I have been
living overseas and am involved in numerous business operations including
start-ups. While living in Seoul, South Korea, my wife and I built www.SeoulSearching.com,
endorsed by the South Korean government and featured on Arirang TV's show
called Heart To Heart. My wife and I now live in Beijing, China, minutes
from the Central Business District where we both run multinational companies.
My wife has
three Bachelor's degrees in Chinese, Spanish, and International Affairs.
She reads, writes, and speaks several languages to include Mandarin Chinese
which really helps when doing business. Based on my experience, people
tell me I should write a book. So I am writing this article to touch on
the key points that you should know about to survive in China.
Visas
If you are
coming here for business, it is faster, and cheaper to come into China
on an L visa (tourist visa) and upgrade to an F visa (business
visa) later. You can also extend a tourist visa near the expiration
date for another 30 days for about $15.00 USD. Usually, to extend a visa,
you can use a local visa service. However the police will give you an extension
on your 30 day tourist visa and you do not need a visa service for that.
Most local visa services speak English. You can get a business visa for
three or six months with either zero or multiple entries. A six-month multiple-entry
visa costs about $150.00 USD and a three-month zero entry is far less.
The service usually returns your passport in five business days. Meanwhile,
the visa service will issue you a receipt. Banks and embassies have accepted
this in lieu of a passport, but carry a copy of your passport and current
visa with you. It is very important to keep your visa current as you may
be subjected to fines, hold-ups at immigration when entering or leaving
China, or deportation. Another visa option is the Z visa. This allows you
to work in the country for a year. You are required to get a resident card
which requires a health exam and blood test. Most employers pay for the
Z visa and they will give you a letter of invitation required for the visa.
Housing
Most employers
pay for housing, but if you come on your own, housing in Beijing for expatriates
is expensive. However you can find inexpensive accommodation with a
short-term lease. You can find a place that needs some work, but meets
all of your needs for as low as $305.00 USD per month. It includes Western-style
furnishings, telephone and no security deposit. Some have broadband Internet
hook-ups. Upper-end housing costs $2,000.00 to $20,000.00 USD per month.
Most of these homes come with furniture, electronics, and home appliances.
It is probably better to put your furniture in storage. Shipping your furniture
from your home country can be very expensive. Many local real estate companies
are Chinese-owned and they have at least one person who speaks English.
There are no standards for leasing, so make sure you have it written into
your lease that you will have working air-conditioning and heat.
Some places
will not turn on the heat until late in the winter. Some real estate
agents will try to get you to pay for an entire year when you move in!
Since they offer no discount off of your rent, you should avoid doing this.
Get them to agree to let you pay one month at time. If they do not agree,
find another place to live. Remember, there are many empty apartments in
Beijing and it is difficult for landlords and agents to fill these places
up. Usually you can negotiate your rent. Real estate in Beijing is a buyer's
market.
Employment
Potential
Beijing
has many foreign firms and major corporations such as IBM, Nokia, Motorola,
and others.
What most people do not know is that many offices and operations here in
Beijing are only representative offices, with the some exception. These
are small offices that only employ a small number of employees, mostly
Chinese. The issue of communication is critical here. Communication barriers
in China will destroy any potential you may have for success if you're
not careful. I've seen communication failures ruin business deals while
making major corporations look bad. Communication can be a problem if you
are trying to negotiate a contract with the Chinese.
Any holes
in your contract, or ambiguous language can be left to the interpretation
of your employer. This can mean that you can be expected to perform
extra duties or work additional hours not within your job description.
Do research on the Internet about contracts, as it can make or break your
China experience! If possible avoid using a Chinese law firm for contractual
issues. I have two law degrees and have seen many Chinese law firms and
I am not impressed.
Job Search
To test
the market, I created experimental resumes here in Beijing to examine the
employment market. I created resumes for lawyers, doctors, advanced
high tech, engineers, consultants, and infrastructure development experts.
All of my
experimental resume candidates are Beijing residents, had China experience,
spoke Chinese and English, and had a valid employment visa. I used various
experience levels, from mid-career to senior levels. Next, I had them reviewed
and approved by respected experts in all applicable fields and by three
resume writing services. I posted these resumes on Monster.com and local
employment boards. I also sent these experimental resumes directly to over
one hundred Chinese companies, foreign-owned companies and joint ventures.
The results
of this experiment were not promising. Not one of my resumes received a
call for an interview. Therefore, I believe that finding employment
in Beijing is difficult, if not impossible to find from inside Beijing.
