Expertise Guide Asia - Doing Business in China

8/16/2019 Expertise Guide Asia - Doing Business in China

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Project to establish European and Asian

Co-operations of small and medium sized Enterprises

Expertise Guide AsiaDoing Business

in China(Focusing Construction)


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Introduction

The “Expertise Guide Asia” for Malaysia and China

includes information for SMEs

The guide is an outcome of the ASIA Invest Project

PEACE in which companies from Spain, Hungary,

the Czech Republic, Germany, Malaysia and China

participated. Essential part of the project was the

two matchmaking events in Xian (China) at 15 June

2009 and Kuala Lumpur (Malaysia) at the 18 June2009. Intensive preparation, individual advisory and

custom-fit supports were additional objects during

the project to facilitate the entry of small and me-

dium sized companies in foreign markets. “Expertise

Guide Asia” for Malaysia and China are one part of

the project support and it is available for all SMEs

interested in these markets.

Main sectors were energy efficient construction,general building construction, environmental ener-

gies/renewable energies, installation (every kind of

installation), architecture, outdoor planning/land-

scape gardening, cleaning contractors, interior work

and design and built–in furniture/furniture. So the

two guides are focused on the construction area.

The project is funded by the European Union under

the Asia-Invest Programme. These Guides make no

claim to be complete. They serve as an orientation

guide for normal case. Liability regarding informa-

tion, accuracy and usefulness of these instructions

cannot be assumed.

Contractor:

Handwerkskammer Dortmund

Reinoldistr. 7-9

44135 Dortmund

Author of the Expertise Guide Asia – China:

Delegation of German

Industry and Commerce Shanghai

29/F POS Plaza, 1600 Century Avenue

Shanghai 200122, China

Author of the Expertise Guide Asia – Malaysia:

Malaysian German Chamber

of Industry and Commerce

Suite 47.01, Level 47,

Menara AmBank, No. 8, Jalan Yap

Kwan Seng, 50450 Kuala Lumpur, Malaysia

Layouthelex agentur & consult, Dortmund

Project Partners:

Dortmund Chamber of Skilled Crafts and Trades

Münster Chamber of Skilled Crafts and Trades

Dortmund Chamber of Commerce

Münster Chamber of Commerce

German Chinese Chamber of Commerce Shanghai

Heves Chamber of Commerce

Zala Chamber of Commerce

Barcelona Chamber of Commerce;

Czech Chamber of Commerce

Copyright 2010 / © 5/2010. All righths reserved.


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Table of Contents 3

Table of Contents

1. Formal requirements

for temporary activities 4

1.1 Work permit 4

1.2 Residence permit 4

1.3 Special Cases 5

2. Special requirements

for the construction industry 6

2.1 Requirements for constructioncompanies in China 6

2.2 Requirements for construction

design and engineering companies

in China 6

3. Tax Law/Social Security 8

3.1 Corporation income tax 8

3.2 Individual Tax 8

3.3 Income taxes for outgoing

German workers 103.4 Social Insurance 11

3.4.1 Information on social security

in China: 11

3.4.2 Social welfare in Shanghai 11

4. Legal Framework 12

4.1 Contract law 12

4.1.1 Employment management

regulations for foreigners 12

4.1.2 Contract regulations in the

construction industry 13

4.2 Product responsibility

and guarantee 144.3 Rules and Standards for foreign –

invested construction companies 14

4.3.1 Regulations on administration of

foreign–invested construction

enterprises 15


foreign-invested construction and

engineering design enterprises 19

5. Intercultural skills 225.1 Greetings / Titles /

Exchanging business cards 22

5.2 Gestures 22

5.3 Gifts 22

5.4 Communication in general 22

5.5 Business behavior 23

5.6 Negotiations 23

5.7 Dining 23

6. Further links 24


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4 Formal requirements for temporary activities

1.1 Work permit

According to the “Management regulation for for-

eign employees in China”, foreigners to be employed

in China must meet the following conditions:

at least 18 years of age, good physical health; possession of the necessary expertise and rele-

vant work experience to carry out their work;

no criminal record;

a valid passport or international travel docu-

ments which can replace a passport (hereinafter

referred to as a document instead of passport).

The employer company should apply for a work

permit, if it intends to employ foreigners. To shouldobtain the People’s Republic of China work permit

for foreigners, the following documents have to be

prepared:

Approval of the company (copy with company

stamp)

Business license (copy with company stamp)

Company code (copy with company stamp)

Résumé, English or German, with a Chinese ver-

sion (on company paper with company stamp)

Qualifications of work experience or certificate of

ability to work (copy with company stamp)

Training certificate (copy with company stamp)

Passport (copy with company stamp)

Foreigners with permission to work in China can ap-

ply for a working visa at Chinese embassies, con-

sulates and visa offices all over the world, bringing

with them their work permit, issued by the Ministry

of Labor, a letter issued by the authorized unit and

a valid passport or another valid tavel document. By

following these steps, the foreign employee shouldafterwards be in possession of a working visa and

should enter China and obtain an employment li-

cense and a residence permit for foreigners.

1.2 Residence permit

The residence permit for foreigners is issued to peo-

ple, staying more than 1 year in China. A temporary

foreigner residence permit is issued to people whostay less than one year in China.

Foreigners who need to stay in China for more than

30 days must apply for a residence permit or tem-

porary residence permit for foreigners at the police

office in their residential city or county within 30

days after the date of their entry into China.

Necessary documents to apply for the residence

permit:

valid passport and visa;

employer correspondence;

certificate of accommodation registration;

health certificate;

2 recent color photos

1. Formal requirements for temporary activities


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Formal requirements for temporary activities 5

1.3 Special Cases

Foreigners may be exempted of the duty to obtain

an employment license and a work permit, if they

meet any of the following conditions:

1. Foreign professional technical and manage-

rial personnel employed directly by the Chinese

government; those with senior technical titles or

credentials of special skills recognized by theirhome, or international technical authorities, or

professional associations, to be employed by

Chinese government organs; and institutions

and foreigners holding a foreign expert certifi-

cate issued by China’s Bureau of Foreign Expert

Affairs

2. Foreign workers with special skills who work

in offshore petroleum operations without the

need to go ashore for employment and can holda work permit for foreign personnel engaged in

the offshore petroleum operations in the Peo-

ple’s Republic of China;

3. Foreigners who conduct commercial entertain-

ing performances with the approval of the Min-

istry of Culture and hold a permit for temporary

commercialized performance.

Foreigners may be exempted of the employment

license and may apply directly for the working per-

mit by presenting their working visas and relevant

papers after their entry, if they meet any of the fol-

lowing conditions:

Foreigners employed in China under agreements

or accords entered into by the Chinese govern-

ment with foreign governments or internation-

al organizations for the implementation of Sino-foreign projects of cooperation and exchange;

Chief representatives and representatives of the

permanent offices of foreign enterprises in China.

