have a - Jeni Carmichael

中國
China
By Jeni Carmichael
1
Introduction
The purpose of this report is to give details about
china that you should know when doing business
with them. Knowing the chinese culture and business ettiqutte will not only help you do business with
the country but it will aslo help you decide if China is the best place to source knit products. Using
these guidelines, should allow a smooth transaction
between the american and chinese companies.
through examination of china, trade agreements,
labor laws, sourcing guidelines, culture traits and
business ettiqutte, it should be clear that there are
not only risks but many benefits in doing business
with china. Through economic exploration, doing
business with china will open possibilities of high
quality goods at low prices.
2
Table of Contents
COUNTRY OVERVIEW- Page 4
Socio-Economic Political Climate- Page 5
Labor Laws- Page 10
State of the Textile and Apparel Industry- Page 12
Textile and Apparel Associations- Page 13
Trade Agreements- Page 14
Laws of the U.S- Page 19
Business Etiquette-Page 20
Type of Culture- Page 21
Negotiation and strategies- Page 21
Relationship Building- Page 22
Social and Cultural elements Page 23
Dining- Page 29
Global sourcing overview- Page 31
Sourcing guidelines- Page 32
Potential Manufacturers- Page 36
Costing- Page 39
Import Classification- Page 40
Logistics and importation- Page 41
Freight- Page 42
Standards, Regulations and Laws- Page 46
China import and Export Documentation- Page 49
Conclusion- Page 55
Appendix- Page 56
Country traits- Page 57
Art- Page 63
Dining and Cuis
Monuments and Sight Seeing- Page 65
Dining and Cuisine- Page 82
Fiscal Policies-Page 84
Economy- Page 85
Geography-Page 87
Tech Pack-Page 88
Work Cited- Page 95
3
Business
overview
4
Socio-economic-political climate
Social Climate:
The Chinese President, Xi Jinping, is chasing after the Chinese dream. This ranges
from the rights to education to a clean environment, to individual happiness which
all leads to a middle class. China wants to be a rich, strong and prosperous nation,
however the majority of citizens must have entered the middle class. For this to happen the annual general income must be three times the average GDP and higher.
The annual income must be of U.S$ 18,000. Once they achieve this income they will
be at the living standard similar to a lower class in the U.S. Majority of this group will
be urban residents with a stable and high-income job, and those who have at least a
high school education. They will have money to spend on food, clothing and housing
while having some disposable income, which will be used for consumption.
China has about 250 million people that can be classified as middle class, which
is only about 18.5% of the total population. Although this status has begun to take
shape it remains low in relative proportion. With higher income and consumption
levels, China will be guaranteed domestic demand. The middle class is a treasury of
human capital and provides a sense of security with more favorable conditions. The
middle class is the cornerstone of social stability. They own property and have some
social status and their social development will build political democracy.
Political:
The more then 80 million-member communist party of China continues to dominate
government. This central party control is tightest in central government offices and in
urban economic, industrial and cultural settings. The party’s highest body is the Party
Congress, which meets at least once every 5 years.
President: Xi Jinping
Vice President: Li Keqiang
State Council: Wen Jiabao
Chairmen of the NPS: Wu Bangguo
Chairmen of the Central Military
commission: Xi Jinping
The primary organs of state power are the National people’s Congress, the president
and the State council.
At the National People’s Congress Conference this past month, Xi Jinping was
elected to be the president of the People’s Republic of China. At the same time,
Peng Liyuan Xi’s wife became China’s first lady. This lady has become a symbol of a
more confident China.
5
Peng has been making headlines this week.
She has been a celebrity on Chinese television since
the 1980s. It is rare to have a first lady who looks like
a model and who is ranked as a major general. She
is also known for her championing social causes. Last
year the World Heath Organization named her as
“goodwill ambassador” in the fight against tuberculosis and HIV/AIDS. All of this went on while her husband, the president, met with Russia president. China’s history is littered with tales of women who were
allowed to become too close to the center power.
She is the real first lady.
China re-launched their market base in 1992 and
since has been transforming globally and domestically. The rebalancing of the economy towards
consumption could lead to an unstable economy.
