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Stolpersteine und Chancen bei einer Expansion nach China
Susanne Sahli & Nathan Kaiser Egerkingen, 9. Juli 2012
www.eigerlaw.com www.truecolours.ch
• Introduction • Stories and Anecdotes • Does law matter in China? • What are contracts worth in China?
• HR: Success factors as an Expatriate • HR: Leadership in Greater China
Agenda
• two party Joint Venture with three parties
• the eternal, superhuman Joint Venture
• Incentives to come - and to stay!
• your trusted distributor in China
• your independent middle man in China
• SAFE: financing limits that really apply
• recognition of foreign court judgments
Stories and Anecdotes
Typical HR Problem Cases
• the local CFO from Germany
• the local GM
• the foreign, very flexible, company in China
• your trusted accountant
• the foreign young business man
• ... and just normal employees...
Stories and Anecdotes
The environment is different in China:
• Stock market in China
• Focus on FIE / comparison with local
companies
• Internal fraud – „à la Chinoise“
• Environmental issues – „à la Chinoise“
• Food issues – „à la Chinoise“
• Small customs issues – „à la Chinoise“
Stories and Anecdotes
Typical Cases of Fraud:
• Inventory theft
• Accounting fraud
• Fraud at POS
• Kickbacks to suppliers / from customers
• Competing activities
• Breach of confidentiality
• Tax and customs fraud
Stories and Anecdotes
• Cultural and social settings in a rapidly
evolving society
• „guanxi“ as cornerstone of business model?
• Lack of enforcement by judicial apparatus
• Immature HR market: power combined with
low salary
• ... opposite: GM with "no power" but high
salary
• The poker game under the table
HR Landscape in China
HR landscape in China
• 18 Mio labor enter workforce every year
• The war and retention for top talent intensifies,
strong headwinds for Caucasians
• Suitably, qualified leaders with fitting values are
hard to find and come at high cost
• Localization of top level positions continues
• Solutions for Executive search, assessments,
talent management, coaching and on boarding
programmes highly in demand
Leadership in China demands:
• Understanding of cultural differences
• Ability to look at things from others
person’s perspective
• Being comfortable with uncertainty
• Flair for situational leadership
• Rapid decision making capability
combined with patience
• Robust mentally and physically
Expatriate transition:
From an employer’s point of view
• What are selection criteria and do we have a
sound and proper recruitment process in place?
• How do we include spouses and family members
in the process?
• How could a transition coaching help in the first 6
critical months?
• Do we give access to network opportunities (e.g
Swiss business community)?
• How do we use the gained know-how when the
assignment is completed?
Expatriate transition:
From an employee’s point of view
• How do I prepare myself and my accompanying
person?
• Are my language skills sufficient to ‘survive’?
• Who can help me to make the transition as smooth as
possible? Do I have access to social and business
related network opportunities?
• Am I aware of the cultural differences, local living
conditions and leadership requirements?
• Am I flexible enough to deal with uncertainty?
• What is my motivation to do it?
Wie machen es denn die Chinesen?!?
How to do it right:
Due Diligence: • targets: employees, suppliers, customers,
(JV) partners • verify SAIC, TM, domain names and similar
registration documents • Professional advice is recommended
Documentary: • Employment agreements & Sales Contracts: • Confidentiality, IPR, Non-competition
Organisational: • family / accompanying person
How to do it right:
Organizational: • HR organization and processes • controls, surprise visits, electronic surveillance,
etc. • Whistle blower / hotline • Just because you‘re paranoid doesn‘t mean
they‘re not out there to get you...
Comprehensive HR Compliance Training: • (regular) interviews • Sound selection process and criteria • (regular) training and retention programmes • Sign-offs?
How to do it right:
• Speed & Coordination • facts and information gathering • Coordination with service investigators,
(external/internal) CPA, attorneys, (external/internal) IT personnel
• Once facts are clear, establish the law... • prepare options and scenarios, game plan • Legal actions: use strategy, combinations,
staggered attacks
What to do when things go wrong:
• Know thy authorities! • Know the media! • Know thy law! • Know thy enemy! • Use competent external help and specialists • Strike a balance: formal and informal actions • In China: use „adminstration-friendly“ tactics
What to do when things go wrong:
Thank you for your attention!
謝謝!
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