Foreign Trade in China. How does an International Company successfully enter and establish foreign trade in China.

Foreign Trade in China : How does an International Company successfully enter and establish foreign trade in China

Today , the modern world is all about global integration and innovation which is achieved through the exchange of ideas and services , people and goods . Broadly speaking we can outline three vehicles through which countries can integrate in economic terms with the rest of the world

Through the importing or exporting of technological and organizational innovations

Through merchandise trade and the import and export of capital

Through international migration

The need is to reflect

upon the development strategies adopted by large economies . After the 1950s , certain economies in Asia successively adopted an export-oriented development strategy , which has led to the rise of the so-called "four tigers " or "four dragons . Large economies like China and India were largely encouraged by IMF and World Bank to apply the export-oriented strategy in developing the economy . This impacted the world economy with a completely different challenge for the whole world to cope with

A news agency HYPERLINK "http /www .pbc .gov .cn /english /detail .asp ?col 6400 ID 572 http /www .pbc .gov .cn /english /detail .asp ?col 6400 ID 572 ' says

China has made tremendous efforts and has achieved remarkable progress In late 2003 , Bank of China and the China Construction Bank conducted a high degree renovation to restructure the financial processes , also including capital replenishment , writing-off of non-performing assets and joint-stock transformation . The same renewal process was also carried out in the Industrial and Commercial Bank of China in the first half of this year . According to the current statistics , three out of four state-owned commercial banks have undergone complete financial restructuring and also have implemented join-stock reform measures . In the year 2003 , reform of the 30 ,000 rural credit cooperatives was initiated , and more than half of the work has been completed . Of course banking reform will take a long period of time , and we cannot wait to start reforming the exchange rate regime until all banking reform measures have been completed . But most of the reform measures should have been put in place

China 's commercial banking system comprises of four levels :-

Wholly state-owned commercial banks

Joint-stock commercial banks

City commercial banks

Rural banking institutions

Out of these 70 to 80 percent of each level have basically completed reform and restructuring and have entered into a favorable development stage

By looking at the above flourishing conditions one should know the in outs of the policy of foreign trade in china to establish a company in China ' - Governor Zhou Xiaochuan speech in Canada

Some facts of China Import /Export

Source : - HYPERLINK "http /www .uscc .gov /hearings /2004hearings /written_testimonies /04_02_05w rts /terrystewartwrtest .htm http /www .uscc .gov /hearings /2004hearings /written_testimonies /04_02_05wr ts /terrystewartwrtest .htm

Aitken , B , G . H . Hanson , and A . Harrison (1997 . `Spillovers , Foreign Investment , and Export Behavior . Journal of International Economics , 43 (1 : 103-32

The U .S . trade deficit with China was 124 .0 billion in 2003 , a 20 .3...