Despite China’s phenomenal growth, their overall
level of development remains below median. China
has been facing debt since 2009 when the banks
unleashed a surge of loans to power the economy
during the global financial crisis. Beijing has spent
over three years trying to manage these problems
by raising mortgage down payments and barring
people from purchasing second homes. China’s
banks are feeding unwanted assests into the country’s “shadow banking system” which reflects just a
portion of the actual credit risk lurking in the financial
system. We are unsure of how many more risky loans
have been shifted. Although Chinese authorities
are aware of what they’re going through, China’s
growth model needs to change. If the expected
growth falls from over 10 to 6 percent the needed
Source: ibtimes.co.uk
rate of investment will collapse. A big jump in credit
has swelled because of real estate and other investments failing. China’s government is in trouble with
an annual growth rate of below eight percent. The
Chinese Communist Party said they would supply
growth in return for political quiescence. The end of
high growth would imply that this social contract is in
trouble.
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Economic Climate
China has always been referred to as a nation that only made knock-off products. This involves laborers who work long hours and receive little pay and very lowend manufacturing. It is now becoming more difficult to find shoes or textile products
that are made in China. They are now made in Vietnam, Pakistan or India. China’s labor cost is rising in the areas where most of China’s exporting companies are located.
The laborers’ wages have gone up at 12 percent each year from 2002 to 2009. Some
believe that higher wages in China will benefit the other countries because they can
provide cheaper labor compared to China. With a population of 1.3 billion people, a
richer China is in the future. In 2012, the National Bureau of statistics in China suggested that over 50 percent of China’s growth during the first three quarters of 2011 was
fueled by consumption, rather then investment. The significance of a more confident
China is not just about new space ships or the outgoing first lady. Their economic performances are outstanding and the Chinese people are becoming more open to the
rest of the world. A more confident China will bring the rest of the world more opportunities to explore and learn about its culture and politics.
China operates as a market economy which means that there goods are produced through free markets. They have emerged to the lead exporter in the world
with the second largest economy.
Although China is currently booming and the world is excited about their
growth, the Chinese government has two reasons for the possible decline of the
economy. China has fallen in the middle-income trap, which aborts industrialization
and occurs when the economy begins to catch up with advanced economies. This
happened in Japan and South Korea not too long ago. Here are the two reasons
they believe this. “First, the potential for infrastructure investment has “contracted
conspicuously”, with its share in fixed asset investment down from 30 per cent to 20
per cent over the past decade. Second, returns on assets have fallen and overcapacity has soared. The “incremental capital output ratio” - a measure of the growth
generated by a given level of investment - reached 4.6 in 2011, the highest since
1992.” (Wolf) China is getting less growth from its investment. Another reason it may
fall is because urbanization is still rising but at a decelerating rate.
Beijing has made it clear that it’s more then willing to accept short-term costs of
a growth sacrifice to keep its development strategy on track. It is the world’s second
largest economy and is transforming from and exports and investment led economic growth to consumption-driven growth. Foreign industrial companies are rethinking
their China strategies, the Wall Street Journal Reports. China’s economy has grown
7.8 percent in 2012 from a year earlier. This is rather slow in comparison to previous
years. Their GDP declined from more then 50 percent to 46 percent last year. (Zhang)
As the investment-led economy slows in China, foreign companies are finding it hard
to make profits off of big projects. China is expected to surpass Japan as the world’s
largest luxury goods market and by 2016 to overtake the U.S to become the world’s
largest retail market, according to the Economist Intelligence Unit.
7
8
Source: Strangeloopnetworks.com
9
Labor Laws
The Chinese Labor Law covers workers’ rights, labor contracts, collective
contracts, hiring and firing, wages and salaries, working hours and overtime, rest
and vacations, labor disputes, trade unions, labor administration and social insurance. It sets the legal requirements for labor contracts for all aspects of Labor. It
also sets labor standards including the eight-hour workday and forty-hour workweek. Many factories cannot meet these standards. Although there are many
laws, there are a few that are more important than the rest. According to Article
12 of the PRC Labor Law, Laborers should not be discriminated against regardless
of their age, ethnic community, sex or beliefs. This law provides that an employer cannot discriminate, especially not against women unless the type of work is
unsuitable for women. The written policy of the government encourages employment of disabled persons, minorities and military personnel. According to Article
15, No employing units shall be allowed to recruit juveniles under the age of 16.
