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ARE THERE RISKS INVOLVED WITH EXPORTING?
Risk Management and Exporting
Is exporting risky business? The simple answer is ‘yes’. There are many traps for new exporters.. These risks relate to local laws and regulations, credit, political, legal, freight and logistics, Intellectual property protection, business and cultural risks.
When exporting, you still need to plan. Many exporters believe that, because they have a successful Australian business and have exported to other countries, they can simply transfer this knowledge to China. China Blueprint, works with Australian exporters to identify and better understand their target Chinese market and develop a strategy for entry that supports the entire process. We give exporters tools to manage associated risks.
Think about some of these risks:
Credit Risk: How do you assess whether a buyer is genuine, or even creditworthy? How do you seek payments should non-payment occur?
Laws & Regulations: Do you know the local Chinese regulations regarding restricted imports, packaging, quality and labeling? Does your buyer know the regulations? Are they licensed to import your goods? Do they have experience in this range?
Legals & Contracts: What legal infrastructure is in place, or can be put in place, to protect you in a dispute? What Intellectual Property measures can you put in place to manage the potential for copyright or patent infringement?
Political: Is China politically stable? Will wage increase demands, or economic downturn, directly impact you?
Freight & Logistics: What is the risk of freight damage or theft? Will insurance cover you for this?
Communication & Business Practice: Are there differences in China’s tax system, currency control, and business communications and practices? Who can tell you how this can impact your export project?
If you are facing a China challenge or wish to start a new China based project, then speak with one of our expert consultants to find out how we can help you.
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