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Stolpersteine und Chancen bei einer Expansion nach China
1. Stolpersteine und Chancen bei
einer Expansion nach China
Susanne Sahli & Nathan Kaiser
Egerkingen, 9. Juli 2012
www.eigerlaw.com www.truecolours.ch
2. Agenda
⢠Introduction
⢠Stories and Anecdotes
⢠Does law matter in China?
⢠What are contracts worth in China?
⢠HR: Success factors as an Expatriate
⢠HR: Leadership in Greater China
3. Stories and Anecdotes
⢠two party Joint Venture with three parties
⢠the eternal, superhuman Joint Venture
⢠Incentives to come - and to stay!
⢠your trusted distributor in China
⢠your independent middle man in China
⢠SAFE: financing limits that really apply
⢠recognition of foreign court judgments
4. Stories and Anecdotes
Typical HR Problem Cases
⢠the local CFO from Germany
⢠the local GM
⢠the foreign, very flexible, company in China
⢠your trusted accountant
⢠the foreign young business man
⢠... and just normal employees...
5. Stories and Anecdotes
The environment is different in China:
⢠Stock market in China
⢠Focus on FIE / comparison with local
companies
⢠Internal fraud â âĂ la Chinoiseâ
⢠Environmental issues â âĂ la Chinoiseâ
⢠Food issues â âĂ la Chinoiseâ
⢠Small customs issues â âĂ la Chinoiseâ
6. Stories and Anecdotes
Typical Cases of Fraud:
⢠Inventory theft
⢠Accounting fraud
⢠Fraud at POS
⢠Kickbacks to suppliers / from customers
⢠Competing activities
⢠Breach of confidentiality
⢠Tax and customs fraud
7. HR Landscape in China
⢠Cultural and social settings in a rapidly
evolving society
⢠âguanxiâ as cornerstone of business model?
⢠Lack of enforcement by judicial apparatus
⢠Immature HR market: power combined with
low salary
⢠... opposite: GM with "no power" but high
salary
⢠The poker game under the table
8. HR landscape in China
⢠18 Mio labor enter workforce every year
⢠The war and retention for top talent intensifies,
strong headwinds for Caucasians
⢠Suitably, qualified leaders with fitting values are
hard to find and come at high cost
⢠Localization of top level positions continues
⢠Solutions for Executive search, assessments,
talent management, coaching and on boarding
programmes highly in demand
9. Leadership in China demands:
⢠Understanding of cultural differences
⢠Ability to look at things from others
personâs perspective
⢠Being comfortable with uncertainty
⢠Flair for situational leadership
⢠Rapid decision making capability
combined with patience
⢠Robust mentally and physically
10. Expatriate transition:
From an employerâs point of view
⢠What are selection criteria and do we have a
sound and proper recruitment process in place?
⢠How do we include spouses and family members
in the process?
⢠How could a transition coaching help in the first 6
critical months?
⢠Do we give access to network opportunities (e.g
Swiss business community)?
⢠How do we use the gained know-how when the
assignment is completed?
11. Expatriate transition:
From an employeeâs point of view
⢠How do I prepare myself and my accompanying
person?
⢠Are my language skills sufficient to âsurviveâ?
⢠Who can help me to make the transition as smooth as
possible? Do I have access to social and business
related network opportunities?
⢠Am I aware of the cultural differences, local living
conditions and leadership requirements?
⢠Am I flexible enough to deal with uncertainty?
⢠What is my motivation to do it?
12. How to do it right:
Wie machen es denn die Chinesen?!?
13. How to do it right:
Due Diligence:
⢠targets: employees, suppliers, customers,
(JV) partners
⢠verify SAIC, TM, domain names and similar
registration documents
⢠Professional advice is recommended
Documentary:
⢠Employment agreements & Sales Contracts:
⢠Confidentiality, IPR, Non-competition
Organisational:
⢠family / accompanying person
14. How to do it right:
Organizational:
⢠HR organization and processes
⢠controls, surprise visits, electronic surveillance,
etc.
⢠Whistle blower / hotline
⢠Just because youâre paranoid doesnât mean
theyâre not out there to get you...
Comprehensive HR Compliance Training:
⢠(regular) interviews
⢠Sound selection process and criteria
⢠(regular) training and retention programmes
⢠Sign-offs?
15. What to do when things go wrong:
⢠Speed & Coordination
⢠facts and information gathering
⢠Coordination with service investigators,
(external/internal) CPA, attorneys,
(external/internal)
IT personnel
⢠Once facts are clear, establish the law...
⢠prepare options and scenarios, game plan
⢠Legal actions: use strategy, combinations,
staggered attacks
16. What to do when things go wrong:
⢠Know thy authorities!
⢠Know the media!
⢠Know thy law!
⢠Know thy enemy!
⢠Use competent external help and specialists
⢠Strike a balance: formal and informal actions
⢠In China: use âadminstration-friendlyâ tactics