Doing Business in China For Dummies®

Getting Government Approvals

Getting business approvals in China can be quite a painful process for many companies. Approvals seem to take forever. Sometimes, you wait for long periods of time, only to hear a refusal. You can help your company get the approvals it needs by working very closely with government officials.

Forward-thinking government officials in some cities, such as Suzhou and Shunde, are making it easier for foreign investors to weave their way through the system. The concept is all about one-stop services that the local government provides to investors. The government coordinates approval, registration, permits, and more for foreign investors.

Earning your approvals

Contrary to what some people think, getting approvals in China is not about asking government officials for favors. Getting approvals in China just doesn’t work that way. Your company needs to get approvals the old-fashioned way: by earning it from the Chinese authorities.

Some officials may expect compensation for helping your company in China. This compensation can take many forms, from outright bribes to paying for foreign travel to finding a family member a job. Unfortunately, some officials may ask for these incentives in exchange for a favor. Stay clear of any shady business dealings. If you engage in corrupt activities in China, not only are you violating Chinese law, but you may be violating ...