Institutional Supports for Commercial Activities

Abstract

Foreign companies that want to explore the Chinese market need to adapt to the speed and flexibility prevailing in the country. Newcomers in the Chinese market can get information and support from a wide range of sources. The European Union supports SMEs going to China with a service centre in Beijing and a dedicated Intellectual Property (IP) Helpdesk. The international industry has formed chambers of commerce and industry associations to share information and voice its interests within China. Most Chinese cities have established sister relationships with cities abroad, many of these connections also supporting economic cooperations and serving the industry. The Chinese Ministry of Commerce (MOFCOM) and its subordinated organisations for trade promotion have hard targets to attract foreign investment and provide dedicated support. The foreign invested industry in China has developed considerable influence on policymaking in China, China has developed a system to solicitate public opinions, and government departments are willing to learn from international best practices. Fact-based advocacy efforts provide tangible benefits for foreign invested company, as shown in two case studies: waiving the request of animal tests for imported cosmetics and lifting restriction on international cargo relay. Because of a language barrier and geographical and cultural distance, for companies outside China, it seems difficult to obtain reliable information and establish contact to Chinese decision-makers, and the Western concept of ‘lobbying’ seems to be unknown in China. However, in more than four decades of China’s opening-up policy, a vast network of relationships has developed. Many organisations are willing to provide information about business in China, and Chinese authorities are ready to adopt reasonable and fact-based recommendations by the international business community.