We are now updating our Key Practice Areas page.

I. We Help Companies Enter China
Your Formal Invitation Letter and Arranging Your Visit to China
Guiding You Through China's Business Culture
Market Research and Competitiveness Intelligence for Entry
Business Strategy for China's Domestic Market, for Export, or for Outsourcing
Your Business Structure in China
Your Government Strategy for Entry
The Full Range of Logistical and Operational Issues
Due Diligence for Entry
Saving Time and Money on Entry - Our China Representation Packages


II. We Help Investors Find Good Investments in China
We Find Investments
Market Research and Competitiveness Intelligence for Investment
Relevant Government Policy and Relationships
Due Diligence for Investors
Strategic and Management Consulting
Your Visits to China
Saving Time and Money - Our China Representation Packages


III. We Help Companies in China Solve Their Problems
Market Research and Competitiveness Intelligence for Problem Solving
Your Problems with Government
Problems with Your Business Strategy for China's Domestic Market, for Export, or for Outsourcing in China
Sorting Out a Full Range of Logistical and Operational Problems
Due Diligence for Problem Solving
Saving Time and Money - Our China Representation Packages


IV. Saving Time and Money: Our China Representation Packages



We can issue official invitation letters for your executives to travel to China; assist you with your visa; and arrange your transportation, hotels and all the other logistical support you will need from the time you arrive here until you leave. We can organize a full schedule of meetings and briefings tailored to your needs, interpreting and translation services as required, and provide a staff member to accompany you.
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One of the most common mistakes executives still make is to assume that when they get off the plane in China and arrive in their 21st century 5 star hotel, that business is conducted the same way as it is back in New York or Chicago, or London or Munich. China is certainly changing, top Chinese executives are increasingly experienced in the ways of the West, and there are more and more similarities. But Chinese culture and the way business operates here are still fundamentally different. They remain a trap for the unwary and the unprepared. We help you understand the difference and avoid the pitfalls.
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We conduct your market research and competitiveness intelligence, tailored to your specific needs. Not trusting the depth or quality of most research available in the market, we do not outsource ours. In China's fluid, rapidly developing economy, understanding the sector in which any business operates or plans to operate - industry conditions and trends, company and regional demographics, domestic and foreign players, policy developments, benchmarking, and likely drivers 2 or 3 years ahead, all tested through industry sampling and our various networks - is a fundamental pre-condition to any successful entry into China.

The intense competition that is already a defining characteristic of China's domestic market also means that you have to take full account of your present and future competition. Our ability to identify and assess your competitors in the market whether domestic or foreign, next-generation technologies, relevant shifts in government policy, and factors such as the phasing of China's WTO commitments in your sector are just a few of the areas with which we can help you.

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We help you map out your China strategy whether you will be focusing on China's domestic market, concentrating on an export strategy taking advantage of China's lower labor costs, or considering outsourcing from China. Working alongside your internal planning team, we can also assist you in developing your timelines and budgeting for costs for your China strategy. We frequently also help our clients find reliable companies for outsourcing, setting up quality control arrangements, periodic inspections of factory labor practices and so forth.
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We advise you on the best business structure, whether a Representative Office, wholly-owned Chinese company (WOFIE) with or without trading rights, or a joint venture. We can tell you about the pros and cons of each, the capital requirements, tax considerations and other aspects of your market entry, and we can help you set them up.
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We help you understand the role and pervasive influence of government and government officials in China, and what this means to your plans and day-to-day activities there.

China's environment is truly different and full of traps for the unwary. It is evolutionary, and fluid. Many basic policies such as China's tax system and its antitrust system are still under development.

The government, while policymaker, still also controls the majority of businesses, directly or indirectly. We all read about Lenovo and IBM but do you know that 62% of Lenovo is owned by the Chinese Academy of Science? China's largest auto manufacturer, SAIC, the joint venture partner of General Motors, is controlled by the municipal government of Shanghai. Would you view General Motors or the City of Detroit the way you do now if General Motors were owned by the City of Detroit? Government and other officials frequently have business interests such as these, alongside other legitimate private interests. The relationships between government and business are much more complex and intertwined than those in the United States or Europe, and you have to take it into account.

On the other hand, China's commitment to the development of its market system as the driver of prosperity for the Chinese people is for most intents and purposes unqualified. Every year, we find more and more similarities in the way business is conducted in China and elsewhere. For those overwhelmed by issues on the risk side of the ledger, we can also help you understand better the more positive side.

