DOCUMENT BEM! ED 194 422 SO 012 946 .TITLE Doing Busiiess with China. INSTITUTION Department of Commerce, Washington, D.C. Industry and Trade Administration. PUB DATE Feb 79 NOTE 48p.: Pages 4-5 and the Appendices may not reproduce clearly from EDRS in paper copy or microfiche due to small print and fading ink throughout original document. AVAILABLE FROM Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402 (Stock Number 003-009-00316-4, $1.801. EDES PRICE MFOI /PCO2 Plus Postage. DESCEIPTOPS *Business: Exports: Foreign Countries: *Marketing: Merchandise Information: Merchants: Travel IDENTIFIERS *China: International Trade ABSTRACT This publication provides background and practical information for those interested in doing business with China. The United States officially recognized the People's Republic of China (PRC1 on 1, 1979. Chinese leaders view international trade as an important factor in transforming China into a modern industrial state as well as an instrument to foster the overall political and economic goals of making China a strong unified nation capable of exercising leadership in Asia and the world. China now has trading relations with more than 150 countries. Prior to approaching the Chinese foreign trade corporations (FTCs), many firms .may want to assess the potential PRC market for their goods and services* Various groups in the United States attempt to survey Chinese_industries and to assess the potential for American goods and services. Some of these may be found as sectoral reports in the "China Business Review" published by the National Council for United States -China Trade. The Commerce Department also has an ongoing effort to develop further market information. The publication lists Chinese FTCs describing the commodities handled by each. Specific steps for establishing contact with FTCs are discussed. The document then goes on to describe other trade related entities of the People's ,Republic of China. in China, end-users play a major role in deciding what commodities are to be procured. One excellent way to contact end-users in an attempt to influence their decisions is by exhibiting equipment where engineers and other representatives of consuming entities have an opportunity to observe and ask questions. Various Chinese fairs are described. Other topics discussed in the publication include currency, shipping and insurance, United States regulations governing trade with the PRC, trademarks, inventions and copyrights, and travel to China. United States domestic exports and imports are listed in the appendices. (Author/RM) *********************************************************************** * Reproductions supplied by EDRS are the best that can be made * * from the original document. * *********************************************************************** . U.S. DEPARTMENT OF HEALTH. EDUCATION A wei.FARE NATioNAI. INSTITUTE OF CV EDUCATION CV THIS DOCUMENT HAS BEEN REPRO- DUCED ExACTLy AS RECEIVED FROM 44. THE PERSON OR ORGANIZATION ORIGIN amp IT POINTS OP VIEW OR OPINIONS ....1. STATE() DO NOT NECESSARII.Y REPRE. SENYOFFiCial.NATioNal. INSTiTuTEDF EDUCATION POSITION OR POIJCv r-4 CZ:b Li.J DOING BUSINESS WITII. 1 I U.S. DEPARTMENT OF COMMERCE Industry and Trade Administration February 1979 OCT 141980 2 Contents Page Introduction 1 U.S. Policy PRC Foreign Trade Policy Approaching the Market 2 Researching the Market Foreign :Trade Corporations Establishing Contact The U.S. and Chinese Embassies The National Council for U.S.-China Trade Other PRC Trade- Related Entities The Guangzhou Trade Fair Other Fairs and Exhibitions Contract Negotiations 13 Arbitration 14 Currency 14 Payments 15 Shipping and Insurance 15 U.S. Regulations Governing Trade with the PRC , 16 Imports Exports Financial Restrictions and Assistance PRC Tariffs 17 Trademarks, Inventions, and Copyrights 18 Going to the PRC 19 Travel Visas Health Currency Regulations Personal and Prohibited Items Visiting in the PRC 20 Travel Facilities Accommodations Restaurants Sight- seeing and Entertainment Social Customs Photography Dress Climate Language Time Public Holidays Hours of Business Weights and Measures Electricity Communication Facilities Mail Service Emergency Contact of Visitors Exit Procedures Bibliography 23 Books Periodicals Appendix 1U.S. Domestic Exports to China: JanuaryNovember 1978 26 Appendix 2U.S. General Imports from China: JanuaryNovember 1978 33 Appendix 3Commodities for Export and Import 41 Appendix 4Beijing Addresses and Telephone Numbers 42 Market Profile 44 iii 3 18! S. 5.'1. Peolam2.1 Mongolia a 1611140It aira 0 b491,u. wo.hae. India China International boundary . International boundary in dispute Railroad eh Road Via in il101 59C0Mte. At nail $00 Koonween i.e Thailand hppujia 511053 