DUSA European Association Suzhou is a private, non-profit organisation based in Suzhou, Jiangzu Province, China. It was founded in November 2002 by several German companies with the goal to provide a forum for these companies, their executives and other individuals with interests in European business and inter-cultural aspects. DUSA identifies, examines and discusses matters affecting the economic, industrial, commercial and social objectives of its members and tries to facilitate solutions for actual issues and challenges.

Fiducia Management Consultants supports international companies in Greater China and APAC with a range of advisory and outsourced services. . For 40 years, Fiducia has helped clients navigate China’s complex but promising business landscape by delivering integrated solutions in corporate set-up, market advisory, tax and accounting, trade, and executive search.

Fiducia is a team of 130 experts in Beijing, Hong Kong, Shanghai, Shenzhen, and Singapore, which combines local know-how, global understanding, and industry-specific expertise.

2. Your Pathway to Localisation

Finding the Optimal Location 

Establishing a manufacturing base in China or transforming existing operations can be a daunting prospect. Often our Clients have a host of concerns such as inadequate market knowledge, cultural differences and navigating complex legal systems.   

Experience tells that the success of a market entry strategy – especially for manufacturing companies – is pre-conditioned by the thoroughness of three essential preparation phases: Market Analysis; Location Assessment; Planning and Budgeting.  

Hiring the Right Talent

The availability and cost of talent are central to the success of a new production plant. Many foreign firms operating in China struggle to find the right talent to help them realise their growth plans.  

Moreover, hiring Western talent will remain problematic for the foreseeable future. Due to the strict COVID-19 restrictions, many expats have left China. 

Adapting to this new reality, companies should consider the following:  

• Target local talents: experienced local executives with a specific and deep understanding of new markets can help drive business expansion.  
• Re-evaluate key characteristics and skills: should you be looking for a heightened aptitude for tech, empathy, agility? Consider what traits can best help your business thrive amid continued economic uncertainty. 
• Take a long-term view: candidates have become increasingly reluctant to relocate. Companies with the resources to invest should seize the opportunity to secure executive talent for the future, amid increased competition. 
• Remote interviews: improved communication technologies, new online assessment tools and localised partners are your best assets to hire executive talents, and overcome the lack of face-to-face meetings amid the on-going travel restrictions. 

Staying Compliant 

Keeping up with rapidly changing compliance regulations is a challenge, and even more so for manufacturing entities. Many clients are reporting compliance issues surrounding: 

• Limited visibility and control over bookkeeping practices.
• Suspicious business transactions with lack of supporting information. 
• Low Corporate Social Credit score involving key business areas. 
• Internal complaints or whistle-blowers. 
• Continuous losses with high operating costs. 

The Fiducia Corporate Health Check  

Through our audit investigations, we help clients to identify compliance risks and substantial cost savings, focusing on five key business areas:  

• Corporate set-up: investment structure, corporate functions and shareholders, license usage, company chop management process.
• Financials: review of cost structure and operational expenses, revenue cycle and cash flow management, tax payments, credit checks.
• Process and operations: standard operating procedures, internal control for fraud detection, inventory stock count.
• Contracts and HR: validity and enforceability of contracts, compliance of labour contracts, dispute resolution methods, staff background checks, payroll IIT, social insurance contributions.
• China’s Corporate Social Credit System: maintain a high score across all criteria and towards your business partners.

3. Client Success Stories   

Case Study 1: Stock Taking for Electronics Manufacturer

After our client’s HQ noticed discrepancies in its China inventory, Fiducia performed a Health Check at their South China warehouse. We discovered a large amount of obsolete inventory and generally poor stock taking habits by the local team.

After a thorough clean-up, the Client divided their assets, separated the outdated stock, and was able to report the real value of the inventory back to the HQ. 

Case Study 2: Medical Devices Production Localisation

A leading global manufacturer of medical inhalers engaged Fiducia to evaluate the feasibility of production localisation.

Step 1 – Market voice: our team performed an in-depth market investigation of the local products in tenders. We also conducted an impact analysis of related government policies and regulations. 

Step 2 – Entry options: we presented a route to market evaluation complemented by case studies as well as a summary of any IP / technology infringement issues among international / joint venture competitors in China and possible solutions. 

Step 3 – Risk assessment: outlined potential risks and corresponding risk management measures for each entry option. 

Outcome: The Client opted for a joint venture with its distribution partner and engaged Fiducia to support the joint venture negotiations.