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Lehman, Lee & Xu and Italian Partner Carone & Partners Launch Italian Desk

July 7th, 2007

Beijing, China, July 06, 2007 --(PR.com)-- Miss Valentina Salmoiraghi, an associate of the Italian law firm Carone & Partners will be working in Lehman, Lee & Xu’s Beijing Office, managing the firms' Italian Desk in China.

Starting on June 15th, she will be in charge of supporting the team of Italian and Chinese attorneys put together by Carone & Partners and Lehman, Lee & Xu to represent Italian Clients in China.

Italian companies can now rely on an Italian-speaking lawyer in China which will improve communication among the attorneys involved on the relevant projects. The decision to start the Italian Desk at Lehman, Lee and Xu has been taken in order to fulfill and satisfy the increasing number and complexity of requests of engagement that the allied firms are facing. Moreover, through the Italian Desk the firms will be in the best position to provide outstanding legal assistance to Chinese clients wishing to invest in Italy.

To learn more about the firms, please visit Carone & Partners at www.cplex.it and Lehman, Lee & Xu at www.lehmanlaw.com.

Carone & Partners is an innovative and dynamic Italian firm which combines the expertise of Italian and Chinese lawyers to assist clients in international transactions related to China and Italy/EU. The firm has offices in Milan and Rome.

Lehman, Lee & Xu is a prominent Chinese corporate law firm and trademark and patent agency. The firm has offices in Beijing, Shanghai, Shenzhen, Hong Kong, Macau, and Mongolia and is managed by Mr. Edward Lehman, who has two decades of legal experience in China.

Posted in News of China, Lawyer, Attorney & Law Firms | Send feedback »

Ford Focus drives sales growth in China

July 6th, 2007

BY SARAH A. WEBSTER

Thanks to a refreshed 2007 Ford Focus, Ford Motor Co.’s retail sales in China jumped to 93,206 cars and trucks in the first half of the year, a 25% increase compared to the same period in 2006, the company reported today.

Ford sells imported and domestically produced Ford, Lincoln, Volvo, Jaguar and Land Rover models in the fast-growing Asian country.

But Ford’s hottest vehicle in China is the Ford Focus, which has been built in Chongqing since the third quarter of 2005 and posted a six-month sales volume of 55,676.

The third-generation Ford Mondeo will be launched later this year as a major player of domestic premium CD-car segment

Ford’s history in China can be traced to 1913, when its first Model T was imported and sold in Shanghai.

Ford now owns 30% of the shares of Jiangling Motors Corporation Ltd., which produces commercial vehicles and other products.

The Dearborn-based automaker also has a 50-50 passenger car joint venture with Changan Automotive Corporation Ltd., which is called Changan Ford Automobile Corporation Ltd. Changan Ford has launched two Ford passenger cars models, the Fiesta and Mondeo. In early 2005, Changan Ford's second passenger car plant in Nanjing started construction.

In April 2005, Ford, Changan and Mazda also announced a new three-way engine plant joint venture, Changan Ford Mazda Engine Company Ltd., and the new plant has been in production since April 2007.

In March 2006, the Chinese government approved Mazda's investment in Changan Ford. The restructured company has been renamed as Changan Ford Mazda Automobile Co., Ltd. (CFMA). Changan, Ford and Mazda hold 50 per cent, 35 per cent and 15 per cent shares in CFMA, respectively.

In the first half of the year, CFMA posted sales of 93,587, a 57% increase over the same period of 2006. CFMA, which has been in operation for less than four years, is now ranked as the 7th largest automaker in China, according to the China Passenger Car Association.

Posted in News of China, Investing in China | Send feedback »

China: Foreign Architecture Firms Doing Design Activities in China

July 4th, 2007

The architecture design opportunities in China seem endless. The increased building in preparation for the Beijing Olympics has called on international designers to support China¡¯s efforts to put an international and yet Chinese face to the world for the 2008 Games. In Shanghai, the skyline changes almost daily with dramatic building exteriors complimenting the city¡¯s efforts to have ever taller buildings. This same dramatic architectural opportunity has also reached second-tier cities such as Hangzhou and Ningbo. It is no wonder that foreign firms have sought ways to participate in this exciting market. However, since the advent of Decree 114, many design firms have struggled with finding the best mode of market entry.

Essentially foreign design firms can either: (1) collaborate with a Chinese architecture institute; or (2) set up an architecture enterprise in China ("Architecture FIE") in the form of an equity joint venture, a co-operative joint venture, a wholly foreign-owned enterprise, or part equity acquisition of an existing Chinese architecture institute. The last option creates an FIE that looks like an equity joint venture, but has the benefit of immediate access to the Chinese firm¡¯s licenses, customers, and employees. Recent news shows that AECOM Technology Corp. has followed this last route in acquiring an interest in the China Northwest Municipal Engineering Design and Research Institute. The deal will be closely watched by other investors.

Each of the above options is not without its drawbacks. Collaboration with a local Chinese architecture institute limits the activities of the foreign firm to conceptual design, while the establishment of an Architecture FIE may be problematic, and require numerous regulatory approvals and a high threshold to qualify for certain design activities. An increasing number of architecture firms have begun to adopt an alternative business form by establishing wholly foreign-owned consulting enterprises in China ("Consulting WFOE") in order to provide design consulting for construction projects in China.