But we still see Western companies stumble here in China every week because they do not fully understand the different role of government, or are not well prepared for it. A government strategy is an essential element in any successful company's strategic plans for China. We help you understand it, we assist you in mapping it out, and we can play an active role in helping you implement it. We are particularly skilled in this area which for all these reasons is quite different from the usual scope of government relations in the United States or Europe.

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• Estimating Your Staffing Costs for Planning, From Entry Level to CEO
• Assisting You With Your Other Budgeting, and Timelines
• Recruiting and Employing Your Staff
• Advising You on China's Statutory and Optional Benefits Arrangements
• Assistance With Expatriate Arrangements, Finding Housing, Work Visas
• Finding the Right Location for Your Offices and Manufacturing
• Guiding You Through the Maze of Industrial Zones and Benefits
• Finding Business Partners, Agents and Distributors, and Customers
• Advising and Assisting with Negotiations
• Sourcing Raw Materials and Other Inputs
• Guiding You Through China's Foreign Exchange Rules, Procedures and the Processing of Applications
• China's Tax Regime
• Customs Procedures
• Export Licenses
• Industrial Standards
• Technology Transfer and Registration
• China's WTO Commitments
• Distribution and Supply Chain
• Branding
• Designing your Intellectual Property Rights (IPR) Strategy
• Environmental Regulations
• Translation and Interpreters

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We can cite endless horror stories of businessmen and women who failed to properly invest in due diligence before they did business in China: inexperienced or unscrupulous agents, partners, managers, other employees, and suppliers; fictitious credentials, bogus representations of all kinds, delayed or missed shipments, fraudulent books, overstated accounts receivable, absence of government required licenses, permits and approvals, undisclosed conflicts and the siphoning off of profits, suspect ISO certifications and poor quality work. We see so much of it that we sometimes wonder if people have left their good judgment at home, and wonder, why do so many have to lose $100,000 (or $1,000,000 for that matter) first before they invest in some due diligence?

Whether you want to export into the market, set up your own company or have a joint venture in China, or if you are just purchasing or outsourcing your production, we can do the due diligence that makes the difference on your potential business partners, agents, potential employees, customers and suppliers.

We help you achieve the following goals:

• Comfort as to the true condition of a particular business, or the background and reputation of key individuals
• A better sense of the risk involved
• A more reliable basis on which to evaluate a potential transaction
• Assurance and independent validation as to the assertions made by third parties


Our services are carefully tailored to your specific needs, drawing from the attached menu of resources:

• Corporate and Legal Review
• Business Review
• Management and Personnel Review
• Financial Review
• Assets and Property Review
• Debt and Litigation Review
• Marketing and Competition Research
• Customer and Client Interviews

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While you are doing your planning, even before you decide which company structure best fits your needs or before its registration has been formally approved, our China Representation Packages provide a fast, cost effective and professional option way to get members of your team on the ground in China. We can provide a package of support services tailored to your specific needs, hire or recruit dedicated staff on a temporary or more permanent basis, supply business cards in your name and company name with our address, and provide a whole range of other support services as if we were your office in China. We can do it in a week. See China Representation Packages
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Through the networks we have built up in China over 20 years, we frequently hear about new investment opportunities for foreign investors. These range from start-up or later stage investments to state owned enterprises. While in many cases Chinese businessmen and entrepreneurs, government agencies, and other sources bring these to our attention, in others we take a proactive role on behalf of a client, identifying opportunities of a certain kind, or in a certain sector.
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Our in-house research team provides the highest standard of market research and competitiveness assessment, tailored to your specific needs. Not trusting the depth or quality of most research available in the market, we do not outsource ours. In China's fluid, rapidly developing economy, understanding the sector in which any business operates - industry conditions and trends, company demographics, domestic and foreign players, policy developments, benchmarking, and likely drivers 2 or 3 years ahead - is a fundamental pre-condition to any successful investment in China. The intense competition that is already a defining characteristic of China's domestic market also means that today's winners can quickly become tomorrow's losers. Our ability also to assess actual or likely competitors whether domestic or foreign, next-generation technologies, likely shifts in government policy, and the implications of China's WTO commitments among others, as well as an evaluation of the management team and standards of corporate governance, give you important additional tools with which to assess your investment.

Given the rapidly changing environment, we can monitor and report on developments on an ongoing basis, suited to your requirements.