This law prohibits employment of persons under the age of 16 years. Under age
works between the ages of 16 and 18 cannot work underground in mining or with
harmful substances. The employer must arrange regular medical examinations of
under-age workers. According to Articles 36 and 38, The Chinese must follow the
law that provides a five day, forty hour work-week unless extended hours are arranged prior to consultation with a trade union and employees. Under this condition, overtime pay is provided. According to Article 51, the employment unit shall
pay wages to laborers who observe statutory holidays, take leaves during periods
of marriage or funeral and participate in social activities. 11 days of official national holiday cannot be deducted in calculation of daily wage rates. According
to Article 52, the employing unit must perfect the system for occupational safety
and health. They must take specific measures to guard against workplace accidents. They must provide goggles, work clothes, head coverings and any other items to protect them. When workers are exposed to hazardous substances,
the employer is required to provide regular medical examinations at company
expense. A worker has the right to refuse to engage in any task they consider
unsafe. According to Article 73, laborers shall, in accordance with the law, enjoy
social insurance benefits under the following circumstances, Retirement, Illness
or Injury, Disability caused by work-related injury, unemployment and Child-bearing. The social insurance that laborers are entitled must be paid timely and in full.
China has over 795.5 million people working in the labor force. Labor has been
broken into three sectors of employment; Agricultural, industry and services.
Agricultural jobs are 36.7%, industry is 28.7% and service is 34.6%. China has many
natural resources which aid to the economy. They are the top country for use of
coal and coal is used to run most of the electrical power in the country.
10
Source: Secretasiancomic.com
11
State of the
Textile & Apparel industry
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China’s garment industry is one of the industries in China that has the most international competition and the fastest growing. There are more then 100,000 garment
manufacturers that employ over 10 million people. In 2012, China made altogether
43.6 billion pieces of garments with export value 1.5 billion. Since China’s reform, the
garment industry has achieved significant development because of the fast growth
in the national economy and domestic demands. They are making progress within
their structure, technology, brand development, quality control and exploration in
the international markets. The garment industry is mainly located in Pearl River Delta
and southeast coastal areas. With years of experience in production management,
this industry secures its front ranking in the world market. The garment industry in China
is undergoing a new wave of upgrading changing their growth patterns and deepening collaboration and innovation within the industrial network. China must find its
new position in the global economy, create a new competitive edge in international
cooperation and competition and continue to innovate.
The garment industry is primarily located in five provinces; Shandong, Jiangsu,
Zhejiang, Fujian and Guandong. Most of them are located near a river for east export process. One of the industrial towns along the Pearl River Delta is called Xintang
which is considered the Famous China town of Denim and Garments. They have over
3,900 textile and garment operations. China’s textile and apparel industry is preparing for new government demands
to introduce sustainable production in the sector warning that companies failing to
comply will close. China’s textile business, which has been criticized by environmentalists over pollution, waste and carbon emissions, is working hard to achieve the
plan’s Circular Economy goals. They want to promote water conservation, energy
efficiency, new bio-based fibers, and producing recycled fibers. China generates
around 20 million tons of wasted fabrics annually. If just 60% of these were recycled,
4.7 million tons of naturals fibers and 9.4 million tons of chemical fibers would be
saved. The textile industry energy consumption should drop 20% by 2015 and 30% in
water consumption. Chinese currently recycle very little, wasting many fibers such as
wool, silk and cotton.
It will take a significant investment to move forward with the Circular Economy
plan. Luthai has invested about 2.3 million dollars to install technology and equipment
designed to conserve power as well as water, reduce carbon and enable waste heat
recovery.
Chinese textile and garment companies need to be more innovative in design.
The country is facing competition from Asian neighbors with lower labor costs such
as India and Cambodia. The old Chinese business model focused on manufacturing and ignored design and brand building, but that no longer works. China saw its
slowest growth in the garment industry in 2012. Their sales volume only increased by
2% year to year and their profits have also been dropping. The Chinese garment saw
weak international demand with the price gap between domestic and foreign cotton, and rising costs. They believe that they will face a better environment in 2013 with
new technology and designs being introduced.
