook at the website and reviews by other users3.3. Contact consulting firms for help (Chinaportal)Contact consulting firms for help (Chinaportal)Decision: go on or stopDecision: go on or stop

Custom DutyCustom Duty Regulator: General Administration of CustomsRegulator: General Administration of Customs (GAC , http://english.customs.gov.cn)(GAC , http://english.customs.gov.cn) Overall average tariff level: 9.8% Overall average tariff level: 9.8% Agricultural products 15.2%Agricultural products 15.2% Industrial goods: 8.9Industrial goods: 8.9 Types of duties and taxesTypes of duties and taxes

China’s Import Tax RateCustoms duties Varies on type of product

Value Added Tax (VAT) 17%

Consumption Tax 5-40% depending on product

Vessel Tonnage Tax RMB 0.45 to 9.3% per ton

Import and Export LicencesImport and Export Licences

special licences required prior to import into or special licences required prior to import into or export from China for pharmaceuticals, export from China for pharmaceuticals, encryption technologies, chemical fertilizers, and encryption technologies, chemical fertilizers, and products containing “home-grown” technologies.products containing “home-grown” technologies.

Issued by Ministry of Commerce (MOFCOM)Issued by Ministry of Commerce (MOFCOM) Importers & Exporters need to make accurate Importers & Exporters need to make accurate

declarations and submit the requisite import or declarations and submit the requisite import or export licences to Customs for examination for export licences to Customs for examination for the release of the products.the release of the products.

Fraudulence?Fraudulence? Frank communication and negotiationFrank communication and negotiation Ask for legal support Ask for legal support Report to the local government bureauReport to the local government bureau Report to the local police stationReport to the local police station Complain hot lines (in ChineseComplain hot lines (in Chinese)) 12330 IPR related12330 IPR related 12390 copyright infringement12390 copyright infringement 12365 product quality12365 product quality 12315 customer complaint12315 customer complaint 12360 custom issues12360 custom issues

Business ContributorsBusiness Contributors

Source: UCD Confucius Institute for IrelandSource: UCD Confucius Institute for Ireland

cultural differencesprocedure

language

information

Time

price

currency

law

Your strategy for doing business in PRC Your strategy for doing business in PRC is PRCis PRC ------------ Confucius Institute Confucius Institute for for IrelandIreland

Embassy’s RoleEmbassy’s Role promoting and enhancing bilateral economic, trade promoting and enhancing bilateral economic, trade

and investment cooperationand investment cooperation providing business information and consultation providing business information and consultation

services to companies from both countriesservices to companies from both countries facilitating trade and investment activities facilitating trade and investment activities

(business trips/exhibitions)(business trips/exhibitions) keeping close contact with relative Irish government keeping close contact with relative Irish government

departments/agencies/associations/chambers, departments/agencies/associations/chambers, rendering guidance to Chinese companies’ rendering guidance to Chinese companies’ business development in Irelandbusiness development in Ireland

ContactContact

Tel: 01-2600580Tel: 01-2600580Fax: 01-2696966Fax: 01-2696966Website: ie.mofcom.gov.cnWebsite: ie.mofcom.gov.cnEmail: Email: commercial@embassyofchina.ieAddress: 77, Ailesbury Road, Dublin 4Address: 77, Ailesbury Road, Dublin 4

Go raibh maith agaibh Go raibh maith agaibh ! !