This article provides an overview of some of the key issues that foreign firms must consider when planning to carry out design activities in China. We review the following strategies:

Long-term: Establish an Architecture FIE or acquire a portion of the equity of an existing Chinese architecture institute;

Short-term: Collaborate with Chinese architecture institutes; and

Near-term alternative: Establish a Consulting WFOE.
Establish an Architecture FIE or Acquire Equity in an Existing Chinese Architecture Institute

The Chinese government has enacted the following regulations regarding Architecture FIEs:

Regulation on Management of Foreign-invested Construction Engineering Design Enterprise ("Decree 114") issued by PRC Ministry of Construction ("MOC") and PRC Foreign Related Trade and Economic Commission ("MOFCOM") on September 27, 2002, effective December 2002.
Implementing Rule of the Regulation on Management of Foreign-invested Construction Engineering Design Enterprise ("Decree 18") issued by MOC and MOFCOM on January 5, 2007, effective since that date.

Administrative Regulation on Construction Engineering Design Enterprise Qualification ("Decree 93") issued by MOC on June 29, 2001, effective since that date.

Project Design Qualification Standard issued by MOC on March 29, 2007.
According to these regulations, the establishment of an Architecture FIE to undertake design activities will be subject to strict and complicated approvals. The process and time-line for these approvals are outlined below:

Procedure
Relevant Authority
Anticipated Duration
Document Obtained

Approval from the Commission of Foreign Trade and Economic ("COFTEC")

COFTEC will ask for the pre-approval opinion of the provincial level MOC before it approves the establishment of the Architecture FIE.
COFTEC is the provincial level counterpart of MOFCOM
20 working days in COFTEC and 20 working days in the provincial level MOC, according to the PRC Administrative Licensing Law.

However, in practice, no application has been approved within that time period. The anticipated time would likely exceed 40 working days.
Approval certificate

Registration with the Local Administration for Industry and Commerce ("AIC")
AIC
5-10 working days
Business license

Acquiring Qualification Certificate from Provincial Level MOC
Provincial level MOC
20 working days according to the PRC Administrative Licensing Law.

Currently, no cases have been approved within that time period. The processing time will likely take longer than 20 working days.
Construction Engineering Design Enterprise Qualification

Other registrations
Public Security Bureau, local Tax Bureau, etc.
Generally obtained within one month of obtaining the business license.
Various registration certificates

The basic requirements for setting up an Architecture FIE and acquiring the relevant qualification certificates to undertake design activities are:

Experience requirements for the investors: Both the foreign investor and the Chinese investor (in the case of an equity joint venture or cooperative joint venture) must engage in construction engineering design in their respective home countries, and provide two or more engineering design achievements that were completed outside of China, with at least one of them having been accomplished in their home country.

Employee requirements for Architecture FIE: The number of the foreign technical employees of the wholly foreign-owned Architecture FIE who have obtained the qualifications of Chinese certified architect and certified engineers shall not be less than 1/4 of the total number of certified practitioners as provided in the Project Design Qualification Standard. In addition, the number of the foreign technical employees who have relevant professional design experience shall not be less than 1/4 of the total technicians as provided in the Project Design Qualification Standard.

Qualification requirement of the Architecture FIEs: The Architecture FIE is prohibited from undertaking design activities in China prior to obtaining the qualification certificate from the provincial level MOC. Its design activities should comply with, and should not extend beyond, the scope of its qualification certificate.
Currently, the design qualifications in China are divided into the following three categories, according to the Project Design Qualification Standard:

Comprehensive Engineering Design ("CED"): An Architecture FIE with this qualification may undertake design activities for all industries and projects in China.

Industry Engineering Design ("IED"): This qualification applies to 21 industries, including, but not limited to, the petrochemical industry, construction industry, and road transportation industry, etc. The Architecture FIE should apply for the qualification certificate for its particular industry.

Special Engineering Design ("SED"): This qualification is for special projects, such as curtain wall. The Architecture FIE should obtain the precise qualification for the project prior to beginning work.
The IED and SED design qualifications are further subdivided into Grade A, Grade B, and Grade C categories based upon the scale and complexity of the project. It is important to note that under Decree 93 an Architecture FIE can only apply for a Grade B or Grade C IED or SED qualification during its first two years of operation.

Minimum registered capital requirement for Architecture FIEs: Depending on the type of design activity, a minimum level of registered capital is required to undertake the project. For example, a CED qualification requires a registered capital investment of RMB 60 million, and a Grade B IED qualification requires a registered capital investment of RMB 2 million.
Establishing an Architecture FIE can be cumbersome due to the stringent capital requirements, employee hiring, and the complex and time-consuming qualification process. Foreign architecture firms can merge or acquire an existing local Chinese architecture firm and convert it to an Architecture FIE. As noted above, AECOM just acquired part of the equity of China Northwest Municipal Engineering Design and Research Institute, a large scale architecture institute in China, thus converting the latter into a FIE.