If in a specific case, a private individual of Chinese

or foreign nationality would like to order equipment

for their private residence in a foreign country, it is

according to Chinese laws not possible, to ask the

foreign manufacturer or a foreign craftsman to in-stall it in their homes. An installation like this must

be performed by a Chinese company. Though, it

is possible for foreign craftsmen to come to China

with a Business-Visa (F) as consultants to advise the

Chinese craftsmen. A requirement is here still be-

ing invited by the Chinese company, which performs

the installation in order to receive a visa. This proce-

dure applies for any kind of installation, regardless

if whether in the fields of electronics or equipment

installation.


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6 Special requirements for the construction industry

2.1 Requirements for constructioncompanies in China

Foreign construction companies operated in the

1980s and 1990s only on a project-basis in China.

In order to be involved in the construction indus-

try in China, foreign companies had to demonstratetheir capability to participate in a particular project

in order to receive a business license. Foreign com-

panies can be involved in the following practices in

the construction industry:

Projects financed exclusively with foreign capital

Projects funded by loans of international institu-

tions, such as the World Bank, achieved by an in-

ternational bid Chinese-foreign joint venture projects, which de-

mand technical expertise, the Chinese partners

of the joint venture do not have

Projects financed by Chinese entities, but also in

need of foreign expertise - collaborations with

Chinese partners are possible in this case

As part of China’s commitment agreed in order to

join the World Trade Organization (WTO), the Min-

istry of Construction and the Ministry of Foreign

Trade and Economic Cooperation (now the Ministry

of Commerce) jointly issued two new regulations:

the Regulation on Administration of Foreign–In-

vested Construction Enterprises and the Regulation

on Administration of Foreign-Invested Construction

and Engineering Design Enterprises, in 2002.

After the Regulation on Administration of Foreign–

Invested Construction Enterprises came into force,

the old system, which based on projects, became

invalid. Instead, if the foreign companies want to be

involved in construction projects in China, they are

now obliged to find a foreign-invested construction

enterprise, except for projects financed by interna-tional institutions, eg. the World Bank.

The main disadvantage of the new rules is, that

foreign companies seeking involvement in China’s

construction projects are now forced to maintain a

permanent presence in China, with significant capi-

tal and labor input.

2.2 Requirements for constructiondesign and engineering com-panies in China

Chinese design offices are divided into four classes,

A, B, C and D. The class A design offices have no

limits in terms of scale, the difficulty grade, or the

location of the applied projects; the class B and class

C design offices will be limited according to their

province of origin and the location of the design of-

fice. The class D design offices can not design un-

derground structures.

2. Special requirements for the construction industry


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Special requirements for the construction industry 7

In the field of design and engineering there are ba-

sically three ways for a foreign company to get in-

volved in China:

Founding of a foreign-invested design company

(joint venture or 100% subsidiary) or purchase of

shares in an

existing Chinese company

Founding of a limited consultancy company

Cross-border provision of design for, or jointly,with a Chinese design office

Concerning the activities of foreign designers and

engineers in China, the Regulations on Administra-

tion of Foreign-Invested Construction and Engineer-

ing Design Enterprises are very important. Accord-

ing to this, foreign-invested design enterprises will

face stricter rules for achieving the certificate of

competence than Chinese designers. It means, that

because of a lack of experience in Chinese construc-

tion projects, foreign-invested design companies

are likely to be rated in a lower class, even if they

have a successful record elsewhere.

Besides reestablishing a foreign-invested design en-

terprise - alone or in the form of a joint venture with

a Chinese partner – there is, of course, the questionwhether founding a foreign-invested design enter-

prise is possible through the acquisition of shares

in an existing Chinese design company. It’s possi-

ble in principle: In such a case, the stricter rules of

planning regulations do not interfere, provided they

comply with key personnel and compulsory attend-

ance etc. However, a revaluation of the certificate of

competence has to be taken.


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8 Tax Law/Social Security

3.1 Corporation income tax

The following enterprises or organizations, which

separately account for their respective financial re-

sults (hereinafter referred to as taxpayers) shall have

an obligation to pay income tax:

1. State-owned enterprises;

2. Collective enterprises;

3. Private enterprises;

4. Joint venture enterprises;

5. Joint stock enterprises;

6. Any other organizations deriving income from pro-

duction and business operations and other income.

The income tax payable by a taxpayer shall be

computed at 33% of its taxable income. The tax-able income shall represent total income earned

by the taxpayer in a tax year less deductible

items. The taxable income shall represent the to-

tal income, earned by the taxpayer in a fiscal year

less deductible items for that fiscal year.

3.2 Individual Tax

The tax liability in China is composed of the limited

and unlimited tax liability, which is based on resi-

dence principle and the duration of the stay.

For people who stay less than 183 days in China

within a year (for those countries that have a dou-

ble taxation agreement with China), their income of

self-employment in China is exempted from taxes, if

the wage/salary payments are made by an employer

outside of China. This exemption does not apply

to foreigners, if their income is paid by a Chinese

employer, including chief representative and senior

management executives.

Under these circumstances, foreigners are liable for

taxation from the first day on.

Stays in China of more than 183 days and less thanone year will be regarded as non-residence in China,

and the following taxes will be applicable:

1. The employee works in China and obtains salary

from Chinese employers: tax in China

2. The employee works in China and obtains salary

from foreign employers: tax in China

3. The employee works overseas and obtains salary

from Chinese employers: no tax in China4. The employee works overseas and obtains salary

from foreign employers: no tax in China.

If a foreigner stays in China for more than one year

and less than five years, they are subject to the fol-

lowing income taxes:

1. The employee works in China and obtains sala-

ries from Chinese employers: tax in China

2. The employee works in China and obtains sala-

ries from foreign employers: tax in China

3. The employee works overseas and obtains sala-

ries from Chinese employers: tax in China

4. The employee works overseas and obtains sala-

ries from foreign employers: no tax in China.

After a stay of 5 years, a foreigner will be taxed in

China for his entire international income, and inter-

est income or rental income in foreign countries.

The Chinese tax law has almost no deductions. Cash

3. Tax Law/Social Security


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Tax Law/Social Security 9

amounts paid from companies to the employee are

usually taxed. Anyone who receives a fixed amount

of money as rental subsidy must be fully taxed. Only

payments taken by the companies - eg for rent, pri-

vately used passenger cars, plane tickets for home

holiday, school fees, etc - are exempted.

