Download e-book for kindle: China Goes West: Everything You Need to Know About Chinese by J. Backaler

By J. Backaler

ISBN-10: 1137293934

ISBN-13: 9781137293930

ISBN-10: 1349671223

ISBN-13: 9781349671229

Presenting an unrivalled point of view into the inner-workings of chinese language firms and their growth plans for foreign markets, this ebook combines government interviews and first-hand bills delivering the sorely wanted context to the increase of chinese language businesses in domestic and in another country markets and the way the West can effectively compete.

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Additional resources for China Goes West: Everything You Need to Know About Chinese Companies Going Global

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Starting with a single route from Wuhan to Shanghai in 2006, its routes grew to 48 daily flights to cities across mainland China, along with direct routes from Wuhan to Hong Kong and Macao by 2008. Operating an airline requires a tremendous amount of capital for expenses including aircraft leases, fuel, airport services and employee salaries. 8 million RMB (approximately $540,000) of debt and filed for bankruptcy in 2009. 9 billion RMB (approximately $2 billion) loss the previous year. SASAC provided China Eastern with 7 billion RMB (approximately $1 billion) to keep the firm afloat.

The guanxi effect The third driver explaining why Chinese firms enter multiple business lines may be the most fascinating of themall - and in many cases it has nothing to do with economic factors. Most businesspeople and China experts emphasize the importance of guanxi (:;X;: -*) when doing business in China. Guanxi, which translates as "relationships," is a critical resource for conducting business in any country. Whether you're operating in a business environment governed by contracts or one based on more informal agreements, ultimately people do business with people they like, or at least trust.

38 According to Barry Naughton, professor at the University ot California, San Diego, "SASAC's mandate is to 'own' these corporations [SOEs] and to manage them in the public interest. "39 Its main objective is to increase the profitability and value of the state-owned enterprises underneath its control. SASAC approval is required tor a central SOE to invest overseas. iv. ftU SAFE manages China's extensive foreign exchange reserves. Administratively it is located under the People's Bank of China (PBOQ, China's central bank.

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China Goes West: Everything You Need to Know About Chinese Companies Going Global by J. Backaler

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