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Sign up with Google Sign up with FacebookQ: Is marrying a Chinese the only way not to get screwed if starting a business in China?
When starting a business in China, you've got one of two options: create a wholly-owned foreign enterprise, or a joint venture with a Chinese.
The first is very difficult, will take more capital, more red tape, etc. while the 2nd otion is simpler but requires that the business be in a Chinese person's name (I think).
Taking into account these factors, doesn't marriage to a Chinese seem like the best way to go about it?
12 years 4 weeks ago in Business & Jobs - China
I have done business under both options. If you want to get money out of China, then going with a WFOE is the best way to go if you can afford it.
And yes, if you choose to setup a local joint venture, the company will need to be in the name of a local. Hopefully that local is someone you can trust with your life. Because that is just about what you would be doing.
If you can trust your better half enough to more than sleep next to her, go ahead, but remember that everything in her name is hers in case of a divorce. I know of one case, a local Aussie, who opened two bars/restaurants, and both quite succesfull by the way. Then found that his wife of seven years was a lesbian too, and had had lovers all the time (found her in bed with her sister in law). He filed for divorce, and since everything was in the former wife's name, she kept everything.
I dislike partners, I have had lousy luck with them in the past. So, it may be a little more time consuming and paperwork, but the only way for me is with a wholy own foreign business, with the extra of getting a work permit and residence permit, and a Foreign Expert Certificate as a result of the WOFC.
But what it is best for me, may not be best for you, so do your soul searching and decide what will give you peace of mind
Wow, I don't think marrying someone just for business is worth it.
Chinese law states that a foreign owned business must be at least 50% Chinese.
Abou the Aussie, that sucks. I had another experience, a American man and Chinese woman owned a business all in her name, but when they divorced he got 50% of everything once he proved that it was he that was running most of everything.
They kept the business but he went back to America, showed 300,000 rmb and got 50% ownership of the business.
I do business a few years.
I think business is business, and marriage is marriage, it is not good to mix them . It is better to look for a trustble business partner.
Please do not assume that because you are married to a Chinese national, business r others will treat you any different when it comes to doubling or trebling the price, or even cheat you of all you cash. Often you will still be seen a the foreigner who can be cheated. Marriage is not a secure bond.
If you're willing to marry into a loveless marriage then it is a good idea. There are many Chinese women looking to tie the knot as soon as possible, with age and heavy peer pressure playing huge factors.
You're starting a business, she sees her financial future as safe. It works for you both.
dharma86:
Obviously you should know her and make sure that you get along first.
Yes. And trust him/her more than you trust yourself. People often don't want to admit it, but we make mistakes too.
Pretty much in all 4 of my business ventures with partners in China, failed. I still have two up and running, but the money seems to keep going into other peoples pocket.
Spiderboenz:
ithinkthathewassayingthatyouhavetotrustyourpartneralotifyouaregoingtodothat,becauseyouareonlyhuman.
Why on earth did so many westerners bring their businesses to China?
Goes to show how smart, patriotic and loyal businessmen are.
I'm glad the Chinese fleece them, it's what they deserve.
And they've created a monster.
If we have to accept "trickle down" economics, we ought to first make sure that those at the top aren't pissing into the wind.
Shining_brow:
You mean, like McDonalds, Burger King, Starbucks, Costas, Carrefoure, BMW, Mercedes, MG, Apple, Samsung, Nike, Adidas..... ah, crap, I could go all day....
China has money.
Business is about making money.
What's the problem?
Why has this thread been resurrected after 2 years by someone with only 1 post????
laowaigentleman:
China has money?
No it has a lot of consumers but there are plenty of guardians who charge for access and once you finally gain access you find that these "consumers" only buy on select holidays and festivals in order to flaunt some of their wealth (which is borrowed from banks and family members for the most part).
This is why you have to come over with piles of cash and take a bunch of parasites to dinner all of the time.
I don't understand why you're comparing multi-national corporations to nations.
Shining_brow:
LWG - you confuse me!
Ok, there are many people in China who have money - hence, businesses from overseas have come into China... to take their money. The above mentioned companies are obviously making some money, regardless of the hassles and crap that goes with it.
so, why shouldn't other people also try to bring a business here - or open their own business (of some type). Also remember, a lot of those business people here are also into exporting from here to... somewhere overseas. Is it a bad idea???
laowaigentleman:
I can understand the multi-nationals investing because they can absorb the opportunity cost as well as all the other little contingencies which come up - ie: local klepto needs a cut in return for access.
I know it might be rude to answer this question with another question, but would you consider working for ten to fifteen years, saving your money and then using that as start up capital in a country with no rule of law which has a reputation for extreme levels of embezzlement?
China's for the big companies. They can wander in to be fleeced if they wish. I, for one, would never employ people who need constant supervision, but then, I'm not a businessman, so it's of no immediate consequence what I think about China's business and work ethics and political system.
Mr. Salacious Crumb, I would thought getting married would be the best way to get screwed by a Chinese person. Jokes aside If you are already married then it would make sense that the Chinese partner of the business is your wife. I would not recommend marrying someone for the purpose of business. I won't say why because we are all humans and know why.