The Chinese financial authorities consider it to be ob-

ligatory, that the amount of income has to be proven

by a salary certificate. Normal income levels for spe-cific positions are well known. A general manager

for example, who earns a salary of 4,500 RMB and

would like to pay 25 RMB in taxes, should prepare for

some very tough questions. The finance authorities

are also well informed about the length of the stay in

China, due to all entry and exit data of airports are of

course kept nation-wide accessible databanks.

According to the new regulations of the State Ad-ministration of Taxation (SAT),Reinforcing the Man-

agement of Income Tax Records for Expatriates, local

authorities have now issued a new file to foreigners.

In addition, from January 2007 on, all individuals in

China with an annual income of over 120,000 RMB

should apply for income tax independently, and tax-

payers with an income above RMB 120,000 per year

should give tax clarification according to the new

provisions, in addition to their monthly tax payment,

either through their employer or by themselves.

For wages and salaries, the tax rate is progressive

from 5 to 45%. The top rate of 45%, charged on a

monthly income, basis, applies to incomes exceed-

ing 100,000 RMB.

The People’s Republic of China income tax rate (in

RMB, tax rates in %) For the calculation of the tax

rate for foreign employees, an amount of 4,800 RMB

will be deducted from the respective monthly incom.

Salary Tax rate in %

under 500 5

500 to 2.000 10

2.000 to 5.000 15

5.000 to 20.000 20

20.000 to 40.000 25

40.000 to 60.000 3060.000 to 80.000 35

80.000 to 100.000 40

over 100.000 45


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10 Tax Law/Social Security

3.3 Income taxes for outgoingGerman workers

The term outgoing means working in another coun-

try for a foreign-based employer in the framework

of a domestic employment relationship.

In general, the tax situation of an outgoing em-

ployee is complicated, involving both, foreign and

Chinese tax laws. The assistance of a specialist taxadviser is recommended.

Generally they consider the following factors:

1. Taxing state (s)

2. Influential factors on the individual tax liability

overseas, for example, through home ownership,

income from rental/lease or business

3. If necessary: Application procedure for tax ex-

emption

4. Responsibility for payment of income taxes (em-

ployer or employee)

5. Reimbursement of expenditure by the company(i.e. tax, possibly countervailing tax, if not includ-

ed in the subsidies)

The following chart demonstrates in which cases a

foreign employee should pay income tax:

Is it income based on a position

in a representative office? yes income taxable

no

Is the income paid by companies in the PRC? yes income taxable

no

Will the income be calculated to the account of a

company in China in the end? yes income taxable

no

Does the foreign employee spend less than 90 days

in China in a calendar year? yes income taxable

no

Does the foreign employee spend less than 184

days in China in a calendar year? yes income taxable

no

The income tax can possibly be exempted,

further advice needed.


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Tax Law/Social Security 11

3.4 Social Insurance

3.4.1 Information on social security

in China:

It’s essential to distinguish whether it concerns a

Chinese or a foreign worker. Moreover, it is impor-

tant to distinguish whether it is concerning the em-

ployer in a Chinese or foreign-invested enterprises

(joint venture) or a representative office or a wholly

foreign owned enterprise.

A. Representative office

1. Employer: Representative office

Employee: Chinese nationality

The employee can not directly be employed by a

representative office with an employment contract.

The employee will sign a contract with a recruitment

company. The representative office can only hire theemployee by this company. In addition to this con-

tract (employee and the recruitment company), an-

other service contract can be signed between the

recruitment company and the employee, in which

other details can be added. The recruitment com-

pany is responsible for the social welfare contribu-

tions of the employee. The representative office is

required to make contributions as described in II.

2. Employer: Representative office

Employee: foreign nationality

The employment relationship is governed by the for-

eign labor and social security law.

B. wholly foreign owned enterprise,

joint venture

1. Employer: subsidiary firm of a

foreign company (WFOE) or joint venture

Employee: Chinese nationality

The employer can directly hire the employee or

through the recruitment company.

2. Employer: daughter company of a

foreign company (WFOE) or joint venture

Employee: foreign nationality

Foreign employee can either be employed by the

German company (i.e dispatch contract), or be em-

ployed by a local employment contract.

3.4.2 Social welfare in Shanghai

A. Chinese employee

1. The employer has to pay 12% of the salary for

health insurance, 22.5% for the pension insur-

ance, 2% for the unemployment insurance and

7% for the housing allowance, and 0.5% to 3%

for work accident insurance (depending on the

level of danger of the activity).

2. The employee has to pay 2% of the salary forhealth insurance, 8% for the pensions, 1% for the

unemployment insurance and 7% for the hous-

ing allowance.

3. If the salary of the employee is more than 300%

above the average salary in Shanghai, the excess

is not subject to social welfare contribution. The

average salary in Shanghai is 2892 RMB (2007).

4. For employees who only have a freelance con-

tract with the employer is no social welfare con-

tribution to pay.

B. Foreign employees

Basically foreign workers are not eligible for the Chi-

nese social security system. Also, such employees

are not “hired” by a recruitment company.


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12 Legal Framework

4. Legal Framework

4.1 Contract law

4.1.1 Employment management

regulations for foreigners

The employer and its foreign employee should, in ac-

cordance with the “Law Of The People’s Republic of

China on Employment Contracts” and “Regulations

on The Management of Employment of Foreignersin China”, conclude a labor contract, the term of

which shall not exceed five years. Such contract may

be renewed upon expiration after the completion of

examination and approval procedures in accordance

with.

The work permit of the employed foreigner shall

cease to be effective upon the expiration of the

term of the labor contract between the foreignerand his employer. If renewal is required, the employ-

er should, within thirty days prior to the expiration

of the contract, submit an application to the labor

administrative authorities for the extension of term

of employment, and after approval is obtained, pro-

ceed to go through formalities for the extension of

the work permit.

The foreign employee should ,within ten days after

obtaining the approval for extension of his term of

employment in China or the change of his employ-

ment location or his employer, go through formali-

ties for the extension or change his residence certifi-

cate at the local public security organs.

After the termination of the labor contract between

the foreign employee and his employer, the employ-

er should promptly report it to the labor and pub-

lic security authorities, return the work permit and

the residence certificate of the mentioned foreigner,

and go through formalities for exiting China.

The employer of the foreign employee in China shall

be the same as specified in his employment license.

If the foreigner switches employers within the ar-

ray, designated by the certificate office but remains

in a job of the same nature, the change must be

approved by the original Certificate Office and re-

corded in his work permit. If the foreigner is to beemployed not within the array designated by the

certificate, he/she must go through formalities for a

new employment license.

For foreigners whose residence status is revoked by

public security organs due to his violation of Chinese

laws, the labor contract should be terminated by

the employer and the employment permit will be

withdrawn by the labor administrative authorities.