Collaborate With Chinese Architecture Institutes

The Provisional Regulations on the Administration of Foreign Enterprises Engaging in Construction Engineering Design Related Activities ("Decree 78") was issued by MOC on May 10, 2004, effective on June 10, 2004. Decree 78 allows foreign architecture firms to undertake offshore conceptual or schematic engineering design work. This includes enacting construction engineering preliminary design (basic design), and shop drawing design (detailed design) in recent projects under collaboration with locally qualified Chinese engineering design institutes ("Chinese Collaborator").

Under this strategy, the foreign architecture firm is not required to establish a separate entity in China, or to acquire the qualifications in China for its conceptual design work for construction projects in China. However, the local Chinese Collaborator must possess a qualification certificate issued by the relevant Chinese construction authorities that will allow it to carry out the requisite design activities for the project.

Currently, there is no regulation that clearly distinguishes between conceptual engineering design and design work that goes beyond the conceptual design stage. Foreign architecture firms should use the language of Decree 78 in describing their activities under a contract to facilitate the collection of fees.

As an architecture firm¡¯s activities would be limited to "conceptual design," we recommend that foreign architecture firms consider such collaboration only as a short-term strategy for doing business in China.

Consulting WFOE

The current trend is for many foreign architecture firms to create wholly foreign-owned consulting enterprises ("Consulting WFOE") that provide consulting services on design and project management activities in China under the PRC Law on Foreign-Funded Enterprise ("PRC WFOE Law").

The Catalogue for Guidance of Foreign Investment Industries does not prohibit a Consulting WFOE from providing consulting services relating to construction design and project management in China. Under this strategy, no qualification certificate or collaboration is needed to engage in "consulting activities relating to the design and project management work." Note, however, that the enterprise is precluded from engaging in direct design or project management work.

The line between what is and is not permissible in design- and project management-related consulting activities may become ambiguous in practice. However, one thing is clear: only an entity with the appropriate qualification certificate may enter into a design or project management agreement. The Consulting WFOE can review third-party drawings and provide conceptual drawings. Also, the Consulting WFOE could enter into contracts under its own name, but such contracts could not explicitly cover design or project management. The Consulting WFOE will be able to hire employees directly. However, the foreign architecture firm will still be limited in its ability to directly bid and obtain design work on projects in China.

Summary

The market entry strategy depends on the company¡¯s short- and long-term views on its potential to grow in the Chinese construction market. These approaches are not exclusive of one another, and the company may wish to consider implementing, in tandem, a short- and a long-term business plan. Even with the proper vehicle for entry, competition with Chinese firms is steep. Remember that once a company gets over these initial regulatory hurdles, the company will still encounter the realities of a competitive market. U.S. companies, bound by Sarbanes-Oxley and the FCPA, may feel that the field is still not entirely level. Similarly, foreign firms will still bear higher overhead costs because of expatriate management within and outside of China. Getting the permits, approvals, and the projects takes a lot more time and effort than architecture firms are accustomed to expending in the U.S. market. As a company moves forward in the China market, the biggest task may be managing expectations.

Posted in News of China | Send feedback »

Key issue for China's new labor law: enforcement

July 2nd, 2007

By Jude Blanchette | Contributor to The Christian Science Monitor

Shanghai, CHINA - The comprehensive labor law that China's top legislative body passed Friday includes provisions that have appeared in previous legislation. But what may be different this time, some observers say, is the government's willingness to enforce mandates protecting workers' rights.

Scheduled to come into effect on Jan. 1, 2008, the law stipulates that employment contracts must be put in writing within one month of employment. It also says that employers must fully inform the worker of the nature of the job and of their working conditions and compensation. Furthermore, it limits the ability of employers to use temporary laborers.

But the law's impact lies in how the government interprets and enforces it. "As is always the case with China's laws, the real question will be in whether the new laws are enforced, how they are enforced, and against whom they are enforced," says Dan Harris, an expert at the law firm Harris & Moure.

But, he adds, "there is a feeling the new labor law is more likely to be enforced than the old and, in particular, will be enforced against foreign companies."

Indeed, organizations representing firms doing business in China have objected to certain provisions they say are unclear. In comments last year, the US-China Business Council warned, "The Draft Law may … reduce employment opportunities for PRC workers and negatively impact PRC's competitiveness and appeal as a destination for foreign investment."

On Friday, Xin Chunying, the deputy chairwoman of the National People's Congress Law Committee, tried to allay the fears of foreign companies. "If there were some bias," she said, "it would be in favor of foreign investors because local governments have great tolerance for them in order to attract and retain investment."

The law gives oversight power to labor unions for collective agreements and the implementation of new employment regulations, but because independent labor unions are illegal in China, this duty will fall to the government-sponsored All China Federation of Trade Unions, an organization with deep ties to the Communist Party and local government officials.

Since the first draft of the law was made public in 2005, it has gone through three drafts and elicited more than 190,000 comments from the public.

In a statement issued Sunday, the European Chamber of Commerce welcomed the law's passage, in part because it moved the labor market in the direction that many European countries have gone. According to a statement posted on their website, "After the comprehensive drafting process, the European Chamber is not concerned about the effect of the law on European investment in China."