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Drawing upon our many years of experience with the Chinese government, we can analyze and dig deeper into the government policies that will affect your investment, and predict their future direction and likely impacts.

We help you understand the role and pervasive influence of government and government officials in China, and the evolutionary, fluid nature of its rapidly developing economy. We know well the ways in which policy is developed through inter-agency, legislative, and NGO structures, and how it is then implemented through regulation and administrative procedures at the national, provincial and local levels. This enables us to give you the most informed and thorough analysis of their effects on particular investment decisions, and the ways in which they can be influenced.

The timing and likely direction of current plans to overhaul China's tax system, the final form and effects of China's new antitrust law now being drafted, efforts to reduce the number and wind-down the benefits of industrial zones, the continuing development of China's legal and financial systems, and improving regulatory structures are only a few examples of government policies that will have very real implications for investors in the period ahead. Many more play out in sectors targeted for priority or strategic development.

Few foreign investors appreciate the more limited scope of company operating authority, the many government approvals and permits required for day-to-day business activities, and special rules and procedures for areas like technology and technology transfer, and the perfection of IPR rights, . Many sectors of the economy remain highly regulated by the government, at various levels. We help investors understand and navigate in these waters.

The recent SAFE Circular 11 adding new registration and approval requirements for domestic participants, generally the sellers, in offshore investment vehicles routinely used in connection with foreign investment in China would be just one recent example of why any investor needs to be prepared for shifting and evolving government policy, and the value we can provide to you in tracking that on an up-to-date basis.

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We can cite endless horror stories of investors who failed to properly invest in due diligence: fictitious books, unrecorded obligations, missing assets, overstated accounts receivable, absence of government required licenses, permits and approvals, real property assets owned by others, undisclosed conflicts and questionable supplier arrangements, nonexistent credentials, suspect ISO certifications, and bogus references would only be a few.

The due diligence services we offer for investors help you achieve the following goals:

• Assurance and independent validation as to the assertions made by third parties
• Comfort as to the true condition of a particular business, or the background and reputation of key individuals
• A better sense of the risk involved
• A more reliable basis on which to evaluate a potential transaction

Our services are carefully tailored to your specific needs, drawing from the attached menu of resources:

• Corporate and Legal Review
• Business Review
• Management and Personnel Review
• Financial Review
• Assets and Property Review
• Debt and Litigation Review
• Marketing and Competition Research
• Customer and Client Interviews
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We offer a full range of strategic and management consulting services going well beyond initial assessment: we can draw upon post-investment consulting and management development services to help you improve the quality of management, strengthen strategic planning, enhance the skill base of companies at all levels, and otherwise ensure that the most up-to-date and effective management systems are put in place, strengthened, and maintained. The retention of key employees is a particularly important area.

For start-up and fast growth companies, as an example, we recently organized a series of highly successful programs in Beijing for Chinese entrepreneurs with our long-time associate Dr. Jana Matthews, bringing the lessons of managing fast growth companies from the United States to China. Dr. Matthews had first come to China in 2004 at the invitation of China's National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) as part of a US-PRC government-to-government initiative to bring the experience of US entrepreneurs and entrepreneurial management to China. We will be repeating these programs in the period ahead, and Dr. Matthews will continue to be available for company specific projects

Our CEO David Diebold, who was formerly Chairman of the International Advisory Council of the American Management Association, the world's largest management development organization, was also recently invited to lecture on Corporate Governance at the prestigious Central Party School of the CPC in Beijing.

Whether your investment is in a start-up fast growth company, a joint venture, or a former state owned enterprise, we have the experience to tell you how well it is managed now, and the ability to help you raise up performance to competitive levels after you invest in it.

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We can issue official invitation letters for your travel to China; assist you with your visas, and arrange your transportation, hotels and all other support you will need from the time you arrive here until you leave. We can organize your full schedule of meetings and briefings tailored to your needs, interpreting and translation services as required, and provide a staff member to accompany you.

We can provide support and advice on your negotiations.
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We can even offer you a package of ongoing support services as if we were your branch office in China, supply business cards in your name and company name with our address, even recruit dedicated staff on a temporary or more permanent basis, and a whole range of other support. See China Representation Packages.
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Thorough research is often the critical first step in resolving a client's particular problem.

Our in-house research team provides the highest standard of market research and competitiveness assessment, and we have the experience and flexibility to tailor it to your needs. Not trusting the depth or quality of most research available in the market, we do not outsource ours.