Should labor disputes arise between the employer

and its foreign employee, these should be handled

in accordance with the Labor Law of the People's

Republic of China and the regulations of the Peo-

ple's Republic of China on Settlement of Labor Dis-

putes in Enterprises.

The labor administrative authorities shall conduct an

annual inspection of the work permit within thirty

days prior the end of every year of employment of

the foreigner. The employer should go through for-

malities of the annual inspection at the certificate

office of the labor administrative authorities. The

work permit shall automatically cease to be effec-

tive when the deadline is passed. In case of loss or

damage of the work permit during the term of his

employment in China, the foreigner should prompt-

ly report it to the original certificate office and go


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Legal Framework 13

through formalities for the issuance of the employ-

ment permit again.

The wage paid to the foreign employee by the em-

ployer shall not be lower than the minimum wage

at the locality.

Working hours，rest and vacation，work safety and

hygiene as well as the social insurance of the foreign

employees in China shall follow the relevant provi-sions of the state.

Generally, foreign employees have neither obliga-

tion nor a right to be in possession of social insur-

ances. However, according to the “Notice of Human

Resources and Social Security Bureau of Shanghai

on Issues Concerning Foreigners Working in Shang-

hai, People Acquiring Permanent Residence abroad

and Hong Kong, Macao and Taiwan Residents toParticipate in the Social Insurance for Urban Work-

ers” (10th of October 2009), foreign employees may

have the basic pension insurance, basic medical in-

surance and worker’s compensation insurance.

4.1.2 Contract regulations

in the construction industry

Regulations on the construction contract can be

found in the contract law, the construction law

and other administrative regulations relating to the

construction quality. As both are general contracts,

where the client authorizes the measure and plan-

ning activity to a contractor, and the separate au-

thorization of measure, planning and implementa-

tion activity from the client to individual entrepre-

neur are allowed.

The construction contract should contain the fol-

lowing points:

Scope of the plan

Construction period

The time for commencement and completion of

any work to be commissioned in interim,

Quality

Costs

Time for delivery of technical materials Responsibility for the supply of materials and

equipment

Appropriation of funds and settlement of ac-

count

Inspection upon completion of the project

Scope and period of quality warranty

Cooperation between the envolved parties

The existing regulations on architecture and plan-ning contracts are quite rare.

Preinstructed is the minimum content of the archi-

tecture contract, which has to contain the following:

A time limit for supplying the relevant informa-

tion and documents for the planning

An estimation of the budget

Nomination of the requirements for sufficient

quality

Regulations about the salary

Other conditions for the cooperation, like meth-

ods of dispute settlement


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14 Legal Framework

4.2 Product responsibilityand guarantee

Product quality law of the People’s Republic of Chi-

na was released in 1993 and amended in 2000. Ac-

cording to this regulation:

Anyone who conducts activities of production and

sale of any product within the territory of the Peo-

ple’s Republic of China must abide by this law. Butthe product referred to in this law means a product

which is processed or manufactured for the pur-

pose of sale. This law shall not apply to construction

projects.

Some important articles are listed here for

reference:

It is prohibited to forge or falsely use authentica-

tion marks, famous-and-excellent-product marks orother product quality marks; it is prohibited to forge

the origin of a product, to forge or falsely use the

name and address of a factory of another produc-

ers; and it is prohibited to mix impurities or imita-

tions into products that are produced or sold, or

pass a fake product off as a genuine one, or pass a

defective product off as a high-quality one.

The department in charge of supervision and con-

trol over product quality under the state council

shall be responsible for nation-wide supervision and

control over product quality. The relevant depart-

ments under the state council shall be responsible

for supervision and control over product quality

within the scope of their respective functions and

responsibilities.

Industrial products constituting possible threats to

the health or safety of human life and property must

be in compliance with the national standards and

trade standards safeguarding the health or safety

of human life and property; In the absence of such

national standards or trade standards, the product

must meet the requirements for safeguarding the

health or safety of human life and property.

To implement a construction project, the contrac-tors shall comply with the provisions of “Administra-

tive Regulations on the Work Safety of Construction

Projects” and “Regulation on the Quality Manage-

ment of Construction Projects” which provide re-

sponsibilities and obligations of construction project

owners, the survey and design entities, construction

entity, and project supervisory entity, quality repair

guarantee of construction projects and supervision

and administration.

Furthermore, the quality of the construction projects

shall be in accordance with the “Compulsory Provi-

sions on the Standard of the Construction Projects”

promulgated by the Construction Department of

the State Council.

4.3 Rules and Standards forforeign – invested construc-tion companies

The two regulations mentioned above “Regulations

on Administration of Foreign–Invested Construction

Enterprises “and” Regulations on Administration of

Foreign-Invested Construction and Engineering De-

sign Enterprises” contains all the rules from applica-

tion to supervision, some important articles in the

two regulations are listed for reference.


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Legal Framework 15

4.3.1 Regulations on administration

of foreign–invested construction

enterprises

These regulations shall apply to the establishment

of foreign–invested construction enterprises within

the territory of the People’s Republic of China, the

application for construction enterprise qualifications

and the administration and supervision of foreign–

invested construction enterprises.

The term ‘foreign-invested construction enterprise’

mentioned in these regulations refers to a wholly

foreign-owned construction enterprise, or a Sino-

foreign equity construction joint venture or a Sino-

foreign cooperative construction enterprise estab-

lished within the territory of the People’s Republic

of China in accordance with Chinese laws and regu-

lations.

A foreign investor, which intends to establish a

foreign-invested construction enterprise within

the territory of the People’s Republic of China and

conduct construction business, shall, in accordance

with laws, obtain the approval certificate from the

relevant foreign trade and economic cooperation

administration department and register with the

State Administration of Industry and Commerce or

its authorized administration of industry and com-

merce at local levels, and the qualification certifi-

cate from the relevant construction administration

department.

Notice of the Ministry of Commerce on Entrusting

the Provincial Administrative Departments of Com-

merce to Examine, Approve and Administrate the

Foreign-invested Construction Enterprises (2005)

provides that the provincial administrative depart-

ments of commerce and the administrative commis-

sions of national economic and technical develop-

ment zones are entrusted to examine, approve and

administrate the foreign-invested construction en-

terprises.

According to the “Notice of the Ministry of Com-merce on Entrusting the Provincial Administrative

Departments of Commerce to Examine, Approve

and Administrate the Foreign-invested Construction

Enterprises (2005)” and “Regulations on Adminis-

tration of Foreign–Invested Construction Enterpris-

es”, the establishment of the foreign-invested con-

struction enterprise no matter what qualifications

it belongs to shall be examined and approved by

the foreign trade and economic cooperation admin-istration department at the provincial level and its

qualifications shall be examined and approved by

the construction administration department of the

People’s Government at the corresponding level.

