FosteringC BusinessHINA and Cultural HarmonyINSIGHT between China and the U.S. VOL. 10 NO. 3 www.chinainsight.info MARCH 2011 Chinese Heritage Foundation Embrace China Friends celebrates Chinese New Year clock, and sat in rapt attention as Stephen Mao described the hungry beast that was let out of its jail on every New Year’s Eve to devour everyone in sight. Thus was born the Celebrations custom of congratulating everyone, ‘gong xi, gong xi’, on New Year’s Day: for hav- ing survived the beast! With their fists thus cupped in the traditional Chinese manner, the children then lined up to offer Stephen and Ming Tchou ‘gong xi’. In return they each received a hong bao stuffed with a lucky penny. Now no harm will come their way until the next New Year’s Eve. The Calligraphy Team then headed across town to Midtown Global Market on February 4 to anchor its Chinese New Year celebration. Many young families, often First Graders at Normandale French Immersion School wishing everyone ‘gong xi, gong xi’ with grandparents in tow, came to have their olunteers of the Calligraphy presented four talks on Chinese New Year names translated or their fortunes told. How Team of Chinese Heritage traditions and myths to over 200 first graders should the fortuneteller answer an earnest Book Review Foundation Friends were busy in Edina schools, including the Normandale golden-haired little boy’s query on whom this year, answering calls for French Immersion School. he would marry? Or what to say when V his parents drew a josh stick that painted their expertise from around the metropoli- These vivacious kids clamored to name tan area. Over two days in February they the 12 animals that made up the Chinese doom? The answers were and will remain New Year continues on Page 7 Minnesota exports continue rebound in the third quarter s the national economy slowly ranked 16th) and Chile (up 142 percent to ment (up US$150 million to US$575 mil- recovers, Minnesota’s manufac- US$30 million, ranked 23rd) contributed the lion) contributed the most to state export Atured exports continue to grow most to this growth. growth during this period. Countries such strongly, for the third consecutive quarter as China, Taiwan and Germany led export Most Markets Among Top 10 Show this year. State exports totaled US$4.4 bil- Strong Growth Trends gains for machinery products while Can- lion in the third quarter of 2010, showing an ada’s increased demand for transportation increase of 17 percent (or US$649 million) equipment (up US$102 million to US$346 over the third quarter of 2009. U.S. exports million) contributed much of that industry’s grew 19 percent. export growth. • Canada, China, Thailand and Japan were among the many countries that boosted the state’s exports of computer and electron- ics products. • Despite the overall decline in exports of miscellaneous (including medical) prod- ucts (down 13 percent to US$410 million), due primarily to the decline in shipments to Ireland, other markets such as Germany (up 30 percent to US$26 million), China (up 19 In contrast to the somber trends of 2009, percent to US$38 million) and Belgium (up • Canada (up US$262 million) and China Minnesota exports have gained 18 percent 10 percent to US$50 million) performed (up US$134 million) displayed the largest over the year-to-date (first nine months of strongly. export gains. Thailand, Germany, Mexico, 2010, compared to the same period of 2009), Taiwan, Japan and Brazil were other coun- while U.S. exports have grown 21 percent. A Wide Diversity of Products Support tries among the state’s Top 20 markets that Export Growth Strong Regional Performances in Asia increased exports by more than US$30 mil- • China performed strongly across mul- and the Americas lion during this period. tiple leading growth areas of machinery • North America (US$1.5 billion) and •Exports to Ireland dropped by about products, which included office machine ALSO IN THIS ISSUE Asia (US$1.4 billion) each accounted for half to US$97 million, dropping the country parts (up 39 percent to US$143 million, Commentary....................2 & 3 one-third of Minnesota manufactured ex- to the state’s 14th-largest market, based on other leading market: Thailand), liquid- and Events........................4, 5 & 15 ports in the third quarter of 2010. These persistent struggling exports of miscella- sand-dispersing machinery (up 33 percent Finance...................................6 neous (mainly medical) goods. regions were leading sources of export to US$93 million, other leading market: Chinese New year............7 - 9 growth, each increasing 25 percent since Belgium), liquid pumping machinery (up Economy......................11 & 11 Most Manufacturing Industries Experi- 92 percent to US$38 million) and machin- the third quarter of 2009. ence Strong Export Growth Business......................12 & 13 • State exports to Central and South ery for producing semiconductors (up 123 • Machinery (up US$183 million to A Passage to