Doing Business in China For Dummies®

Make Sure Your Company Is Properly Protected

Many foreign companies take on too much business risk in China — sometimes without even knowing it. They usually find out the hard way, through unexpected losses to their business.

Make sure your company — and not your Chinese partner — controls the risk management and insurance program. So when you’re negotiating with a Chinese partner, tell them that proper insurance coverage is important — so much so that you want to make the arrangements. (If you plan to share costs with them, be sure to get that point in writing from the Chinese side.) You want to make sure your company assets, any legal liabilities, and potential future profits are properly protected. Chapter 17 can tell you more about risk management.