It is easier to join a company from your home country and then be sent
to Beijing. In fact, that is what many expatriates in Beijing do.
Many people
who come here on their own do freelance work, consult, entertain or teach.
Although the hours and the pay is not consistent like regular permanent
jobs, many people, both college-educated and not, enjoy the freedom to
explore China on their own and earn a good living.
Sabotage
And Espionage
In Chinese
society, it is a civic duty to help with national progress. This can
mean relative progress, or slowing the progress of other countries. That
is why espionage and sabotage are common here, especially in foreign government
operations. I have called an embassy on my cell phone in view of the reception
desk and watched the Chinese operator ignore the call! At another embassy,
I met with diplomats about another business I run to discuss promoting
their culture abroad. Their Chinese secretary kept injecting China into
this
meeting. I politely told her that the meeting did not involve China. When
these diplomatic officers told her to send me several documents relevant
to my business, she did not comply. I never received them.
Where Chinese
employees were in charge of operations of promoting other countries I have
had problems with the cancelling of appointments, refusal to transfer calls,
lost faxes, eavesdropping of telephone calls, and unauthorized opening
of letters. I am not alone. High-level diplomats and C-level executives
I have talked to have had similar experiences when dealing with Chinese
employees in positions of trust. I want to clarify and stand firm with
my own opinion that not all Chinese citizens are spies. I am stating various
incidents that I have personally witnessed or was informed about by credible
persons with no outside motives or other agendas. Some foreign governments
deal with the problem by just lowering their voices when speaking, others
physically throw Chinese personnel caught spying or engaging in sabotage
out of their buildings.
Copycats
China is
notorious for
copyright infringement and stealing ideas and representing
them as their own. This includes trade secrets, intellectual property,
and sensitive materials. Even shows produced by Animal Planet and NBC have
been recorded, had their logo blurred and presented on government-run TV
stations. DVD's, CD's are pirated here daily, costing the owners of those
service marks, logos, trade marks, and other branding tools billions of
US dollars annually. North Face, Rolex and several other top-end labels
are reproduced and placed on substandard products.
Some tips
on avoiding espionage problems
Business
persons should be careful by avoiding talking about sensitive business
matters at restaurants, on cell phones and hotel phones. Use encrypted
faxes, e-mail on secure servers and shredders. Watch what you say around
Chinese janitors; many have been known to carry recording devices. Avoid
serviced apartments, homes or offices. Do not use a Chinese driver
if offered a company car and driver for your place of employment. They
often sell information on your schedule and daily whereabouts. Check your
telephones, wall outlets, house plants, and some of the more obvious possible
places for electronic listening devices after you assume control of an
apartment, home or office. Do not tell anyone except people you trust where
you are going and keep your personal movements confidential. Vary departure
and arrival times, and change your routes at random. Do not tell people
where you are from. Do not show or release your passport to anyone such
as security guards, and hold onto it at banks, Western Union or other transaction
locations. Place your ID card or passport against the bullet-proof glass
so the clerks can read it. Offer them a copy of your passport and recover
that when you are done with your business. Do not surrender it. If police
demand your passport, do not give it to them. They may be fake police.
That's a new scam here. Demand they bring foreign affairs police, immigration,
and customs officers. That way you won't be paying any fines for "visa
errors" or other creative problems. Recently we had 12 security
guards appear at our door demanding our papers. Needless to say, they got
nothing.
The Bottom
Line
In light
of these problems, why come to China? One reason is that there are several
growing markets, like health care, that are needed but underdeveloped.
Another reason is the huge labor pool. Properly trained and monitored,
Chinese employees can be a inexpensive and inexhaustible labor force. But,
you had better know what you are doing. This takes careful research. Talk
to companies that are already here. Talk to people who live here. You can
open a representative office to get your feet wet before fully entering
the market. Use foreign-owned services, like law firms, accounting, and
real estate. This helps avoid miscommunication problems. Above all, learn
about the Chinese. Study the government, the law, the people, culture and
language and especially the way they are educated. Knowing what you are
getting into will prevent the shock of doing business, working or studying
in China.
Glenn Frost
is
an American expat who is well educated and well traveled. He and his wife
own and operate http://www.SeoulSearching.com
and http://www.VirtualNiche.net
where they do live Web casts about the expat lifestyle from their home
in Beijing, China. Glenn Frost is an international private investigator,
bodyguard, and entrepreneur with clients to include celebrities, dignitaries,
diplomats, executives, governments, and royal family members. His direct
e-mail address is GlennFrost@Yahoo.com