Where the Chinese investor to a proposed Sino-for-

eign equity construction joint venture or a Sino-for-

eign contractual construction enterprise is an enter-

prise administered by the central government, the

establishment of the joint venture shall be examined

and approved by the foreign trade and economic

cooperation administration department of the State

Council and its qualifications shall be examined and

approved by the construction administration de-

partment of the State Council.


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16 Legal Framework

The procedures for the establishment of a foreign–in-

vested construction enterprise as a general contractor

with Super Grade or Grade A qualifications or a pro-

fessional contractor with Grade A qualifications are:

1. The applicant shall submit an application to the

foreign trade and economic cooperation admin-

istration department of the people’s government

of the province, the autonomous region or the

directly administered municipality where the pro-posed foreign-invested construction enterprise is

to be established.

2. The foreign trade and economic cooperation ad-

ministration department of the People’s Govern-

ment of the province, the autonomous region or

the directly administered municipality shall com-

plete the preliminary examination within 30 days

of receiving the application, and shall, if it grants

the preliminary approval, submit the applicationto the foreign trade and economic cooperation

administration department of the state council

for further approval.

3. Within 10 days of receiving the application for

further approval, the provincial commercial ad-

ministrative department shall solicit the opinions

of the construction administrative department

at the corresponding level. The construction ad-

ministration shall provide its opinion in writing

within 30 days of receiving the request. Within

30 days of receiving the response, the provincial

commercial administrative department shall de-

cide whether or not to approve the application

in written form. If the application is approved,

a foreign-invested enterprise certificate shall be

granted; if the application is not approved, rea-

sons for the disapproval shall be given in written

form.

4. Within 30 days of receiving the approval certifi-

cate, the applicant shall register with the relevant

registration department.

5. After obtaining the business license for the le-

gal entity, the application by the foreign-invested

construction enterprise for qualification approval

shall be conducted in accordance with Regula-

tions on Administration of Construction Enter-

prise Qualifications.

According to article 8, the procedures for the es-tablishment of a foreign-invested construction en-

terprise as a contractor or a specialized contractor

with Level B or lower qualifications or any of the

subcontractor qualifications shall be administered

by the construction administration department and

the foreign trade and economic cooperation admin-

istration department of the people’s government of

the province, the autonomous region or the directly

administered municipality based on local conditionswith reference to Article 7 of these regulations and

Regulations on Administration of Construction En-

terprise Qualifications.

Examination and approval of qualifications of the

foreign-invested construction enterprise by the con-

struction administration department of the people’s

government of the province, the autonomous re-

gion or the directly administered municipality shall

be recorded with the construction administration

department of the State Council within 30 days af-

ter the approval is given.

The application by a foreign-invested construction

enterprise for upgrading it`s qualifications or adding

additional qualifications in addition to major items

shall be made to the relevant construction admin-

istration department in accordance with relevant

regulations.


17/25

Legal Framework 17

An applicant who intends to establish a foreign-in-

vested construction enterprise shall submit the fol-

lowing documents to the relevant foreign trade and

economic cooperation administration department:

1. Application forms to establish a foreign-invested

construction enterprise signed by the investor’s

legal representative;

2. The feasibility study report, prepared or accepted

by the investors;3. The contract for the establishment of a foreign-

invested construction enterprise and the articles

of association signed by the investor’s legal rep-

resentative (only the articles of association is re-

quired for the establishment of a wholly foreign-

owned construction enterprise);

4. The notification on pre-verification of the name

of the enterprise;

5. Certificate of legal person registration and certif-icate of the bank credit standing of the investor ;

6. Appointment documents and identity docu-

ments of the chairman of the board of directors,

members of the board of directors, managers,

persons in charge of engineering and techniques

to be appointed by the investor; and

7. Balance sheets and profit and loss accounts of

the investor within the recent three years audited

by a certified accountant or an accounting firm.

The applicant applying for foreign-invested con-

struction enterprise qualifications shall submit the

following documents to the relevant construction

administration department:

1. Application forms for the foreign-invested con-

struction enterprise qualifications;

2. The approval certificate of the establishment of

the foreign-invested construction enterprise;

3. The business license for the legal entity;

4. The bank credit standing of the investor;

5. Appointment letters and documentary evidence

of the investor’s designated chairman and mem-

bers of the board of directors, the persons in

charge of the finance, business operation, engi-

neering and techniques of the enterprise, etc. to

be appointed by the investor; and6. Balance sheets and profit and loss accounts of

the investor within the recent three years audited


7. Other materials as required by the provisions

concerning the qualifications of construction en-

terprises.

The total capital contribution of the Chinese party to

a Sino-foreign equity construction joint venture ora Sino-foreign cooperative construction enterprise

shall not be less than 25% of the registered capital.

Qualifications of Sino-foreign equity construction

joint ventures and Sino-foreign contractual con-

struction enterprises established prior to the imple-

mentation of these Regulations are required to be

re-examined and ratified in accordance with these

regulations and Regulations on Administration of

Construction Enterprise Qualifications.

All documents required to be submitted by an ap-

plicant under these regulations shall be in Chinese.

If the original documentary evidence is in a foreign

language, a Chinese translation shall be provided.


18/25

18 Legal Framework

Wholly foreign-owned construction enterprises may

only undertake the following types of construction

projects within the scope of their qualifications:

1. Construction projects funded totally by foreign

investments, foreign grants or foreign invest-

ments and grants;

2. Construction projects financed by international

financial organizations and awarded through in-

ternational tendering process in accordance withthe provisions of the loan agreement;

3. Sino-foreign jointly constructed projects where

the foreign investment is equal to or greater than

50%; Sino-foreign jointly constructed projects

where the foreign investment is less than 50%

but which Chinese construction enterprises can-

not undertake independently due to technical

difficulties and has been approved by the con-

struction administration departments of the peo-ple’s government of provinces, or autonomous

regions or directly administered municipalities;

4. China-invested construction projects which Chi-

nese construction enterprises cannot undertake

independently due to technical difficulties. Such

projects may be jointly undertaken by Chinese

and foreign construction enterprises and has

been approved by the construction administra-

tion departments of the people’s government of

provinces, or autonomous regions or directly ad-

ministered municipalities.

Article 16 Sino-foreign equity construction joint ven-

tures and Sino-foreign cooperative construction en-

terprises shall undertake construction projects within

the permitted scope of their grades of qualifications.

The criteria of grading of qualifications of foreign-

invested construction enterprises shall be in accord-

ance with the criteria of grading of construction en-

terprise qualifications promulgated by the construc-

tion administration department of the State Council.

