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Part 1 Before Starting Your Business in China........................................................................... 1 1.1 Understanding China: A Country of Vast Regional Differences.................................... 3 1.1.1 Historical Background................................................................................................ 3 1.1.2 Regional Differences.................................................................................................. 3 1.2 Understanding the Government’s Organization & Role of Key Authorities................... 5 1.2.1 Central Government Organization Chart................................................................... 5 1.2.2 Key Authorities in China............................................................................................. 5 1.3 Understanding China’s Investment Policies.................................................................. 7 1.3.1 Open Door Policy since 1978.................................................................................... 7 1.3.2 China’s Basic Means of Absorbing Foreign Investment............................................ 8 1.3.3 Exploitation................................................................................................................. 9 1.3.4 BOT Projects.............................................................................................................. 9 1.4 Stages of Foreign Involvement.................................................................................... 10 1.5 Changes after Joining WTO & Worldwide Financial Crisis......................................... 11 1.5.1 Major Commitments for WTO................................................................................... 11 1.5.2 QFII........................................................................................................................... 12 1.5.3 QDII.......................................................................................................................... 12 1.6 Regional Imparity Regarding Investment Environment............................................... 13 1.6.1 Best Regions for Business in China......................................................................... 13 1.6.2 Gateway Cities Versus 2nd Tier & 3rd Tier Cities.................................................... 14 1.6.3 Eastern China & Yangtze Delta................................................................................ 15 1.6.4 Central & Western China.......................................................................................... 16 1.6.5 North Eastern China................................................................................................. 17 |
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