Textile and Apparel Associations
China National Textile and Apparel Council
CNTEX is the leading provider of marketing services in Chinese Textile and Apparel Industry. They provide overall marketing plans for international enterprises entering the
Chinese textile and apparel market. It was set up by the Chinese National textile council
in 1997. It has become the most influential media and resource center of China apparel industry. The major objectives of CNTEX are to enable the Chinese national policy of
reform, implement regulations and policies, to promote the production of textile products and the continuous growth of domestic and international trade in the developing
economy. They also want to enhance economic strength of its members, expand influence of CNTEX throughout society and protect legal rights of its members. It is lead by
the president and the CEO is Mr. Qian Jin. It offers its members commercial partnerships
service, which is truly customized to the needs of the international company.
The CNGA, China National Garment Association, was founded in 1991 as a nationwide
organization of China’s garment industry. With an aim for fostering a sustainable garment industry, it provides services related to the industry. It has over 1,200 members,
which include China’s outstanding original garment brands. It provides services for tens
of thousands of enterprises and plays an active role in terms of technology development. It is comprised of 8 departments as well as eight committees in eight subsectors.
Some of the major activities of China National Garment Association include China International Clothing & Accessories Fair, China National garment Association Awards, China
Fashion Forum, China National Apparel Conference, and Joint Convention of China
Apparel Distributors and Retailers among others.
The China National Textile and Apparel Council is a national non-profit organization of all textile related industries. It is formed on a volunteer basis to set guidelines and
rules overlooking the performance of the industry. In 1997 the CNTA worked with the
Textile information center to provide necessary information in the textile industr in hopes
to promote production and growth of the industry.
The responsible supply Chain Association is another organization that is comprised
of buyers and other organizations voluntarily to promote social compliance and socail
responsibility within the industry. They created a code of conduct and help the Chinese
companies train their employees on the regulatons.
Sourced: Qingdaotex.com
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Trade
Agreements
and Laws
Chinese government deems Free Trade Agreements
to further open up to the outside of domestic reforms.
They do this as an effective approach to integrate into
global economy and strengthen economic cooperation with other economies. Currently China has 14
Free Trade Agreement partners that comprises of 21
economies, among which 8 agreements have been
already signed. (China’s Free Trade Agreements)
China-ASEAN FTA
In November 2001, ASEAN and China agreed to
launch negotiations for a FTA. They wanted to
strengthen and enhance their economic, trade, and
investment co-operation between the two countries. They continue to liberalize and promote trade in
goods and services as well as create transparency.
They want to explore new areas and facilitate the
more effective economic integration. This agreement
was signed in July 2004 and entered force in July 2007.
Under this agreement, services in the region will enjoy
improved market access. This FTA has opened major
opportunities fro ASEAN and Chinese exporters and
will further strengthen the trade links between the two
parties. The 6 ASEAN countries and China will eliminate tariffs on 90% of their products. There are now
sectors where companies can get preferential access
to the Chinese market, which includes chemicals,
electronics, and food and beverage. This provides
cheaper inputs for businesses on a range of products.
China-Pakistan FTA
They began their negotiations on free trade in April
2005. The two countries reached the FTA in November
2006. The agreement took effect in July 2007. The China-Pakistan FTA entered into force on Oct. 10th, 2009.
Under this FTA, the People’s Republic of China and
the Islamic Republic of Pakistan eliminated tariffs on
all export products in 2 phases. It also covers foreign
direct investment, including investment promotion,
expropriation, compensation for damages and losses
and dispute settlement. Both parties shall eliminate the
tariffs of no less than 90% of products, both in terms of
tariff lines and trade volumes.
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China-New Zealand FTA
The China-New Zealand Free Trade Agreement entered
into force on October 1st 2008. The negotiation process
took over three years. This is a treaty between the two
countries that enlightens and facilitates trade in goods
and services, improves the business environment and
promotes cooperation between the two countries. New
Zealand and China have entered into an agreement
that mutually benefits them both. By freeing the trade
in goods, they have removed the tariffs on 96% of the
goods and services. Their agreement contains rules to
determine which products qualify for tariff cuts. They
have reduced barriers to trade in services, which will
help New Zealand to conduct business in China. Some
of the services that it covers are tourism, education,
construction and transport. In order to improve the business environment and open up new opportunities they
offer measure relating to customs procedures, sanitary
procedures, technical barriers, and intellectual property.