China.............16 America jumped 45 percent to US$223 mil- percent to US$33 million, other leading US$768 million) and transportation equip- lion. Brazil (up 56 percent to US$91 million, Quarterly continues on Page 11 PAGE 2 > MARCH 2011 commentary www.chinainsight.info Applying for China visas. It’s a CHINA INSIGHT Publisher: Gregory J. Hugh compliance issue [email protected] Op-Ed Commentary by Chris Devonshire-Ellis Feb. 10 – The issue over obtaining China in an office or factory in China you must --Copies of the health certificate issued Editor: visas is a perennial question, and China apply for this status. If you do not have a by the Entry-Exit Inspection and Quarantine Jennifer Nordin itself is not always consistent in regard to residency permit and you are caught you Authority* [email protected] the application guidelines for foreigners may face deportation, the most serious of- --Copies of the Industrial and Commer- wishing to travel to the country on business. fense justifying this being the evasion of cial Business License (duplicate)/Registra- Manager of Operations/ In particular, for businessmen, there is often personal income tax. tion or any other governmental instrument Circulation: confusion over which of the two pertinent It should be noted that spousal visas and of ratification Richard He --Reasons for employment visa types should be applied for. student visas do not make the holder eligible [email protected] Here we’ll look at the most common for employment in China. Additionally, if a --Credentials required for job visa types and their usage. In particular, work visa holder changes company, the visa --Curriculum vitae of foreigner to be we will go into detail about work visas and must also be reapplied for in the name of the employed Marketing Director: the related process of obtaining a residency new employer. China’s provinces also from --Letter of intention for employment Will Ahern permit. time to time release guidelines applied on --Criminal record check** [email protected] top of these basic key points. These include * This can vary from city to city and Tourist visa satisfying professional qualifications and even nationality to nationality; some na- Production Editor: These should only be used for the stated experience and not possessing a criminal tionalities do not need this certificate prior Dawn Murphy purpose – tourism. Usually an itinerary will record. Visa issuance during certain occa- to obtaining their entry visa. [email protected] need to be provided, occasionally proof of sions or periods of unrest in China can also **This is a relatively new requirement hotel bookings and even guided tour opera- that is not yet implemented in every city in be curtailed. Artist/Intern: tors in China. The correct issuance of work visas is a China. We suspect that in the near future, it Lauren Hugh It is unwise for businesspeople visiting bureaucratic, yet variable matter nationally. will become a standard requirement. China to be on tourist visas – if engaging in However, in order to first assess whether business activities you breach the terms of your country has a double tax treaty with Notification for Application of Staff Writers: the visa issuance. Sharp-eyed officials can Employment Visa and Residence Greg Hugh China or not, please see our firm’s (com- Permit deport you for breach of terms of stay. [email protected] plimentary) guide to this subject. Following The Entry-Exit Administration of the the determination of the length of stay thus Public Security Bureau in the city where Business visa permitted, regional variations over visa issu- Albert Leung An invitation from a registered company a foreigner wishes to work and reside ance need to be taken into consideration. must issue this notification before an Alien [email protected] or business in China is required (occasional- Applying for (normally one year) em- ly our firm provides this to clients) together Employment Permit will be issued. The ployment and residence documentation in following documentation must be submitted Jennifer Nordin with an itinerary. It permits businessmen to China can be roughly broken down into hold meetings, travel to factories and so on. by the employer: [email protected] four steps: --Employment license It does not allow work – i.e. paid work – (i) Alien Employment License applica- while in China. These are usually restricted --Valid passport of the applicant (cop- Mike Xiong tion ies of main pages and valid visa shall be to double entries of 30 days each stay at the (ii) Employment Visa and Residence [email protected] present time. attached) Permit Notification application --Application for Residence Qualifica- Work visa (iii) Alien Employment Permit applica- tions of Working Foreigners in China (with tion About CHINA INSIGHT Work visas are required, fairly obvious- photos) CHINA INSIGHT is a monthly English (iv) Residence Permit application --Two copies of the Industrial and Com- ly, if one intends to work in China.