Since its emergence as an economic powerhouse more than 20 years ago, China has been dogged by criticisms of poor working conditions, the use of child labor, and willingness to placate multinational corporations.

Friday's law comes as the government tries to deal with these complaints and dampen social unrest in rural areas. Indeed, the government is in the midst of a campaign to reduce the impact of the recent discovery of slavery-like conditions in Shanxi Province's brick factories.

Early last month, more than 400 parents from Henan Province whose children had been abducted posted an open letter on the Internet. Their children, it came out, had been sold to work in brick factories in Shanxi Province.

It has since been revealed that thousands of others have met similar fates at brick kilns, many of which are unlicensed After Chinese journalists picked up the story, it rapidly spread around the world, causing outrage and shame in China.

Last week the draft law was amended to punish officials who ignore labor abuses with prison time or other penalties. Ms. Xin said that "The labor contract law makes detailed provision concerning this issue following the exposure of the forced labor scandals."

Posted in News of China, Opinion and View, Candidates, Labor and Worker, Lawyer, Attorney & Law Firms | Send feedback »

Fifteen New Partners For Davis Polk - Law Firm & Legal News

July 2nd, 2007

NEW YORK-- LAWFUEL - The Law Firm Newswire --Davis Polk & Wardwell today announced that Bjorn Bjerke, Mary Conway, Michael Davis, Avi Gesser, Harald Halbhuber, Kimberley D. Harris, Kirtee Kapoor, Jinsoo H. Kim, James C. Lin, Arthur S. Long, Mark M. Mendez, Edmund Polubinski III, Lanny A. Schwartz, Sarah K. Solum and Mischa Travers have been elected partners of the firm effective July 1, 2007. Davis Polk now has 160 partners in its offices in New York, Menlo Park, Washington, D.C., London, Paris, Frankfurt, Madrid, Hong Kong, Beijing and Tokyo.

Mr. Bjerke is a corporate lawyer focusing on complex structured products and derivatives including asset-backed debt instruments, fund linked instruments and credit based arrangements. His recent transactions include representing a large real-estate fund complex in a multi-billion dollar lending arrangement; representing large financial institutions in developing various fund-linked structures and derivative trading platforms and establishing synthetic CDO structures. He also represented ISDA as drafting counsel in connection with the 2006 ISDA Fund Derivatives Definitions and Delta Air Lines in connection with certain financing arrangements linked to Delta Sky Miles.

Ms. Conway is a tax lawyer concentrating in investment management matters, including the formation and operation of private equity funds, hedge funds, mutual funds and other pooled investment vehicles. She has provided advice to Chilton Investment Company, Credit Suisse, Crestview Partners, FrontPoint Partners, HRJ Capital, Integrated Finance Limited, J.P. Morgan, Magnetar Capital and Morgan Stanley, among others. Her practice includes partnership matters and international tax matters.

Mr. Davis is a corporate lawyer concentrating in mergers and acquisitions. The matters he has worked on recently include advising IPSCO in connection with its proposed sale to SSAB Sventskt Stål; Marsh & McLennan in connection with the proposed sale of Putnam Investments to Great-West Lifeco; IPSCO on its acquisition of NS Group; FrontPoint Partners on its sale to Morgan Stanley; MCI on its sale to Verizon; Ford on its acquisition of plants from, and the restructuring of its business relationship with, Visteon; and various other private equity and venture capital transactions.

Mr. Gesser is a litigator concentrating in securities class actions and enforcement, white-collar criminal defense matters and complex commercial cases. Currently, he is representing a major investment bank in class actions involving analyst independence issues. He also recently served as a lead negotiator of a multi-year comprehensive agreement between a large consumer products company and multiple governmental bodies related to international trade issues. He has represented corporations and individuals in various investigations that have been resolved favorably prior to trial. He was also part of the litigation team representing Delta Air Lines in its Chapter 11 restructuring.

Mr. Halbhuber is a corporate lawyer in the London office. His practice focuses on a broad range of corporate finance and mergers and acquisitions transactions. In corporate finance, he has advised both issuers and underwriters on debt and equity transactions. Most recently, he worked on several high-yield debt issuances by European issuers. He has also worked on several initial public offerings and rights offerings. His recent M&A transactions include advising Morgan Stanley on acquisitions in Russia, Italy and the U.K., and Carl Zeiss SMT in the structuring of a joint venture with Cymer and the acquisition of a U.S. nanotechnology company.

Ms. Harris is a litigator with extensive experience representing corporate clients in a variety of criminal, regulatory, and complex civil matters. Recent representations include: the Audit Committee of an auto parts manufacturer in connection with an internal investigation, as well as related criminal and regulatory investigations by the federal government; a major investment bank in connection with criminal and regulatory investigations of the bank’s IPO allocation practices; a former director of the New York Stock Exchange in connection with an investigation by the New York Attorney General and the SEC; and a major pharmaceutical company in connection with multiple complex civil class actions in both state and federal court.

