Transcript China and Chinese - Carnegie Mellon University

An overview of Chinese
by Lijuan Yang
China has 56 ethnic groups,
including Han and 55 minorities.
Minorities own rich artistic culture.
Wood mask
Battik
Shadow stone carving
Sculpture
Minorities culture also offers business
opportunity. (an example of room decoration)
Bright side: Some examples of
Chinese active abroad
Bright side: Achievements
gained by Chinese.
Liwei Yang,
Tianqiao
Chen,
the one
firstof the
richest Chinese
Chinese
blasted at
into
32, is
credited with creating
space.
China's online game
industry.
Bright side: Prosperous
metropolitan life
Shady side: Still quite a few people
live under the poverty line.
HOPE Project brings many children
back to school, improving the poor
situation significantly.
He is studying in an institute
of technology as a sophomore
now.
He is serving in army
now.
Another example
She is graduated from Anhui University
and working in a bank now.
Summary

We are proud of our enriched
multinational culture.

Like any other country, China is not
perfect.

China is entering into the international
stage with a dynamic power.
Beijing and Shanghai at a Glance
-What you may not know yet
by Weiwei Liang
The Origins

Beijing （北京）
Date: 770 BC to 476 BC
 Name:（蓟，ji）


Shanghai （上海）
Date: Around the 5th century
 Name: （沪，扈，hu）


What happened in West at that time?
The first recorded Olympic game – 776 BC
 Fall of Western Roman Empire – 5th century

Today
Beijing
Population density GDP per capita
(Per square km)
(USD)
866
$3,047
Shanghai
2,700
$4,414
NYC
10,292
$37,800*
Tokyo
5,655
$28,000*
*US and Japan country-wide GDP per capita respectively
Source: wikipedia.org; Data for year 2003
Food – Beijing


Beijing Duck
（烤鸭）
Beijing Noodle
(with meat sauce)
（炸酱面）
Food - Shanghai


Shanghai Wonton
（馄饨/云吞）
Shanghai Crab
（大闸蟹）
Housing - Beijing

Beijing Courtyard
（四合院）
Housing - Shanghai
Shanghai Shikumen
（石库门）

Bars - Beijing

Hou Hai （后海）

San Li Tun （三里屯）

Chao Yang（朝阳公园）
Bars - Shanghai

Xin Tian Di （新天地）
What are happening

Beijing (北京)


2008 Olympic Games
Shanghai (上海）

2010 World Expo
Q&A
A. 大闸蟹
B. 石库门
C. 三里屯
D. 炸酱面
What is this?
E. 四合院
Q&A
Antelope
Fish
Flame
???
Panda
Swallow
 An
emerging power
China’s Economy
by Qiaoqiao Zhao
A Mixed View
China’s Rural Hinterland
Quickening Pace
Percentage Change in GDP
20.00%
15.00%
China
10.00%
U.S.
5.00%
0.00%
2000
2002
2004
Facts




China’s GDP increased from $1.1 trillion to
$1.6 trillion from 2000 to 2004
China's foreign-exchange reserves jumped
more than $200 billion in 2004 to reach
$609.9 billion
China has about $1 trillion in personal
savings and a saving rate of close to 50%.
China has 10 billionaires, up from 3 last year.
The 40-richest people are worth a collective
$26 billion, up from $18 billion last year.
Regional Development
Economic Powerhouse
Regions

Three Delta
Regions
 Pearl
 Three
river
delta
 Yangtze river
delta
 Bohai Sea
economical circle
Delta Regions
 Bohai
Sea
Economical Circle
 Yangtze River Delta
 Pearl River Delta
Northeast and Northwest
China

