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"Guanxi", meaning relationship in English translation and
seemingly similar to but in fact substantially different from term
"lobbying" in the west part of the world, is a commonly used
powerful phrase in China's business arena. No matter what types of business
you are planning to do China, import or export, wholly owned business investment
or joint venture, or even setting up a small service business, you will
end up with finding yourself in a web of relationships, among which government
relations are key elements. This is the reality from which any "doing business
in China" is difficult to escape. Nevertheless, there are many positive
aspects for international businesses in either private sectors or non-profit
organization to develop strong strategic government relations, as
the governments in China can always lend you hands within their capacities
including regulatory, competition, partnership, customer and investment
protection, which often help the foreign investors to get footed in
this enormous yet complicated market.
The Economic Development Zones
that were regulated by central government for preferential tax policies
and have attracted many foreign investments are good examples of Chinese
government entities.
Having been doing business in China and working with the Chinese government
of different levels for decades, Amlink International has gained broad extensive
experiences in developing strong government relations in China, which significantly
strengthened our abilities in understanding of government functionalities,
opening important communication channels, managing regulatory environment,
managing tough operation issues, managing business and finance risks
and building strong industry and market coalitions.
Amlink International Offers working-level government Relations services
in the following categories:
building and utilizing direct government relationships.
managing regulatory environment uncertainties
obtaining government approvals on various applications, such as permits,
product compliances certificate.
analyzing specific issues and managing the risks arising of the issues.
seeking interpretations of government rules, regulations and laws that may
concern foreign investors.
conducting systematic market entry strategy research for specific product.
providing advice and consulting on foreign investment and business setup
in China.
seeking funding from Chinese government for certain national
preferential projects.
utilizing the government sponsored media power to promote ideas, new
products and services.
Building and utilizing direct government relationship
Good relationship or "guanxi" with the government agencies can to certain
extent help a company understand and influence policy and regulation directions.
Such relations can also provide the effective ways of overcoming difficulties
and obstacles. However, it should be noted that the power of guanxi sometimes
has its limit, it is very unwise to rely merely on the relationships
in order to achieve any business objectives. Successful government relationships
require regular and ongoing nurturing; isolated exploitation simply just
does not work. Amlink International has been working continuously with administrative
and working-level officials to solidify the long-term relationships.
Managing regulatory environment uncertainty
China is a developing country, with economic reform taking place on a
continuous basis. Policy changes inevitably create uncertainties in the
regulatory environment. Therefore, it is critical to manage regulatory environment
for anyone who has been doing or plan to do business in China. As the Chinese legal system is
towards being maturely
regularized, especially in the aftermath of WTO entry and recent
international financial crisis, Amlink International can help clients
to identify and understand forthcoming legislation and legislature ramifications
through its broad government relations. More importantly, we can also
provide comprehensive regulatory analysis in a way to help our clients to minimize
their investment
risk and seize the opportunities.
Analyzing issues and managing the potential risks arising of the issues
Controversy and dispute are unavoidable in any business practice.
Legal recourse certainly will make the crises worse and cause negative sentiment
being escalated. Behind-the-scenes mediation with regulators is often the best way to achieve mutually satisfactory and lasting solutions.
Amlink in the past has successfully helped our clients to resolve many
disputes that could be potentially damaging and costly through
constructive mediations.
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