1075 ..... v ti. 4 introduction A NOTE ON PINYIN U.S. Policy On January 1, 1979, China adopted officially the "pinyin" system of writing Chinese characters in The United States officially recognized the the Latin alphabet. A system of romanization in- People's Republic of China (PRC) on January vented by the Chinese, pinyin has been widely used 1, 1979. The status of the U.S. Liaison Office for years in China on street signs and commercial in Beijing (Peking) and the PRC Liaison Office establishment signs, as well as in elementary Chi- in Washington is to be raised to that of an nese textbooks as an aid in learning the Chinese characters. Now pinyin is to replace the familiar embassy on March 1, 1979. Wade-Giles romanization system even inChina's This action by the two countries was the English language publications destined for foreign distribution. Therefore, pinyin is used throughout culmination of an effort set in motion 133 Presi- this report, giving the Wade-Giles romanization in dent Nixon's trip to China in February 1972. parentheses after the first occurrence of each pin- The Shanghai Communique issued on February *? expression. Some words frequently used in this 28, 1972, signified a dramatic shift in Sino- report are given below in WadeGiles and pinyin. American affairs, ending the near absence of WADE411.ES PINYIN relations with the Mainland that dated back to before the Korean War. As a result, liaison Peking Beijing Kwangchow/Canton Guangzhou offices were opened in the respective capitals Tung Fang Oong Fang in May 1978, the National Council for U.S.- Erh U Kou Erligou China Trade was formed, and trade between Hsi Chisel Kills° the United States and China began to expand. Kuanghua Guanghua Mao Tse-tung Mao Zedong It is the policy of the U.S. Government to pro- Teng Hsiao-ping Deng Xiaoping mote trade in nonstrategic goods with the PRC. Hua Kuo-fang Hua Guofeng Although trade in 1978 exceeded $1 billion, Chou Enlai ZhouEnlai unresolved trade and commercial issues continue to hamper its growth.* Neither country enjoys A prevailing theme in PRC foreign trade most-favored-nation (MFN) tariff treatment, policy has been economic independence. Until and China does not have access to Export- recently, China has avoided long-term foreign Import Bank loans and guarantees and other credit, preferring to scale imports to the amount financial programs of the U.S. Government, of foreign exchange available from export earn- except for CCC (Commodity Credit Corpora- ings. However, the goal to thoroughly modern- tion)agriculturalcredits.Theunresolved ize China by the year 2000 and the objectives Maims and assets issue inhibits or precludes of the Ten-Year Plan (1976-85) are so ambi- direct banking relationships, direct shipping or tious that China has found it necessary to rely airline connections in flag carriers, and the on some foreign financing. Until recently the exchange of trade exhibitions. It is the policy PRC had attempted to become self-sufficient of the U.S. Government to seek resolution of through development of its own productive these and other barriers to the full development capacity; now it realizes that the industrializa- of trade and commercial relations. tion program can not be successfully completed in the desired time period without a major PRC Foreign Trade Policy infusion of foreign plant, equipment, and tech- nology. Generally, the PRC seeks to avoid Its leaders view international trade as an becoming too dependent on any one country important factor in transforming China into a as a source of trade. modern industrial state, as well as an instru- ment to foster the overall political and economic Development of foreign trade and economic goals of making China a strong unified nation relations with most nations of the world is an capable of exercising leadership in Asia and the important part of China's present policy to world. Import policy is directed at the acquisi- maximize the potential contribution of foreign tion of capital goods that embody the modern trade to economic development. China now has technology needed to develop China's industry. trading relations with more than 150 countries. Trade also is used to overcome serious short- To date China has joined very few international comings and bottlenecks in domestic production. economic or financial organizations, but Bei- jing's interest in arrangements that promote Appendix I lists U.S. domestic exports to Chino for January- November £918. and Appendix 2 lists U.& general imports from trade should increase as the country becomes China for the some period. more involved in international commerce. 5 1 Approaching the Market commodities handled by each, with their street, cable and telex addresses. Researching the Market