Mr. Kapoor is a corporate lawyer who has had extensive experience in corporate finance, restructurings, workouts and mergers and acquisitions transactions. His experience also includes several transactions in India. His recent matters include advising The Gillette Company in connection with its $57 billion acquisition by The Procter & Gamble Company; Oracle Corporation on its $600 million acquisition of a majority stake in i-flex solutions; Oracle Corporation on its $5.85 billion acquisition of Siebel Systems and Delta Air Lines on its Chapter 11 restructuring generally and in connection with the over $10 billion unsolicited bid from US Airways.

Ms. Kim is a corporate lawyer concentrating in lending and other corporate finance transactions. She represents corporate clients and financial institutions in secured acquisition and other leveraged financings, unsecured financings, debt restructurings and exit financings. Recent representations include Freeport-McMoran Copper & Gold in a $11 billion senior secured financing in connection with its acquisition of Phelps Dodge, J.P. Morgan in a $4.5 billion debtor-in-possession facility for Delphi, Delta Air Lines in a $2.5 billion senior secured exit financing, and Goldman Sachs Credit Partners and Credit Suisse in a leveraged acquisition financing for Education Management.

Mr. Lin is a corporate lawyer in the Hong Kong office, advising on public and private corporate finance transactions, including initial public offerings, high-yield debt offerings and private equity investments. He advised China Merchants Bank on its $2.66 billion HKSE listing, Air China on its $1.24 billion HKSE/LSE listing; and the underwriters in the privatization and NYSE/HKSE listing of Aluminum Corporation of China. Mr. Lin has also worked on several NASDAQ IPOs, including the $124 million listing of Baidu.com and the $468 million listing of Himax Technologies. He regularly advises a number of Asian high-technology companies on U.S. law matters.

Mr. Long is a corporate lawyer advising U.S. and foreign banks on the regulatory implications of M&A transactions; private equity investments; the offering of new financial products, including derivatives; enforcement , compliance and bank insolvency issues; and, in the case of foreign banks, establishing U.S. offices. Representative matters he has worked on include Banco Santander’s investment in Sovereign Bancorp; SLM Corporation (Sallie Mae) on its proposed sale; the acquisition by Citizens Financial Group of Charter One Financial; Citigroup’s acquisition of Banamex; Banco Bilbao Vizcaya’s merger with Argentaria; and JPMorgan’s investment in KorAm Bank.

Mr. Mendez is a corporate lawyer focusing on equity derivatives. Recently, he has advised Citigroup, Deutsche Bank and Goldman Sachs as book-running managers of a $1.5 billion offering by General Motors of convertible senior debentures and a Citigroup affiliate on the related capped call transaction; CVS Corporation in connection with a $2.5 billion collared accelerated share repurchase; Montpelier Re Holdings in connection with two variable share forward sale agreements; Morgan Stanley and Merrill Lynch in connection with the issuance of debt securities mandatorily exchangeable for shares of Class A common stock of Nuveen Investments; and JPMorgan in connection with the Microsoft Employee Stock Option Transfer Program.

Mr. Polubinski is a litigator representing corporations and individuals in a wide range of securities, professional liability, products liability, general commercial and acquisition-related litigation in federal and state courts. He also represents corporate and individual clients in investigations and other proceedings before various regulatory agencies, including the Securities and Exchange Commission, the Internal Revenue Service, and the New York Stock Exchange. Recent matters include the defense of an investment banking client in putative class action antitrust litigations; the representation of a corporate issuer and individual clients in class action securities litigation and a related SEC investigation; the defense of a major pharmaceutical company in nationwide consumer protection and product liability litigation; and the representation through trial of a big four accounting firm in litigation arising out of the failure of a large national bank.

Mr. Schwartz is a corporate lawyer advising on securities compliance, regulatory and transactional matters. His clients include major international banks, broker-dealers, securities exchanges, consulting firms, a securities industry trade association and a large life settlement provider. From 1999 to 2005, he was executive vice president and general counsel of the Philadelphia Stock Exchange. Previously, he was managing director and counsel at Bankers Trust Company, specializing in bank and broker-dealer regulation and investment banking. He speaks and writes regularly on securities market structure and regulatory issues, and was formerly a member of the adjunct faculty of Columbia University School of Law.

Ms. Solum is a corporate lawyer in the Menlo Park office, advising on capital markets transactions, mergers and acquisitions, SEC disclosure and corporate governance. Recent capital markets transactions include convertible debt offerings for Cadence Systems, Cypress Semiconductor and Equinix; investment grade debt offerings for Comcast, Oracle and Seagate; follow-on offerings for Kaiser Aluminum, Wet Seal and Onyx Pharmaceuticals; initial public offerings for Chipotle Mexican Grill and CAI International; and McDonald’s spin-out of Chipotle Mexican Grill. Mergers and acquisitions she has worked on recently include advising NetIQ on its sale to Attachmate WRQ and Oracle on its acquisitions of Siebel Systems and PeopleSoft.

Mr. Travers is a corporate lawyer in the Menlo Park office, advising technology companies and their underwriters and investors on mergers and acquisitions, securities offerings and other corporate transactions. Recent matters he has worked on include KLA-Tencor’s acquisitions of ADE, Therma-Wave, SensArray and OnWafer; Software AG’s acquisition of webMethods; Affymetrix’s acquisition of ParAllele; Comcast’s strategic partnership with TiVo; a $2.25 billion debt offering by Comcast Corporation; Affymax’s initial public offering; convertible debt offerings by Borland Software, Boston Properties, Informatica, Intel, Macrovision and Xilinx; and various investments in private companies by affiliates of Richemont.

