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Business in China: Risks and Opportunities

Related entries: Announcements & Events, Business Issues, Due Diligence, General, Jeremy Gordon, News, Risky Business In China, Strategy

Risk in China needs more attention, and a more strategic response. This was a key message from “Risky Business in China” author (and China Business Services director) Jeremy Gordon, in a recent talk at London’s Chatham House:

“Current sentiment is that business risk is as high as it has ever been” (Risky Business in China).

“Why is there so much negativity? What can businesses do about it? My view is that rapid and fundamental changes to China’s political, economic and social environment have changed the nature of opportunities and risks for international business in China. There are certainly opportunities…But for many established players, it is the risks that grab the attention.

It is not all bad news – nothing in China is ever black and white – but the risks need to be managed. Businesses need to understand and adapt to the new reality of doing business in China – grasp the opportunities, but avoid getting burnt!”

For the full talk see the SlideShare and podcast links below.

The presentation can be seen here, alongside the audio here (and below).

SlideShare Presentation

Business in China: Risks and Opportunities (Chatham House talk) from Jeremy Gordon

Podcast of the full talk

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Webinar: How to Avoid Business Risk in China

Related entries: Announcements & Events, Business Issues, Due Diligence, General, Jeremy Gordon, Risk & Law, Risky Business In China, Strategy

An EU SME Centre Webinar, 28 October, 2014: How to Avoid Business Risk in China: A Guide to Due Diligence for EU SMEs.

Doing business in China involves a series of challenges and risks that international companies need to address carefully in order to achieve success in the market. Some may face bribery, business fraud, anti-trust investigations or procurement bans from government and state-owned enterprises. Thus re-evaluating your China risk exposure, and adjusting your business strategies in order to continue to benefit from the opportunities offered by the China market is crucial. A new book written by Jeremy Gordon, Risky Business in China, demonstrates how a strategic approach to risk management and due diligence can not only reduce business risk in China, but also provide excellent business intelligence to support negotiations and business relationships.

See more details here.

About the Speaker

Jeremy Gordon, Author of “Risky Business in China, a Guide to Due Diligence”.

Jeremy Gordon has worked with government departments, financial institutions and major corporates on strategy, risk and business development in China over the past 20 years. First in Hong Kong as an officer with Britain’s Brigade of Gurkhas, he gained China trade and investment experience with a diversified Hong Kong-based group, and went on to establish the consulting company China Business Services in 2002. His book, “Risky Business in China”, was published by Palgrave Macmillan in 2014.

“At the heart of this book lies the contradiction between the reality that investing and operating in China is a risky business but that China is simply too big to ignore. Any business person would do well to read this excellent brief on the perils of dealing with China’s vast and endlessly fascinating business landscape.”
Tim Clissold, author, Mr. China.

Jeremy Gordon has also been the Honorary Secretary and a Committee Member of the 48 Group Club, and a UK Trade and Investment Business Specialist for mainland China, Taiwan and Hong Kong. He is a Director of China Edge, a consultancy focused on Chinese consumers, and a Trustee of Mothers’ Bridge of Love, a charity that supports disadvantaged Chinese children.

Jeremy Gordon at China Edge

Event: Business in China – Risks and Opportunities

Related entries: Announcements & Events, General, Jeremy Gordon, Risk & Law, Risky Business In China

In light of China’s economic reforms and a high-profile anti-corruption campaign, the speaker (Jeremy Gordon, author of Risky Business in China) will argue that fundamental political, economic and social shifts have changed the nature of opportunities and risks for foreign businesses in China.

Event: Business in China – Risks and Opportunities
Date – 23 October, 2014
Location – Chatham House, London

See more at: http://www.chathamhouse.org/event/business-china-risks-and-opportunities.

Jeremy Gordon is a director of China Business Services and China Edge, and author of “Risky Business in China, a Guide to Due Diligence” (Palgrave, September 2014)

Risky Business in China

China’s Risk Reality

Related entries: Business Issues, Due Diligence, General, Jeremy Gordon, Risk & Law, Risky Business In China, Strategy

Things can change quickly in China, but the need to adapt is no longer just about maximising the market opportunity – it is also increasingly about managing risks. Recent, widely reported cases have covered Anti-Monopoly Law (AML) investigations into companies such as Qualcomm, Microsoft, Audi and Mercedes-Benz, as well as government procurement bans on foreign software, IT and consulting services. Aston Martin, KFC, McDonald’s and others have suffered supply chain failures, whilst companies such as GSK endured corporate scandals. Foreign executives have been detained and jailed, while other companies have fallen victim to more traditional accounting frauds. Caterpillar lost hundreds of millions of dollars in 2013 following its purchase of ERA Mining Machinery.