They have also entered into a binding Environment Cooperation Agreement that will enhance communication
and cooperation on these issues and help raise work
standards as well and improve environmental protection in both countries.
China-Chile FTA
In November of 2005, Chinese president Hu Jintao and
former Chilean President Ricardo Lagos witnessed the
singing of the China-Chile Free Trade Agreement. This
agreement extends zero duty treatment by phase to
cover 97% of products in ten-year time. The two countries will further strengthen such areas as economy,
culture, education, science, technology and environmental protection. They both commit to strengthening
their bond and cooperation. They share the belief that
this agreement will provide mutual benefits to each
party and contribute expansion of world trade. They are
building their respective rights and obligations under the
World Trade Organization. They are committed to providing welfare with each of their countries. The point of
this FTA is to encourage expansion and diversification,
eliminate barriers to trade in, promote conditions of
fair competition in the free trade area and establish a
framework for further bilateral, regional, and multilateral
cooperation.
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China-Peru FTA
On April 28, 2009, the Chinese and Peruvian Governments signed a free trade agreement. IN the
presence of Chinese Vice President, Xi Jinping
and Peruvian Vice President Luis Giampietri Rojas,
they established their first comprehensive FTA that
China has signed with a Latin American country.
It is now a landmark in their bilateral relations. This
will strengthen their friendship and deepen economic and trade cooperation. It demonstrates
the commitment of the two parties by opening
up and fighting protectionism.The primary items
that China exports to Peru are mechanical and
electronic products, new technology, textiles and
garments. Chinas imports from Peru are mainly
fish, flour, and mineral products. China has faced
long unfavorable balance of trade with Peru.
China-Singapore FTA
The China-Singapore FTA was signed after eight
rounds of negotiations held over 2 years. The
negotiations concluded on September 3rd, 2008.
It was signed between the Singapore Minister
for Trade and Industry, Lim Hng Kiang and PRC
minister for Commerce Chen Deming. This is
the first comprehensive bilateral FTA that China
has singed with another Asian country. It covers
trades in goods, services, and rules of origin, trade
remedies, sanitary measures, and customs procedures among others. This CSFTA enhances Singapore companies’ access to the Chinese market,
and will boost their bilateral trade and investment
relations. Building on Trade in Goods will provide
for accelerated tariff concessions that will enhance the competitiveness of Singapore goods
into China. It will provide preferential coverage
for about 95% of Singapore’s exports to China.
More than 85% of Singapore’s exports to China
will be at zero-tariff starting in 2009. Both Countries
have agreed to simplify their customs to allow
good trade. They have agreed to strengthen their
competitive position in the Chinese market. The
products must be wholly obtained; if they are not
wholly obtained or produced in the territory then
the products are eligible under regional value
content and product specific rules.
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China-Costa Rica FTA
Costa Rica is China’s second largest
trading partner in Central America while
China is the second largest trading partner of Costa Rica as well. The bilateral
trade between these two countries is
growing rapidly. In November 2008, Chinese President Hu Jinatao announced
the launch of their FTA. The trade barriers
on multiple Chinese products were lifted. Over 90% of goods between China
and Costa Rica will enjoy zero tariffs on
a stage-by-stage basis. For China, this
covers products from textile industry,
light industry, machinery, electronics,
vegetables and fruits. For Costa Rica, this
covers Jam, fish powder, frozen orange
juice, construction, beef, pork, and many
others. The negotiations last over a year
but it showed a lot of determination in
strengthening cooperation and joining
efforts for mutual benefits.
Mainland and Hong Kong closer economic and partnership Arrangement
Mainland China and Hong Kong created an economic partnership arrangement to promote their prosperity and
development of the Mainland. They did
this to strengthen trade and investment
cooperation by reducing or eliminating
tariff and non-tariff barriers. They also are
working on elimination of substantially all
discriminatory measures. They want to
achieve reciprocity and mutual benefits with each other’s advantages. Hong
Kong will continue to apply zero tariffs to
all imported goods of Mainland origin. No
later then January 1st 2006 did the Mainland apply the zero tariffs to the import of
goods of Hong Kong.
