TPT September 2008

Taking the

the Chinese

L ike a base jumper diving into the Shanghai skyline or an Olympian at the start of a race, entering the Chinese market can seem a daunting and exhaustive prospect. It may be difficult for a new company to know where to begin, especially in such a competitive market as the tube and pipe industry. The new regulations introduced by China in 2004 to allow wholly foreign-owned enterprise trading companies are now beginning to take full effect. With growing market confidence, an increasing number of tube companies are establishing regional offices and subsidiaries in China. It is vital for small and mid- size companies to first make an agreement with reliable partners and distributors in the supply chain. Key considerations when establishing a company in China include customer

proximity, local infrastructure, human resources and skills base, freight logistics, communications, business development land, and investment incentives (see the China-Britain Business Council at www.cbbc.org). Another interesting fact is that a Chinese company should always be named in the same format: location/town first, company name, activity, and company structure (eg Shanghai Tianyang Steel Tube Co Ltd). For a larger company with an established reputation on the Chinese market, the competitive task is to sustain the reputation and increase efficiency within the market. One of the most successful ways to do this, as recently evidenced by a number of high profile companies such as Trumpf and Tube Products of India, is to

construct and integrate larger manufacturing facilities with increased engineering support. Tube China is the ideal event for all companies to assess the Chinese market, conduct a feasibility study, forge a business plan, promote a product, find reliable partners, buy and sell products, and a host of other activities. The event takes place for the third time from 23-26 September at the Shanghai New International Exhibition Centre in the iconic city of Shanghai. Over 300 exhibitors have already confirmed their attendance, making the show an absolute sell out. With over 30,000 visitors expected, the event will be the perfect starting place for any new company, a launch-pad for home- grown Chinese companies, and the best promotional tool for fully established companies.

› 38

S eptember 2008

www.read-tpt.com