A fresh look at the sector where you are operating, digging deeper into the challenges you are facing - industry conditions and trends, company demographics, domestic and foreign players, policy developments, competitor benchmarking, and likely drivers 2 or 3 years ahead - almost always brings new insight. The intense competition that is already a defining characteristic of China's domestic market also means that yesterday's strategy is no guide to seizing tomorrow's opportunities. Today's winners can quickly become tomorrow's losers.

Our ability to provide an unbiased, independent evaluation of your strategy, your operations and implementation, actual and likely competitors whether domestic or foreign, your technology and next-generation technologies, government policies affecting your business, the implications for you of China's staged WTO commitments, the experience of your management or operational team, your standards of corporate governance and other factors - in fact anything you do - is an important first step in resolving many problems.

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Given the pervasive role and influence of the Chinese government and government officials in almost every aspect of business activity in China, businesses in China frequently turn to us for assistance in this area.

Gary Teng, who heads our practice in this area, is a former Chinese government official who worked for 7 years at China's Ministry of Commerce (MOFTEC now MOFCOM). We were particularly proud last year when the American Chamber of Commerce People's Republic of China retained us under Gary's lead as its advisors on its relationships with the Chinese government, on behalf of the American business community in China.

We are particularly skilled in understanding the internal processes of government and the complex dynamic by which policy is formulated. The government machinery can be tortuously complex to the inexperienced, relationships can be obscure, and the gaps between national policy and local interpretation and implementation large. Gary and his team can navigate through these waters with great skill and as a result can come up with a detailed plan to map out and resolve your problems.

Companies frequently turn to us for advice on the likely course of a government policy that affects their interests, advice on how best to engage that process, assistance in interpreting a law or regulation that affects their business, advice on a delay or issue encountered in an application before a government department or regulatory body, assistance in resolving a conflict between national government policy and its implementation at the provincial level, advice on the appropriate approach to the government on a particular issue, or to assist with a license application.

The timing and likely direction of current plans to overhaul China's tax system, the final form and effects of China's new antitrust law now being drafted, efforts to reduce the number and wind-down the benefits of industrial zones, the continuing development of China's legal and financial systems, and the improving but still imperfect regulatory structures are only a few examples of government policies that will continue to affect businesses operating here in the period ahead.

Few outsiders appreciate the limited scope of company operating authority, the many government approvals and permits required for business activities, and special rules and procedures in areas like technology and technology transfer.

Success in one region of China is not necessarily the best roadmap for another. We can help you navigate through provincial and local governments across China.

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We can provide an independent assessment of your China strategy whether you are having a problem operating in China's domestic market, focusing on an export strategy taking advantage of China's lower labor costs, or outsourcing from China.

Working alongside our clients' internal strategic planning teams, at the corporate and organizational levels, we can advise you on the formulation and evaluation of your strategic planning for China, help you with new phases of that, or otherwise assist you in solving your problems.

We offer a full range of management consulting services to help you assess and improve the quality of your management, strengthen your strategic planning, enhance the skill base of your company at all levels, and otherwise ensure that the most up-to-date and effective management systems are put in place, strengthened, and maintained. The retention of key employees is a particularly important area.

For start-up and fast growth companies, as an example, we recently organized a series of highly successful programs in Beijing for Chinese entrepreneurs with our long-time associate Dr. Jana Matthews, bringing the lessons of managing fast growth companies from the United States to China. Dr. Matthews had first come to China in 2004 at the invitation of China's National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) as part of a US-PRC government-to-government initiative to bring the experience of US entrepreneurs and entrepreneurial management to China. We will be repeating these programs in the period ahead, and Dr. Matthews will continue to be available for company specific projects

Our CEO David Diebold, who was formerly Chairman of the International Advisory Council of the American Management Association, the world's largest management development organization, was also recently invited to lecture on Corporate Governance at the prestigious Central Party School of the CPC in Beijing.

Whether you are a start-up fast growth company, a joint venture, or a former state owned enterprise, we have the experience to help you solve your management and strategic problems, and raise up the performance of your company to competitive levels.