Northeast China
Revitalization

West China Development
12 provinces participation
Business Opportunities in China
Vertical Industries
by Kaiping Chen
China: the engine of world economy
growth
Purchasing power is growing
Common Infrastructure
Investment Demand
Highlights
Key Int’l
Players
Roles
Market
($Billion)
Energy
Crude Oil, Coal,
LNG, Electricity
Exxon, Shell, BP
Exploitation,
Gas Stations,
Chemicals,
Investor
150
Telecom
GSM/CDMA, 3G,
Cell Phone,
Internet
Motorola, Nokia,
Cisco, Ericsson,
Qualcomm,
Siemens
Equipment Provider,
Local Manufacturer
Investor
Transportation
Airlines, Railway,
Super Highway,
Automobile
Boeing, Airbus,
GM, Chrysler,
Toyota, Honda,
Volkswagen,
Siemens
Manufacturer,
Investor
80
100
Investing in China is profitable
Workforce: local and returnees
Environment:
• WTO and government policies
• Stable business environment
Breaking
Even or
Small Loss
23%
Large Loss
4%
Very
Profitable
16%
Result:
Profitable
57%
Venture Capital in China




Foreign VCs: 70% funding
more early state
Main sector: IT with semi-conductor (400M)
Main regions
VC: Invest and Exit


Huge Market:

Niche / Emulating

high growth / best management
Clear exit route

Market leaders - IPO, followers - acquired

24 VC-backed IPO in 2004, 4.3 billions

Ctrip.com; Baidu; Shanda; Linktone
Financial Market in China


Banking

system

Foreign investment

New opportunities: Electronic / data / credit
system

Financial IT: 3.3 billion
Securities market, QFII
- Goldman, Citi, JPM, CSFB, UBS, ML
Practical Tips

Understand the market
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
Visit China
Know and sell the demands
Localize your products
Conduct due diligence and research
Find a strong and experienced partner
Manage realistic expectations


Have a long-term strategy
Have an “exit” plan
Negotiating with Chinese Company
by Hongbo Xu
Decision Making Procedure

A typical Chinese company can have very
different organizing structure, positions and
titles from a western company

Not always the one with higher title holds
real power
Pace of Decision making

Western companies: deadline-driven;
rapid decision

Chinese companies: the pace can be fast
and slow simultaneously
When “Yes” Means “No”

Chinese people and western people have different
ways to express opinion
American Way

Chinese Way
Negative replies are considered impolite. “No big
problem” usually means “there are still problems”
The Role of Guanxi

Guanxi=“Network” in Chinese way

Guanxi can help you to get more
opportunity to present your company
and your products.
Business courtesy

Greeting:
- Handshaking (formal)
- Nod and smile (informal)
Business Courtesy

Addressing
- Family name + Given name
- Only family members or close friends
use first names
- A married Chinese woman usually
retains her maiden name
Business Courtesy

Business card: two hands
Summary

China has different culture background
and different economic system

Do in Rome as Rome does
China and U.S.
mutually beneficial partners
Presenter:
Two countries behind numbers
Two countries behind numbers
(continued)

China has $1 trillion in personal saving and a
saving rate close to 50%. The US has about
$158 billion and saving rate of 2%

Shanghai has 4,000 skyscrapers-double the
number in NYC. Still 17% of the entire
Chinese live on $1 a day.

China has 100 million internet users (second
to U.S.’s 135 million) and 300 million cell
phone subscribers.
China as the word’s workshop
 2/3
of all photocopiers,
microwaves, DVD players and
shoes
 ½ of all digital cameras
 2/5 of all personal computers
 1/5 of all clothing
Myth:
+
=
Support: China to Wal-Mart: $18 billion/year. $60 per person in U.S.
A True Example:
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Apex Company was founded in 1997 when a DVD
player sold for around $1000.
I bought my Apex® DVD player at Wal-Mart in
Wisconsin in 2001 for $50.
You bet they made every unit in China.
DVD becomes household product because of such
players.
The Google guy in China
The 100 million dollar man
Happily ever after for
China



in
11/12/1987, first ever western fast food
restaurant was opened in mainland China.
In 2002, KFC opened the first-ever drive-thru
restaurant in China.
In 2004, operating profits for the China
Division were more than $200 million and up
over 20 percent.
Store numbers
2000
Store number
2005
5 year growth
U.S.
5,364
5,525
1%
China
400
1400
350%
Summary
China is now the third-largest trading
partner for the United States (after
Canada and Mexico).
 A Rising China provides challenges and
endless opportunities for China and
U.S., economically and politically.
 The best is yet to come.

Q&A