Posted in Lawyer, Attorney & Law Firms | Send feedback »

How to find a job in China (FAQ, information & tips)

July 2nd, 2007

How to find a job in China (FAQ, information & tips)

USEFUL WEB SITE SERVICES FOR CHINA JOB SEEKERS:

To get a quick and easy list of China job postings, although limited, look at the following. Also a good idea to keep these in your pocket so you have one ear on the street all the time:

Check out China Insight's very own China job listing board, or list yourself on our China job seeker board.

Sign up with Asia Net, which posts jobs on its web site and delivers e-mail regularly with job postings. Will send e-mails specifically for jobs in Asia for people with Chinese, Japanese, and Korean language skills. Most are techie jobs, but once in a while something interesting comes up.
Wang & Li has all the top spots for Greater China, and competitive market information.
Alliance - mainly jobs for PRC locals, but an on-the-ground, professional recruitment group with exclusively PRC job listings.
Global Villager/ CareerChina has a full array of China oriented information.
Surf for jobs in China.

OUR PERSONAL ADVICE ON THE JOB SEARCH:

In our four years in Beijing, we have seen many friends come to China and find jobs. Many we have helped, and frequently we are asked the same questions by those considering taking the leap in coming to China. Briefly and succinctly, below are our own views on: the various paths people have taken, the types of jobs they have found, and advice if you are looking for a China job. This advice is primarily for college graduates or 20 somethings just getting their feet on their ground. If you have an MBA from a top business school or can command a top job by virtue of your experience, much of the below probably may not pertain to you.

Send us info on changes in the job market so we can update this page

MOST FREQUENTLY ASKED QUESTIONS:

Can I find a job?
How much can I expect to earn?
How and where should I start my job search?
How should I prepare before I come?
What are key issues when coming?
What’s important in the job search?
What types of jobs are out there?
What are key elements of a package?
What’s your final advice?
Return to (a little) China Insight main page

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DETAILED INFORMATION:

CAN I FIND A JOB? Yes. You will need to be resourceful, a bit lucky (all jobs are like that), and you may have to bite the bullet by sleeping on the floor of many apartments and eating fang bian mian (instant noodles) for several months, but it can be done. The key is being persistent, patient and lucky. More important is that you first set your own goals and parameters: what field do you want to be in, what salary do you expect, how long can you live without a salary, what is your ultimate goal in coming to China, etc.?

HOW MUCH CAN I EARN? If money is most important to you, you had best look first for a China job in the States or from Hong Kong. Any company that sends you overseas will most likely give you a full package plus great benefits. The downside is that these jobs are harder to find, especially if you have limited relevant experience; it also generally means working/training in the States for 1-2 years before heading over, but not necessarily. Even if money is not important to you, before you leave the States you ought to do a heavy job search on that end. If you find a job in China (see details below on compensation levels), they will most likely pay you less, although you can live well and still save money on a decent salary. See details on compensation below.

HOW AND WHERE SHOULD I LOOK FOR A JOB? Many people come and then look for a job. It's probably the true China person who chooses this riskier strategy. We do advise you to first look in the States, though, or in Hong Kong, before packing your bags. Hong Kong can be a prime job market, but unless you have a friend there, it is very expensive to stay and hang out. Who knows also? Maybe you get a good job in Hong Kong and they send you into Mainland China. Don't come here without first trying your luck in the US and/or HK. First try the web sites we recommend above, mailing out lots of resumes and using any network(s) you may have.

HOW SHOULD I PREPARE BEFORE I COME/WHAT SHOULD I BE PREPARED FOR? Be flexible: prepare all sorts of resumes, with different slants. Be prepared to be patient and not find a job for several months. At the very minimum, before coming prepare at least one resume with the "teacher" slant, as this is a sure backup to make money.

Also, if you arrive without a job, be prepared to spend 3 months getting settled, brushing up on your Mandarin, making connections and finally landing a job. Hopefully you won't need that long. Have at least enough money in your pocket to cover your expenses for this period. Figure about 1000 USD a month should cover you no problem, but that's if you are resourceful. The big chunk of that is housing, so if you find a dorm or crash with a friend, you can live on less. Many of us can live on 200 USD a month, outside of housing, in fact. Eat cheaply, not much western food, don't party a lot, take public transport or ride a bike, and live in a dorm, crash on someone's floor, or find a cheap hotel. Be creative. Housing and visas will be your main concern (see below), and oftentimes it's advisable to come first and study or work as a teacher, just to get your feet solidly on the ground and have housing and visa problems resolved right off the bat..