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Mainland and Macau
The Mainland and Macau closer economic
partnership arrangement (CEPA) was signed on
October 17, 2003. It aims to strengthen economic and trade cooperation between Mainland
China and Macau Region. This provides a mechanism to extend its scope of liberalization. The
two parties have signed eight supplements to
the text of CEPA. This covers three areas: trade
in goods; trade in services and trade and investment facilitation. Goods exported to the Mainland must fulfill the rules of origin in order to enjoy
the zero tariff treatment. Goods that are wholly
produced in Macao can be claimed as Macao
origin. For goods that are not wholly obtained in
Macao, a lot of information must be looked at in
order for it to be qualified as “made in Macao.”
There are 48 different service sectors that are
qualified for the preferential treatment as “Macao Service Suppliers.” Some of these services
include, Medical and dental, Advertising, Accounting, Public Utility, Printing, Environmental,
Social, Banking, Distribution, and Market Research. Macao service suppliers have an earlier
access to the Mainland Market. The Mainland
and Macao will pursue trade and investment facilitation through great transparency standards.
They will promote co-operation in areas such as
customs clearance, electronic business, industrial co-operation and protection of intellectual
property rights.
Laws of the U.S that affect the importation of
Knitwear:
The regulations for importing textiles include consumer product safety commission requirements
for flammability. The apparel must have labels
specifying content and instructions for care. All
textiles must have labels inicating the country of
origin and be packaged such a way that country of origin is discernable to the purchaser. The
country of origin must be determined for mix
products which can be very complicated.
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Laws of the U.S that affect the
importation of knit cotton sweaers:
United States IMPORT REQUIREMENTS
An individual may make his own customs clearance of goods imported for personal use
or business.
The U.S. Customs Service does not require an importer to have a license or permit. Other
agencies may require a permit, license, or other certification, depending on the commodity.
All merchandise coming into the United States must clear customs and is subject to a
customs duty unless specifically exempted from this duty by law. Clearance involves a
number of steps--entry, inspection, appraisal, classification, liquidation.
Customs duties are, generally, an ad valorem rate (a percentage) which is applied to the
dutiable value of the imported goods. Some articles, however, are dutiable at a specific
rate of duty (so much per piece, liter, kilo, etc.); others at a compound rate of duty (combination of both ad valorem and specific rates).
The dutiable value of merchandise is determined by Customs. Several appraisal methods are used to arrive at this value. Generally, the transaction value of the merchandise
serves as the basis of appraisement. Transaction value is the price the buyer actually pays
the seller for the goods being imported.
The Harmonized Tariff Schedule of the United States (HTSUS), issued by the International
Trade Commission, prescribes the rates of duty and classification of merchandise by type
of product; e.g., animal and vegetable products, textile fibers and textile products.
The tariff schedule provides several rates of duty for each item: “general” rates for
most-favored nations; “special” rates for special trade programs (free, or lower than the
rates currently accorded most-favored nations); and “column 2” rates for imports not
eligible for either general or special rates.
Processing fees may also apply.
19
Business
overview
20
Business Etiqutte:
Culture: China is a masculine society and its dimensions indicate that the society is
driven by competition, achievement and success. This value system starts in schools
and continues throughout life. Many Chinese will sacrifice family and leisure time for
work. The migrated farmer workers leave their families and move to faraway places
to obtain better work and pay in the cities. Chinese students care very highely about
their exam scores because this is main criteria to achieve success.
Negotiation Styles & Strategies:
Once you have met your colleagues and are ready to negotiate, remember
that only senior members of the negotiating team will speak. These business negotiations will occur at a very slow pace and you must be prepared for the agenda
to jump off point for other discussions. Chinese are non-confrontational and will not
directly say no. Chinese negotiations help the Chinese determine if relationships can
develop to a stage where it is comfortable to do business. Under no circumstances should you lose your temper or it will damage your relationship. Also, do not use
high-pressure tactics, because decisions are unlikely to be made during the meeting
you attend. Your starting price should leave room for negotiation because the Chinese are clever negotiators.