A wide range of risks clearly need to be taken into account when assessing the China business landscape, but much of the latest news has been focused on the AML investigations that have been launched into the activities of foreign companies. These investigations have prompted much discussion about the country’s (perhaps political) rule of law and “level” playing field. The European Chamber of Commerce in China recently issued a strong statement saying that it has “received numerous alarming anecdotal accounts from a number of sectors that administrative intimidation tactics are being used to impel companies to accept punishments and remedies without full hearings…the European business community is also increasingly considering the question of whether foreign companies are being disproportionately targeted in the investigations”…

(See the full post on LinkedIn)

The article is by Jeremy Gordon, a director of China Business Services and China Edge, and author of “Risky Business in China, a Guide to Due Diligence” (Palgrave, September 2014).

Jeremy will be speaking about business risk in China at Chatham House on 23 October.

This article originally appeared in the October 2014 edition of China-Britain Business Focus, the magazine of the China-Britain Business Council and the British Chamber of Commerce in China, and is part of a China risk series on LinkedIn.

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Your China Risk Factors (Have Changed)

Related entries: Business Issues, Due Diligence, General, Jeremy Gordon, News, Risk & Law, Risky Business In China, Strategy

The ever-reliable China Law Blog recently ran a post entitled “Identifying Your China Risk Factors“. The post starts by saying:

“China is in the midst of what appears to be a concerted government crackdown against foreign companies doing business in China. This has led many of our clients to ask themselves (and our China lawyers): “Are we at risk, and if so, how much risk?” Our quick answer is always “yes. Hard to say.”

Risky Business in China

The same questions have been asked around here more and more often over the past few years, and the focus of conversation has moved away from opportunity and focused on risk. That, and the changing nature of risks faced by international business in China, is one of the things that promted me to write “Risky Business in China. A Guide to Due Diligence“. As I note in the book (and in a recent LinkedIn post):

“Fundamental political, economic and social shifts have changed the nature of the opportunities and risks for foreign businesses in China. The country has emerged as the second largest economy in the world, and as an important driver of global growth with strategic political interests in the region and beyond. Domestically China is undergoing a significant reform programme while managing a massive, urbanising population that has social media as a tool with which to express increasingly vocal aspirations and frustrations. Entrenched local interests and state-owned enterprises are not the easiest targets for the Chinese government to deal with. But well-known foreign companies that are found, under scrutiny, to be flouting the law, abusing dominant market positions, or discriminating against Chinese consumers, may be considered fair game.”

These shifting conditions require companies to shift their thinking, or risk getting lost. China Law Blog concludes that:

“If you are serious about mitigating risk with your China business in the current environment, get serious about compliance…”.

Good advice!

PS Dan Harris was also kind enough to highlight my book – which aims to help people recognise and mitigate the risks:

“My long-time friend Jeremy Gordon will…be coming out with a book, entitled, Risky Business in China: A Guide to Due Diligence. I have talked enough with Jeremy about his upcoming book, seen enough portions of the book, and also worked enough with Jeremy enough to be able to guarantee this will be a great book and to urge everyone to buy a copy. Amazon describes it as follows:

“Risk is a major reason that companies fail in, or fail to enter, China. This unique book demonstrates how correctly-applied due diligence can not only reduce business risk in China, but also provide excellent business intelligence to support negotiations and business relationships. Based upon the author’s twenty years of consulting experience in China, this practical book is packed with real-world case studies of failures and successes, providing a valuable and detailed ‘road map’ to avoiding the most high-profile pitfalls of business in China”.

The book is now available on Amazon and as a Kindle ebook.

Goodreads Book Giveaway

Risky Business In China. A Guide To Due Diligence by Jeremy  Gordon

Risky Business In China. A Guide To Due Diligence

by Jeremy Gordon

Giveaway ends October 01, 2014.

See the giveaway details
at Goodreads.

Enter to win