WHAT IS IMPORTANT IN THE JOB SEARCH? Get to know people: network, network and network. Send out resumes; reach as many people as possible. (But don't bombard us with e-mail). Many people who come as students also intern at companies or for the US embassy commercial section, or U.S. companies. The internships in the commercial sections can often lead to good job offers. Unpaid, but you are working for your future right? If you work in a certain sector of the commercial section, you'll be able to somewhat become an expert on it, and you can impress all those US companies in that sector who come through the embassy wanting to know about China. Latching on to a big multinational from the China side, save having incredible working experience or a top degree, is extremely difficult. However, local and many small western companies can offer interesting opportunities. Likwise, another advantage of coming on a study program first, particularly the better ones, is that they will help place you in an internship. This internship sometimes can turn into a job.

If you come to Beijing without a job, it is obviously better if you have some work experience or great Chinese. Best is both. You have an advantage if you can push one of these when job seeking. Take the position of the company you are interviewing with: why would they want to hire you? A Chinese person who is experienced and already knows the environment here earns probably 1/10 to 1/2 of the salary that you might command. Or a company could hire an experienced expat who knows their company and send them to China. Your chances improve if you have relevant US job industry experience or great Chinese. Gone are the days where good Chinese will get you by, or so I have been told. Many companies are also rethinking their China strategies and cutting back, and in the wake of the the rest of Asia's economic woes, the next year or so may be a period of retrenchment. But maybe you are just lucky. Remember, for as many local expats who say it's hard to find a job here, almost 90% of them, when asked how they found their job in China (and most got their foot in the door with little work experience behind them), will say, "Oh, I just got lucky."

WHAT ARE THE KEY ISSUES TO CONSIDER WHEN I GET OFF THE PLANE? Your immediate problems will be your visa and housing. Come to China on a tourist visa and you will most likely have to leave to change it's status or to extend the visa eventually, which may mean taking an expensive trip to Hong Kong. Because of the visa problem many people come and teach (resolves both visa and housing issues right off the bat) or come as a student (also resolves both issues). This allows you to get your feet on the ground and build up connections and language skills. If you come and then look for English teaching, they will seldom give you a visa. If you take the student/teaching path, you will usually have to be locked in for 6-12 months, but that's alright. Not cool to skip out on a teaching job.

WHAT TYPE OF JOBS/OPTIONS ARE THERE?

Teaching English
Being a student
Interning in the U.S. embassy/a western company.
Translating services
Legal assistant
Journalism
Business
Odd jobs for local Chinese companies
Be creative - think outside the conventional job box
Start something on your own - be an entrepreneur

WHAT SHOULD A PACKAGE INCLUDE? There are several issues here to consider, which I elaborate on below: salary, housing allowance, healthcare, vacation/plane ticket, visa, taxes, other issues.

Your package will depend if you are hired as an expat from abroad or a local hire. Obviously if you are brought in from overseas, you can expect [spam word detected] and a full range of benefits. Salaries range in the industry, but if you are sent here, figure you will get $25-100K, hardship posting pay, standard bonuses, housing allowance of at least $1500-6000 a month, 3-5 weeks paid vacation, and round trip air ticket once a year (and perhaps more for R&R leave time), full US standard healthcare, evacuation insurance through AEA, SOS, or MEDEX, tax coverage, shipping fees covered; and all other reimbursable expenses and training that would accrue to you as an employee. Sometimes language lessons are paid for as well. If you are high enough up or the position requires it, you will get a car and/or driver, a mobile phone, or at least have travel to and from work reimbursed.

If you are hired locally, the story is drastically different, and you should have no illusions about landing the above. Your compensation of course varies on the company, your background, the industry, and your position. Nevertheless, here's what you can expect, as an expatriate local hire:

SALARY: As a journalist or clipper, you might get $500-1500 a month and up; As a translator or legal assistant $15K - 30K; In business typical salaries are between $15-50K, but can be higher if you have experience in the industry or get lucky enough to latch on to a big company. As a teacher, you can earn $5-20 an hour, but work can be patchy. Remember that your salary is only as valuable as the rest of the package: housing allowance, tax coverage, health insurance, etc. can tilt the balance.

HOUSING ALLOWANCE: Housing in Beijing is the biggest ma fan (nuisance) for expats. Living in a _legal_ apartment can run $1200 at the cheapest, and up to $2000 for something reasonably located. Don't expect much for housing allowance, but figure the cheapest "non-legal" apartments will run about $300-600 per month. Lots of local expats live in these apartments. Some expat packages don't include housing; others will give you perhaps $1500 a month at most. Few local hire expat jobs will provide you an apartment - you'll have to find one on your own. If you choose to live in local housing, you can save money, but you will always live with the fear of the gong an ju (PSB) knocking on your door. (Yes, I've been booted from my apartment more than once, but that is another topic - see separate section - seeking local housing). The good news amid all of this is that housing prices are coming down in Beijing; overdevelopment has changed the real estate scene from a seller to buyer's market (though legal housing still ain't cheap), and the government has gotten a little more lax with living in "local" housing.