When meeting someone for business in China, appointments are necessary
and, if possible should be scheduled at least a month in advance. If you don not
have a contact within the company, you must use an intermediary to arrange a
formal introduction. Once this introduction has been made you can provide information about your company, and what you want to accomplish at the meeting
to the other company. You should always arrive to your meetings on time or slightly
early because Chinese view punctuality as a virtue. (Kwintessential) Arriving late is
considered an insult and could negatively affect your relationship. Send an agenda before the meeting so your Chinese colleagues have the chance to meet with
experts prior to the meeting. Also if you have a translator discusses the agenda with
them as well prior to submitting it. Each Chinese participant will take an opportunity
to share his or her knowledge for long lengths of time without really saying much of
anything that actually contributes to the meeting. Be patient and listen because
they could be transmitting a message that can assist you. Meetings require patience
and if mobile phones ring, allow it because the Chinese people don’t turn off their
mobile phones. Guests are generally escorted to their seats, which descend in order
of rank. The senior people sit opposite the other senior people. It is really important
that you bring your own interpreter, especially if you plan to discuss legal or technical concepts. All of your written material should be available in both languages and
simplifies. Make sure the translations are correct and can’t be misinterpreted. Visual
aids are useful in large meetings and should only be done with black type on white
background. Colors in china all have special meetings and your color choice could
work against you. Presentations should be detailed and focus on long-term benefits.
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Relationship Building:
The Chinese don’t like doing business with companies they don’t know, so
getting to know them through an intermediary is crucial. This person should formally
introduce and vouch for your company. Before arriving in China, send materials written in Chinese that describe your company beginning with history and everything
about your product and services. Business relationships are built formally after they
get to know you. Be very patient it takes a lot of time. The Chinese see foreigners as
representatives of their company rather than as individuals. China runs on a ranking
system so it is important to keep the rank differences in mind. Make sure you understand their rank so that you don’t treat them informally. The Chinese prefer face-toface meetings rather then video or telephone. Meals and social events are no the
place for business. There is a difference between socializing and business in China
and they don’t mix the two.
What to wear:
Business attire is always conservative and unpretentious. Men should wear
dark color; conservative business suits while women should wear conservative business suits or dresses with high necklines. Women should also wear flat shoes with very
low heels. All bright colors should be avoided because colors have meaning.
Meeting Etiquette:
China is a collective society so they prefer to do business in a group setting.
An intermediary can help with this proces of introductions. Chinese don’t like doing
business with people that they do not know so relationships are important. Greetings
are formal and the oldest person always gets greeted first. Chinese people use the
handshake as the most common form of greeting and they will often look at the
ground when greeting someone. Always address the person by their title and their
surname. If they want you on a first name basis they will advise you when to use it.
They have a terrific sense of humor and can laugh at themselves most readily if they
are comfortable. Be ready to laugh. Once the connection is made, materials that
inform them about your company should be translated into Chinese.
Arriving early is customary in China. Arriving late is disrespectful and shows a
lack of commitment to both parties. When entering a meeting area you will be directed to a specific seat. This allows members to sit opposite one another surrounded by other team members. Chinese will always answer their phones during meetings.
22
source: china-consult.com.au
Business card
Business cards are exchanged only after the initial introduction. In China, business
cards are highly respected as a step forward in a relationshio. The card represents
the person so never write on it or put it in the back pocket. Always use your personal title on your card as well as gold writing because it symbolizes wealth. Gold is an
auspicious color. Your business card should be simple and include your title. Hold
the card with both hands when offering it with the Chinese side facing the recipient.
Gestures
When entering the place of business it is not uncommon to be greeted by a round
of applause and you should always applaud back. During a presentation you
should not use hand gestures because it is seen as distracting. To summon the
attention of another person, the palm of your hand should face down while waving your fingers towards yourself. Pointing with an index finger is rude and reserved
for animals. Avoid winking and whistling. If you want to express something posotive, give a thumbs up sign or raise your pinky. Chinese strive for harmony and rely
on facial expression, tone of voice and posture to tell them how someone feels.
