Archive for October 22nd, 2007

How Big is China Business Travel?

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We have already seen that China business travel is having a bright scope in the sub-continent and due to the rising import/export and global sourcing trends in China, it is likely to grow even more in the future. But this is a mere quantitative statement not of much interest to a statistician or a researcher who deal and believe in numbers even if they are an estimate and not the exact value. So let us try to find out a few statistics about China business travel and how the expanding activities of import/export have affected them.

According to even the most conservative of estimates, the China business market is going to become the third largest in the world by the year 2010. This estimate is not based on any guesswork but has been found through laborious surveys conducted by the American Express business travel on the subject of corporate business travels. Of course the methods used to carry out the survey might be different but several such surveys point out to similar results. Even otherwise it is common sense to think that since China business, import/export and global sourcing is expanding at a phenomenal rate; associated activities of business travel are certainly going to increase. Agreed that in the current times technology has developed a lot and business managers can communicate with other people without ever physically leaving their location, yet at the same time it must be remembered that human interaction lies at the bottom of these activities and therefore travel related to China business will certainly be on the rise.

Another projection of future figure estimates has shown that by the end of the second decade of this century i.e. by the year 2020, business travel in China would involve at least five times more people travelling across the nation as they travel today. This certainly seems to be a very positive projection about the China business and certainly it indirectly indicates that the import/export and global sourcing activities are also going to be on the rise. Another figures show that nearly 20 billion US dollars are spent every year on the domestic travel related to business tours in China.


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How to avoid B2B risk in China

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We know that China is a burgeoning economy and it is very profitable for most ventures to carry out B2B or business to business deals within the country as well as to engage in import/export and global sourcing ventures with companies of China. However as it has been pointed out in another article that such B2B or business to business deals might be fraught with certain risks which should be avoided if one plans to carry out long term profitable business in terms of import/export or global sourcing ventures. Of course there are not hard and fast rules to be followed to avoid or minimize risk in B2B or business to business deals, global sourcing or import/export ventures, yet a few basic steps could go a long way to ensure the same. These steps should be combined with general knowledge and common sense of the individual so that the B2B or business to business transactions and the import/export and global sourcing activities do yield positive results for all concerned in the long run. Some of these basic steps have been described as follows.

Firstly all B2B or business to business deals involving import/export or global sourcing require exchange of money or payment for the goods or services which are exchanged in the process. Therefore the payment rules should be simple and fair for all the involved parties. Major proportion of the payment should only be paid once it is sure that the goods or services will be delivered on time and will be of the same quality standards as ensured by the other party.

It is a must for companies of all levels and sizes to have all the terms and conditions of carrying out B2B or business to business deals and import/export or global sourcing deals in black and white i.e. to say that they should have everything written down in order to avoid any conflicts or confusion at a later stage.

Proper registration of the brand name and logo etc. should be done in accordance with the provisions in place so that no party involved in the B2B or business to business deals can take undue advantage of the fact and the import/export and global sourcing activities are carried out in a safe and sound manner without any legal implications for either of the concerned parties or any third party for that matter.

Thus following these few simple rules one can ensure that all B2B or business to business deals and other related activities of import/export and global sourcing are carried out without any risk to any of the parties.


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