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• Recruiting and Employing Additional Staff
• Advising You on Expatriate Arrangements, Finding Housing, Work Visas
• Finding the Right Location for New Offices, and New Manufacturing Sites
• Guiding You Through the Maze of Industrial Zones and Benefits
• Finding New Business Partners, Agents and Distributors, and Customers
• Advising and Assisting with Negotiations
• Sourcing Raw Materials and Other Inputs
• Guiding You Through China's Foreign Exchange Rules, Procedures and the Processing of Applications
• Strategic Advice on Tax and Legal Issues
• Customs Procedures
• Export Licenses
• Industrial Standards
• Technology Transfer and Registration
• China's WTO Commitments
• Distribution and Supply Chain
• Branding
• Improving Your Intellectual Property Rights (IPR) Strategy and Dealing with IPR problems
• Environmental Regulations

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We can cite endless horror stories of businessmen and women already operating in China who failed to properly invest in due diligence: inexperienced or unscrupulous agents, partners, managers, other employees, and suppliers; fictitious credentials, bogus representations of all kinds, delayed or missed shipments, fraudulent books, overstated accounts receivable, absence of government required licenses, permits and approvals, undisclosed conflicts and the siphoning off of profits, suspect ISO certifications and poor quality work: these are problem areas for any company.

Whether you are expanding your activities in the market, moving into a new region of the company, setting up additional joint ventures, doing business with new suppliers, or hiring new executives, we can do the due diligence that makes the difference.

We help you achieve the following goals:

• Comfort as to the true condition of a particular business, or the background and reputation of key individuals
• A better sense of the risk involved
• A more reliable basis on which to evaluate a potential transaction
• Assurance and independent validation as to the assertions made by third parties

Our services are carefully tailored to your specific needs, drawing from the attached menu of resources:

• Corporate and Legal Review
• Business Review
• Management and Personnel Review
• Financial Review
• Assets and Property Review
• Debt and Litigation Review
• Marketing and Competition Research
• Customer and Client Interviews

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If you need to bring in executives and other experts from your home office or factories outside of China to work alongside your China team, while you address a particular problem, we can offer you a package of support services for them as if we were a special branch office in China, supply business cards in your name and company name with our address, even recruit dedicated staff on a temporary or more permanent basis, and a whole range of other support. These services are also useful when you send in special teams for major projects or other similar one-time purposes, where there are financial or operational reasons for keeping them separate. See China Representation Packages

For more information on how we can help you in these areas, please contact Anne Zheng, Vice President for Client Services, by email at anne.zheng@dieboldassoc.cn or by phone at +86 10 6597 0886 then 303 when you hear the recording.
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Whether you are entering the market for the first time, investing in China, expanding your operations, or solving a problem or undertaking a major project where you need to move a team into China for a period of time, our Representation Packages save you time and money.

• They enable businesses to fast-track their entry into China before they set up their own Representative Offices, wholly-owned companies (WOFIES) or joint ventures
• They provide investors with a base in China while they search out and negotiate their investments, and monitor them afterwards
• They offer a cost-effective tool for businesses in China facing particular problems, or dealing with major projects

In effect, we become your office in China. We set up your company's signage at our reception; provide office and meeting facilities; a full-range of management, secretarial and other logistical support services; and otherwise act as if we were your office in China. We can also recruit, employ, and manage full-time or part-time dedicated staff for you, at all levels, both expatriates and Chinese nationals, with the full-range of statutory and optional benefits as required by law. You and your staff have business cards in your company's name with our address, and your own stationery, so that you and they can hold yourselves out as if our office were your own.

We can also provide the broadest range of business, management, and other support tailored to your particular requirements:

• We set up reporting by your PRC Manager as you instruct
• We monitor his or her performance for you
• We can guide you through China's distinct business culture, including providing translation services and interpreters as you or they need them
• We can provide you or your dedicated staff with strategic advice and other consulting support as you require
• Market data and research, updated as needed
• Help identify business partners, potential customers, and suppliers
• Assist you or them with due diligence
• Provide regular liaison with your business links in China.
• Assistance in negotiations
• Troubleshooting on commercial disputes
• Official invitation letters in connection with your visits, and other assistance in regard to your visa applications
• Travel arrangements
• An assigned liaison representative on our staff

The advantages to you:

• Transparent
• Your costs are fixed - no surprises
• Much less expensive than maintaining your own office
• Tailored to your specific needs
• Professional controls and monitoring
• Risk minimized
• Fast - you can start operating right away
• Your own presence in China, overseen and supported by our professional staff
• Quick transition to your own office, when you reach that point


For more information on our China Representation Packages, please contact Anna Li, Vice President for Representation Services by email at anna.li@dieboldassoc.cn or by phone at +86 10 6597 0886 then 304 when you hear the recording.
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