Where a foreign-invested construction enterprise

undertakes a construction project as the general

contractor, it shall complete the principal parts of

the structure of the project by itself.


contracts for construction projects in the form of

a consortium with other construction enterprises,

the consortium shall contract for projects within the

permitted scope of the lower qualification grade.


contracts for construction projects beyond the per-

mitted scope of its qualifications in violation of ar-ticle 15 of these regulations, it may be fined at an

amount between 2% to 4% of the contractual price

of the construction. An order to suspend its busi-

ness operation for rectification may also be issued

and its qualification certificate may be demoted. In

serious situations, the qualification certificate shall

be revoked and any proceeds illegally obtained shall

be confiscated.


carrying out construction business violates the

Construction Law of the People’s Republic of Chi-

na, the Tendering and Bidding Law of the People’s

Republic of China, Regulations on Administration

of Engineering Construction Quality and Regula-

tions on Administration of Construction Enterprise

Qualifications and other relevant laws, regulations

and rules, it shall be penalized in accordance with

relevant provisions.


19/25

Legal Framework 19


foreign-invested construction and engi-

neering design enterprises

A foreign investor, which intends to establish a for-

eign-invested construction and engineering design

enterprise within the territory of the People’s Re-

public of China and carry out construction and en-

gineering design business shall, in accordance with

laws, obtain the foreign-invested enterprise approv-

al certificate from the relevant foreign trade andeconomic cooperation administration department

and register with the State Administration of Indus-

try and Commerce or its authorized administration

of industry and commerce at local levels, and also

obtain the qualification certificate of construction

and engineering design enterprise from the relevant

construction administration department.

The application for and the examination and ap-proval of the establishment of a foreign-invested

construction and engineering design enterprise and

the qualifications shall be managed by a grading

and categorization system.

Where an applicant is to apply for Grade A qualifi-

cations for construction and engineering design or

other Grade A or Grade B or other Grades qualifica-

tions for construction and engineering design, the

establishment of the foreign-invested construction

and engineering design enterprise shall be exam-

ined and approved by the provincial commercial ad-

ministrative department and its qualifications shall

be examined and approved by the construction ad-

ministration at the corresponding level.

The procedures for the establishment of a foreign-

invested construction and engineering design enter-

prise and the application for construction and engi-

neering design qualifications or other Grade A or B

engineering design qualifications shall be:

1. The applicant shall submit an application to the

foreign trade and economic cooperation admin-

istration department of the people’s government

of the province, the autonomous region or the

directly administered municipality where the

proposed foreign-invested construction and en-

gineering design enterprise is to be established.2. The foreign trade and economic cooperation ad-

ministration department of the people’s govern-

ment of the province, or the autonomous region

or the directly administered municipality shall

complete the preliminary examination within

30 days of receiving the application, and shall,

if it grants the preliminary approval, submit the

application to the foreign trade and economic

cooperation administration department of theState Council for further approval.

3. Within 10 days of receiving the application for

further approval, the provincial commercial ad-

ministrative department shall solicit the opinions

of the construction administrative department at

the corresponding level. The construction admin-

istration department shall provide its opinion in

writing within 30 days of receiving the request.

Within 30 days of receiving the response, the

provincial commercial administrative department

shall decide whether or not to approve the ap-

plication and express such a decision in written

form. If the application is approved, a foreign-

invested enterprise certificate shall be granted; if

the application is not approved, reasons for the

disapproval shall be given in written form.

4. Within 30 days of receiving the approval certifi-

cate, the applicant shall carry out enterprise regis-

tration with the relevant registration department.


20/25

20 Legal Framework

5. After obtaining business license for the legal

entity, if the foreign-invested construction and

engineering design enterprise is to apply for the

construction and engineering design enterprise

qualifications, the application shall be carried out

in accordance with the Regulations on Adminis-

tration of Construction and Engineering Design

Enterprise Qualifications.

An applicant who intends to establish a foreign-in-vested construction and engineering design enter-

prise shall submit the following documents to the

relevant foreign trade and economic cooperation

administration department:

Application forms to establish a foreign-invested

construction and engineering design enterprise

signed by the investor’s legal representative;

1. The feasibility study report prepared or accept-

ed by the investor;

2. The contract for establishment of foreign-invest-

ed construction and engineering design enter-

prise and the articles of association signed by

the investor’s legal representative (only the the

articles of association are required for the estab-

lishment of a wholly foreign-owned construc-

tion and engineering design enterprise);

3. The notification of pre-verification of the name

of the enterprise;

4. Certificates of enterprise registration and cer-

tificates of bank credit standing of the country

or region where the investors are engaged as a

construction engineering design enterprise;

5. Appointment letters and documentary evidence

of the investor’s designated chairman and mem-

bers of the board of directors, managers and

the person in charge of techniques and engi-

neering, etc. to be appointed by the investors;

and

6. Balance sheets and profit and loss accounts of

the investor over the past three years audited


The applicant applying for foreign-invested con-

struction and engineering design enterprise qualifi-

cations shall submit the following documents to the

relevant construction administration department:

1. Application forms for the qualifications for a

foreign-invested construction and engineering

design enterprise;

2. The approval certificate for the establishment of

the foreign-invested construction and engineer-

ing design enterprise;

3. The business license for the legal entity;

4. The enterprise registration certificate and bankcredit standing certificate of the country or re-

gion where the investors are engaged as a con-

struction engineering design enterprise;

5. Certificates of practicing qualifications of the

individuals of the country or region where the

foreign service provider is located and the certif-

icates of the performances and credit standing

of the individuals and enterprises in construction

engineering design issued by the administrative

department in-charge or local government or

guild, association or notary public of the coun-

try where they are located; and

6. Other documents as required by Regulations on

Administration of Construction and Engineering

Design Enterprise Qualifications.


21/25

Legal Framework 21

All materials required to be submitted by an appli-

cant under these Regulations shall be in Chinese. If

the original documentary evidence is in a foreign

language, a Chinese translation shall be provided.

The foreign investor or the foreign service provider

of a foreign-invested construction and engineering

design enterprise shall be an enterprise engaged in

construction and engineering design or a certified

architect or a certified engineer in his or her homecountry.

The total capital contribution of the Chinese party to

a Sino-foreign equity construction and engineering

design joint venture or a Sino-foreign cooperatively

construction and engineering design joint venture

shall not be less than 25% of the registered capital.

The criteria of grading of qualifications of foreign-invested construction and engineering design enter-

prises shall be in accordance with the requirements

of grading of qualifications of construction and en-

gineering design enterprise issued by the construc-

tion administration department of the state council.