HEALTHCARE: Ideally you should get a US healthcare package or evacuation service through SOS or AEA, the two biggest providers in Beijing. Figure the US healthcare package to be worth $200 per month in your salary. If you get evacuation insurance (your parents would want you to have this), it will run the company $300 per year, but doesn't mean as much if you don't have health coverage also. (A visit at Beijing United Family Hospital is around $80). In Beijing, aside from Beijing United Family Hospital, you might check out AEA and IMC for western healthcare. Cheaper but OK are the Sino-German Health clinic or the Hong Kong Medical Clinic. Otherwise, if you go to a Chinese hospital, you'll pay less and still get decent treatment at Peking Union or The Sino-Japanese Hospital. There is a difference is the healthcare provision, though; I didn't spend three years setting up Beijing United for no reason at all! For inquires about Beijing United plans, send them an e-mail

VACATION/PLANE TICKET: Standard for an expat who signs on for 1-3 years is 3-4 weeks of paid vacation, and one roundtrip ticket back to the States per year. But sometimes you won't even get this.
VISA: Your company should handle this. If you are lucky, maybe they send you to Hong Kong every 3-6 months to get a new visa. This works out well (go buy some new clothes and get a needed rest from Beijing), and also helps you avoid taxes in China. Visas are a major tou teng (headache) if your company refuses to handle this for you. Insist on your company handling your visa and all related work permits.

TAXES: Big companies will handles your taxes for you (meaning what they quote you as your salary is after tax). Smaller ones probably will deduct taxes from your pay; others will not report it and leave it up to you. If everything is done in accordance to China and U.S. law, however, you can expect the following: Around 8% of your salary should be deducted for Social Security and FICA by your company (if it is a US company). If you earn less than $72,000 year (and if you don't, I'll trade jobs with you), you are totally exempt from US personal income taxes if you spend more than 330 days of the year outside the U.S. Just make sure you file (you get an automatic extension until June 1, by the way) the 1040 form as well as the 2555-EZ form available in the States or at the US embassy. If your company follows Chinese law (not all do), you pay a graded tax (meaning you pay x% on income from 0-3000 RMB/month; y% for the amount from 3000-5000 RMB/month; z% for the amount from 5000-7000 RMB/month, etc. - note figures not accurate). Whatever you earn, figure China taxes are less than your equivalent grade in the States. For example, if you earn 25,000, you might pay on average 20% income tax in the States (correct me if I'm wrong - I've never worked there!); in China, the level is closer to 13%. In short, if you are thoroughly confused: if you work in China, make a real salary, and follow all US and China laws, you pay less taxes than if you worked in the States for the same salary -- but not THAT much lower. If you can find ways to get the company to cover taxes, all the better. If you don't pay China taxes, the burden should be on your company.
Other issues: It's always good to get perks on the job: e-mail, mobile phone, pager, computer, reimbursed rides to and from work. Standard bonuses are a month salary or less, or if you are in sales, commissions. Throw these jobs in to sweeten the deal. Standard raises vary from year to year, but are between 3-15%.

FINAL ADVICE: No matter what job you land and what compensation you get, know there will always be someone who earns more than you. The grass will always be greener on the other side, as they say. Pick a job that you are interested in, and offers you a chance to develop. If you want to know China and speak Chinese, pay attention to the company culture: will you speak Chinese? Who are the expats? What life do they lead? At the same time, remember that you have to negotiate your contract. Look out for yourself, as no one else will; that's why we've written this and put it in public access cyberspace.

[Please keep in mind too this is written based on our experience, which is all in Beijing. We hear Shanghai is a good market, if not better than Beijing, and the terms may all be different. Also I haven't updated this; if China's rapid changes are any indication of change in the job market, maybe all this will be different tomorrow.]

FINALLY, will you be able to find a job? Of course. It may not be easy and it might not be what you like right off the bat, but there are jobs out there. Know what your goals are and also know how long you can stay without real employment (read: income). Worse comes to worse, you work on your Chinese and travel and witness first-hand the greatest economic and social revolution of all time. That's not so bad, now is it? The longer you stay and dedicated you are, the better your chances become of finding something interesting (and interesting jobs there are). Also remember that once you work, and if the job is demanding, you won't have time to bum around and see the craziness of Beijing/China. If you can't find a good job, use the time to study Chinese -- trust me, you'll never regret it.

This page authored by: Michael Wenderoth[/b]

Here are a few links that will save you loads of time finding a job.

http://jobs.amcham-shanghai.org - Quality jobs from many fortune 500 companies. Mostly managerial and Director positions.
www.51job.com - Top Chinese Website: Milions of jobs and viewers, but you gotta get past the advertising first.
www.zhaopin.com - similar to above. 2nd in race.
www.chinahr.com - linked with Monster. Similar to 2 above.
www.thishanghai.com - good variety of jobs, not always best quality.
www.asiaexpat.com - Shanghai page has loads of jobs. Good amount of traffic also keeps jobs fresh.
www.shjob.cn - Shanghai version of 51 job. Recently with multi million Euro injection.
www.chinaonline.cn.com - good site in general, but not loads of postings.

All of the above are useful in finding work, the Chinese websites are more catered to Chinese obviously, even though they do have english version. The local community websites, like Shanghai Expat, are good for general range of jobs and have good response to postings or requests. Chambers of Commerce are good to find quality jobs as their members have a majority of big companies, multinationals and such.
There are plenty of ways to find jobs in Shanghai and China, but websites are certainly a good start!

Posted in Living & Working in China, Candidates, Labor and Worker, Comp, Salary & Benefit | Send feedback »

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