The Chinese New Year (Spring Festival) is coming up (Feb 3rd) and many businesses are thanking their Chinese partners and clients for a year of fruitful collaboration by sending a thoughtful gift. Here are some things to keep in mind.
1. Avoid cultural pitfalls or make your gift even more special by taking other traditions into account. Consider wrapping your gift in red gift wrap. The color is considered lucky by the Chinese and thus would give your gift extra authenticity. Do your research to avoid certain items that are considered unlucky. For instance, do not give knives or scissors as they symbolize breaking a relationship. Also avoid clocks, watches or anything in sets of four (the number is unlucky). Six, eight and nine are a lucky numbers.
2. Whenever giving a gift to a foreign partner, you should always be aware of the Foreign Corrupt Practices Act (FCPA). The FCPA forbids anyone from paying a bribe to a foreign official, no matter how small the monetary value of the bribe is. In China, this is especially problematic. Many Chinese companies are state-owned enterprises. Therefore their directors and officers would be considered foreign officials. In these scenarios, only give gifts to individuals where you are absolutely sure the receiver will see the gift as a gesture of goodwill.
All in all, informed and culturally-sensitive gift-giving is great way to forge stronger relationships with key Chinese contacts and position your business for even greater success in 2011.
Tuesday, January 18, 2011
Friday, January 7, 2011
Health Care Investment in China
In 2009, the Chinese government announced that health care reform would be a major component of its $586 billion stimulus package. It’s a clear sign of a market opening up and investment opportunities abound. Here’s a quick look at the Chinese health care system today, how it’s poised to change and where some of the opportunities might be.
People Change
Average life expectancy in China has increased by nearly three decades since 1949. There’s no question that where people live, how people live and the expectations people have of the nation’s health care infrastructure are rapidly changing. This means increasing demand for medical services aimed at an aging population, including both formal facilities like clinics or hospitals as well as the options for home-based care. As a direct result, China's medical devices market is estimated to almost double in size between 2006 and 2014 to $28 billion a year. For example, according to the China Market Research Group, the number of cardiac patients in China is growing at a 20-30% annual rate, with the market for cardiovascular stents increasing by 40% annually. As many developed nations work their way out of economic slowdown and cut back on expenditures in this area, the Chinese market poses a real opportunity.
The Gaps
As per the Chinese stimulus plan, nearly 90% of China's citizens are now covered by a universal health care system. Health-care facilities throughout the country are being upgraded, including the construction of 30,000 hospitals, clinics, and care centers. Much of the new development is focused on the rural areas of China which have lagged far behind major cities in providing access health care resources. U.S. companies that have the ability to work with smaller localities and offer products or services aimed at growing health care from a grassroots level have the advantage.
Call for Quality
A growing middle class in China means a demand for more than the basic level of service provided by the government. Statistics from the Chinese Ministry of Health show that the personal spending on medical services doubled from 21.2% in 1980 to 45.2% in 2007. What are sophisticated Chinese health care consumers asking for? A recent China Market Research Group survey of doctors, hospital staff and patients found a clear preference for foreign products. The majority of respondents said that they were willing to pay 20% or more for Western brands because they believed them to be more reliable and of higher quality.
All of the above means there is currently a monumental opportunity for U.S.-based companies looking to become players in the Chinese health care arena, especially since now foreign investment is allowed in the field.
People Change
Average life expectancy in China has increased by nearly three decades since 1949. There’s no question that where people live, how people live and the expectations people have of the nation’s health care infrastructure are rapidly changing. This means increasing demand for medical services aimed at an aging population, including both formal facilities like clinics or hospitals as well as the options for home-based care. As a direct result, China's medical devices market is estimated to almost double in size between 2006 and 2014 to $28 billion a year. For example, according to the China Market Research Group, the number of cardiac patients in China is growing at a 20-30% annual rate, with the market for cardiovascular stents increasing by 40% annually. As many developed nations work their way out of economic slowdown and cut back on expenditures in this area, the Chinese market poses a real opportunity.
The Gaps
As per the Chinese stimulus plan, nearly 90% of China's citizens are now covered by a universal health care system. Health-care facilities throughout the country are being upgraded, including the construction of 30,000 hospitals, clinics, and care centers. Much of the new development is focused on the rural areas of China which have lagged far behind major cities in providing access health care resources. U.S. companies that have the ability to work with smaller localities and offer products or services aimed at growing health care from a grassroots level have the advantage.
Call for Quality
A growing middle class in China means a demand for more than the basic level of service provided by the government. Statistics from the Chinese Ministry of Health show that the personal spending on medical services doubled from 21.2% in 1980 to 45.2% in 2007. What are sophisticated Chinese health care consumers asking for? A recent China Market Research Group survey of doctors, hospital staff and patients found a clear preference for foreign products. The majority of respondents said that they were willing to pay 20% or more for Western brands because they believed them to be more reliable and of higher quality.
All of the above means there is currently a monumental opportunity for U.S.-based companies looking to become players in the Chinese health care arena, especially since now foreign investment is allowed in the field.
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