Where a wholly foreign-owned construction and

engineering design enterprise applies for the con-

struction and engineering design enterprise quali-

fications, the number of foreign service providers

who have been qualified as certified architects or

certified engineers in China shall not be less than

1/4 of the total number of certified professionals re-

quired under the qualification grading criteria, and

the number of foreign service providers who have

the relevant design experience shall not be less than

1/4 of the total number of key technical personnel

required under the qualification grading criteria.

Where a Sino-foreign equity construction and en-

gineering design joint venture or a Sino-foreign co-

operatively managed construction and engineering

design enterprise applies for the construction and

engineering design enterprise qualifications, the

number of foreign service providers who have been

qualified as certified architects or certified engi-

neers in China shall not be less than 1/8 of the total

number of registered professionals required under

the qualification grading criteria, and the numberof foreign service providers who have the relevant

design experience shall not be less than 1/8 of the

total number of key technical staff required under

the qualification grading criteria.

Each of the architects and engineers certified in

China and the key technical personnel of the for-

eign service provider in a foreign-invested construc-

tion and engineering design enterprise shall residewithin the territory of the People’s Republic of China

for no less than a cumulative period of 6 months

each year.

Where a foreign-invested construction and engi-

neering design enterprise carrying out construction

and engineering design activities within the terri-

tory of the People’s Republic of China violates the

Construction Law of the People’s Republic of China,

Regulations on Administration of Construction En-

gineering Quality, Regulations on Administration of

Prospecting and Designing of Construction Projects

and Regulations on Administration of Construction

Engineering Prospecting Design Enterprise Quali-

fications and other relevant laws, regulations and

rules, it shall be penalized in accordance with rel-

evant provisions.


22/25

22 Intercultural skills

5. Intercultural skills

After fixing the legal, fiscal and formal issues to be

able to work in China, you should not underestimate

another big topic, which you will have to face on a

daily basis in the middle kingdom – the cultural dif-

ferences. The following chapter will introduce you

to the basic rules of manner and behavior in China.

As you will see, this might prove very helpful in your

daily work with your Chinese colleagues.

5.1 Greetings / Titles / Exchangingbusiness cards

1. Shaking hands when greeting and leaving is now-

adays very spread among Chinà s business people

2. For most Chinese, titles are of big importance

and the best is to address people directly by us-

ing their professional title, or Mr., Mrs., or Miss3. You never should work in China without having

a set of business cards – English on one side,

Chinese on the other

4. When giving business cards, do it with both

hands, with the Chinese side facing the recipient.

5. When receiving business cards, to show inter-

est and look at them carefully. You should never

write on or fold a business card you are given.

6. After receiving the business card, never put it in

your wallet or one of your pockets. Carry a small

card case.

5.2 Gestures

1. Do not drop the chopsticks it is considered bad

luck.

2. Do not rub your chopsticks together before din-

ing. It implies that you have been given poor

quality chopsticks that may have splinters.

3. Never place your chopsticks straight up in your

bowl. By placing your sticks upright in your bowl

your will remind your host of joss sticks which

connotes death.

4. Do not blow your nose at the table or in public.

5. Do not refuse to drink. Even if you do not drink,

accept it.

6. Women should not shake legs while sitting,

snap fingers, or whistle.

7. It is common in China to show one’s surpriseor dismay by sucking air in quickly and loudly

through the lips and teeth.

8. Spitting in public is very common, doǹ t be sur-

prised to see people of every age and gender

doing that everywhere around you.

5.3 Gifts

1. When you meet Chinese people for the firsttime, an exchange of gifts is usually not com-

mon.

2. Writing pens of high quality are considered as

one of the most popular gifts in China.

3. Not suitable for gifts are : knives, scissors, letter

openers, clocks, straw sandals, a stork or crane,

handkerchiefs, anything white, blue or black,

and anything in groups of four

4. Gifts should always be nicely wrapped.

5. Gifts should not being opened right away unless

prompted to do so.

6. Like the business cards, receive and give gifts

with two hands. It is polite to refuse a gift sev-

eral times before accepting.

5.4 Communication in general

1. Chinese mostly speak in an indirect manner.

There is usually deeper meaning in their words


23/25

Intercultural skills 23

and sometimes what they mean is quite oppo-

site to what they say.

2. Chinese tend to stand a little less than arm’s

length from one another.

3. Chinese favor direct eye contact.

4. Do not beckon with the forefinger, but extend

an arm and make a scratching motion with the

fingers.

5. Do not point using the index finger, but use an

open palm.6. Do not use your feet to move something or put

your feet on furniture.

7. Do not whistle or snap your fingers at anyone.

8. Do not use large hand movements. The Chinese

do not speak with their hands and your move-

ments may be distracting to your host.

9. Do not stick your chopsticks upright in a bowl of

rice as it is reserved for funerals. Avoid sucking

and biting your chopsticks as well.

5.5 Business behavior

1. Contacts should have been established already

prior to your trip.

2. Let the most important member of your com-

pany lead important meetings. Chinese highly

value rank and Status and could be offended by

being welcomed by a subordinate.

3. Generally, it is rude to be late in business situa-

tions. But to show importance, a boss, or one

with a higher social or political status, may be

late as a show his/her prominence.

4. Business discussions begin mostly with small

talk to remove the tension. Then the host begins

the business discussion.

5. Appointments are a must for business.

6. Allow your Chinese partners to leave a meeting

first.

5.6 Negotiations

1. Confrontation, hard selling and pressure tactics

are not valued in China. Chinese value relation-

ship building and have a society, based on col-

lective harmony.

2. Never try to approach a subordinate to force a

fast result. Decisions are only made by the head

of a group. This could take a long time, be pa-

tient.3. The word “no” is seldomly used by Chinese, they

prefer an indirect communication style

4. Superstition in Chinese culture is still of impor-

tance: Many still want to consult with the stars

or wait for a lucky day before they make a deci-

sion.

5.7 Dining

1. You should generally taste all the dishes you are

offered, even if it should cost you some effort.

2. You should not start to eat or drink before the

host himself/herself.

3. Do never discuss business issues at meals.

4. Do not eat all of your meal. If you eat all of your

meal, the Chinese will assume you did not re-

ceive enough food and are still hungry.


24/25

24 Legal Framework

6. Further links

Newspapers / media:

http://www.chinadaily.com.cn/

http://english.cctv.com/01/index.shtml

http://www.xinhuanet.com/english2010/

http://www.shanghaidaily.com/

http://english.peopledaily.com.cn/

Intercultural topics:http://chinese-school.netfirms.com/goldenhints.html

http://chinese-school.netfirms.com/guanxi.html

http://www.china-window.com/china_business/china_business_tips/business-etiquette-in-chi.shtml

Language courses:

http://www.linguanaut.com/english_chinese.htm

http://www.chinadaily.com.cn/language_tips/index.html

Foreign pages:http://www.peking.diplo.de/Vertretung/peking/de/Startseite.html

http://china.ahk.de/ch/chamber/shanghai/

http://www.gtai.com/web_en/homepage

http://english.gov.cn/

http://www.fmprc.gov.cn/eng/

http://www.auswaertiges-amt.de/diplo/en/Laenderinformationen/01-Laender/China.html

https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html

Travel information:

http://www.lonelyplanet.com/asia

http://www.travelchinaguide.com/cityguides/

Visa forms:

http://www.china-embassy.org/eng/hzqz/zgqz/t84240.htm

http://www.visarite.com/China_Visa_Form.htm

http://www.fmprc.gov.cn/chn/pds/fw/lsfw/qzjj/P020070412415235161751.pdf

http://www.chinadaily.com.cn/http://www.chinadaily.com.cn/http://english.cctv.com/01/index.shtmlhttp://english.cctv.com/01/index.shtmlhttp://www.xinhuanet.com/english2010/http://www.xinhuanet.com/english2010/http://english.peopledaily.com.cn/http://english.peopledaily.com.cn/http://chinese-school.netfirms.com/goldenhints.htmlhttp://chinese-school.netfirms.com/goldenhints.htmlhttp://chinese-school.netfirms.com/guanxi.htmlhttp://chinese-school.netfirms.com/guanxi.htmlhttp://www.china-window.com/china_business/china_business_tips/business-etiquette-in-chi.shtmlhttp://www.china-window.com/china_business/china_business_tips/business-etiquette-in-chi.shtmlhttp://www.linguanaut.com/english_chinese.htmhttp://www.linguanaut.com/english_chinese.htmhttp://www.chinadaily.com.cn/language_tips/index.htmlhttp://www.chinadaily.com.cn/language_tips/index.htmlhttp://www.peking.diplo.de/Vertretung/peking/de/Startseite.htmlhttp://www.peking.diplo.de/Vertretung/peking/de/Startseite.htmlhttp://china.ahk.de/ch/chamber/shanghai/http://china.ahk.de/ch/chamber/shanghai/http://www.gtai.com/web_en/homepagehttp://www.gtai.com/web_en/homepagehttp://english.gov.cn/http://english.gov.cn/http://www.fmprc.gov.cn/eng/http://www.fmprc.gov.cn/eng/http://www.auswaertiges-amt.de/diplo/en/Laenderinformationen/01-Laender/China.htmlhttp://www.auswaertiges-amt.de/diplo/en/Laenderinformationen/01-Laender/China.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/ch.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/ch.htmlhttp://www.lonelyplanet.com/asiahttp://www.lonelyplanet.com/asiahttp://www.travelchinaguide.com/cityguides/http://www.travelchinaguide.com/cityguides/http://www.china-embassy.org/eng/hzqz/zgqz/t84240.htmhttp://www.china-embassy.org/eng/hzqz/zgqz/t84240.htmhttp://www.visarite.com/China_Visa_Form.htmhttp://www.visarite.com/China_Visa_Form.htmhttp://www.fmprc.gov.cn/chn/pds/fw/lsfw/qzjj/P020070412415235161751.pdfhttp://www.fmprc.gov.cn/chn/pds/fw/lsfw/qzjj/P020070412415235161751.pdfhttp://www.visarite.com/China_Visa_Form.htmhttp://www.visarite.com/China_Visa_Form.htmhttp://www.china-embassy.org/eng/hzqz/zgqz/t84240.htmhttp://www.china-embassy.org/eng/hzqz/zgqz/t84240.htmhttp://www.travelchinaguide.com/cityguides/http://www.travelchinaguide.com/cityguides/http://www.travelchinaguide.com/cityguides/http://www.lonelyplanet.com/asiahttp://www.lonelyplanet.com/asiahttps://www.cia.gov/library/publications/the-world-factbook/geos/ch.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/ch.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/ch.htmlhttp://www.auswaertiges-amt.de/diplo/en/Laenderinformationen/01-Laender/China.htmlhttp://www.auswaertiges-amt.de/diplo/en/Laenderinformationen/01-Laender/China.htmlhttp://www.fmprc.gov.cn/eng/http://www.fmprc.gov.cn/eng/http://english.gov.cn/http://english.gov.cn/http://www.gtai.com/web_en/homepagehttp://www.gtai.com/web_en/homepagehttp://china.ahk.de/ch/chamber/shanghai/http://china.ahk.de/ch/chamber/shanghai/http://www.peking.diplo.de/Vertretung/peking/de/Startseite.htmlhttp://www.peking.diplo.de/Vertretung/peking/de/Startseite.htmlhttp://www.chinadaily.com.cn/language_tips/index.htmlhttp://www.chinadaily.com.cn/language_tips/index.htmlhttp://www.chinadaily.com.cn/language_tips/index.htmlhttp://www.linguanaut.com/english_chinese.htmhttp://www.linguanaut.com/english_chinese.htmhttp://www.china-window.com/china_business/china_business_tips/business-etiquette-in-chi.shtmlhttp://www.china-window.com/china_business/china_business_tips/business-etiquette-in-chi.shtmlhttp://www.china-window.com/china_business/china_business_tips/business-etiquette-in-chi.shtmlhttp://chinese-school.netfirms.com/guanxi.htmlhttp://chinese-school.netfirms.com/guanxi.htmlhttp://chinese-school.netfirms.com/goldenhints.htmlhttp://chinese-school.netfirms.com/goldenhints.htmlhttp://english.peopledaily.com.cn/http://english.peopledaily.com.cn/http://english.peopledaily.com.cn/http://www.xinhuanet.com/english2010/http://www.xinhuanet.com/english2010/http://english.cctv.com/01/index.shtmlhttp://english.cctv.com/01/index.shtmlhttp://www.chinadaily.com.cn/http://www.chinadaily.com.cn/


25/25

ASIA-INVEST PROGRAMME

The Asia-Invest Programme was launched in 1997

as an initiative of the European Union to promote

and support business co-operation between the EU

Member States and Asia. The Programme provides

assistance to intermediary organisations to facilitate

mutually beneficial partnerships between EU and

Asian companies, in particular small and medium-

sized enterprises (SMEs), as well as to strengthen

the framework conditions to increase trade and

investment flows between the two regions. The

Programme will continue for another 5-year period

from 2003-2007, with a budget for project funding

of ，35 million, in which three main areas of activ-

ity will be pursued: (i) Business to business match-

making and partnership building; (ii) Asian private

sector development, and (iii) Institutional capacity

building, networking and dialogue.

Documents

Expertise Guide Asia - Doing Business in China