Frowning while someone is speaking is a sign of disagreement. It is considered disrespectful to stare into another person’s eyes so you should avoid eye contact to
give them privacy. They like close personal space and are very patient.
source: asiaqualityfocus.com
23
Colors
Black-color for young boys- flowing, dormant, conserving, immortality, stability, knowledge, trust, adaptability, power, career
Blue- Conserving, healing, relaxing, exploration, trust, calmness, immortality
Brown-Industrious, grounded
Gold-Completeness, wealth, metal, God, Consciousness
Green-Growing, generating, sprouting, striving, refreshing, balancing, calming, healing, self assurance, foundation, benevolence, health, harmony, sensitivity, patience
Grey- Dull, Indefinite, hence income
Orange-Indicating change, adaptability, strengthens concentration
Pink- Love
Purple- Spiritual awareness, physical and mental healing, abundance, red purple
brings luck and fame, North star
Red- bridal color, expansive, blooming, dynamic, enthusiastic, reaching upwards,
good luck, celebration, happiness, joy, long life, money recognition
Silver, metal (income, wealth) romance, trust
White- mourning, contracting, withering, righteousness, pureness, confidence, intuition, death, spirits, ghosts
Yellow- nourishing, supporting, stabilizing, ripening, grounded, solid, warmth
Today, yellow is still reserved for royalty. Clothing and objects that are yellow resemble a higher social status and yellow is reserved for the emperor himself. Red is still
used for happiness and joy. After the Ming Dynasty, only the Emperor’s close relatives
could have homes with red walls and yellow roof tiles.
Blue-green is a symbol of spring when everything is filled with vitality. White is a symbol
for the unknown purity, the color white is used for mourning, death and ghosts. Black
is used as the symbol of winter and westerly skies that beholds the heavens.
24
Number Meanings:
0-Simply means nothing
1-Individual, Aggressor, “The Yang which is the other balance of Yin”
2-Stability or Balance means union or receptive. The Yang
3-Means talking and understanding—Communication
4-Creation, death
5-Action or Restlessness
6-Fluidity Responsibility, Reaction
7-Mind Consciousness and thoughts
8-Sacrafice, Work Hard, power and infinite, no beginning, no ending, continuous
9-Highest level of Change
10- Being born again or Rebirth
Numerology is a system of traditions, culture and beliefs. The relationship of numbers and living things is like relationship of astrology. Even numbers are preferred
but not the number four. Four is the most dreaded number-it means death. For
odd numbers, seven implies anger and abandon, it is both an unlucky and lucky
number. Nine is the luckiest number because it means eternity. Thirteen is also
an unlucky number to Chinese people so they don’t usually have a thirteenth or
fourteenth floor in any buildings. They usually begin a new business on the 8th day.
Number 8 is lucky for business as it brings unending money.
On Valentines day the number of flowers given to someone has a meaning. One
flower means you are my love, two means we are together, three means “I Love
You.”
The Olympics in Beijing kicked off in August 8, 2008 at 8 pm, 8 minutes and 8 seconds after 8 pm. A Chinese man offered to sell his license plate number –A88888 for
$164,000.
source: rupj.net
25
Gift Giving
In China, gift giving takes place at Chinese New Year, Weddings, Birth and
more recently Birthdays. The Chinese like food and a nice food basket. Never give
scissors, knives, or other cutting utensils as they indicate the severing of the relationship. No one can give clocks, handkerchiefs or straw sandals as they are associated
with funerals and death. Never give flowers because they are associated with funerals. Do not wrap gifts in white, blue or black paper. Because four is an unlucky number, never give anything in groups of four. Gifts are always given with two hands. Gifts
may be refused three times before they are accepted.
Joke Telling
Avoid telling Western-style jokes, because jokes sometimes do not translate across
cultures and can cause confusion or hurt feelings.
Social EventsAt a formal banquet, be prepared to give a short, friendly speech. When you are
invited for dinner, it is polite to sample every dish served. Your host may serve some
food for you and it is nice to reciprocate if you feel comfortable doing so. Always
leave something on your plate at the end of the meal or your host might think that
you are still hungry.
Good topics: Chinese scenery, landmarks, weather, climate, travels, all About
CHINA
Topics to Avoid: Politics, Taiwan, Don’t praise the Japanese or Shanghai
Business Entertaining:
Chinese business entertainment most often involves banquets or some kind of dining in a restaurant or hotel. However, they do not talk business at meals. They also
often invite business partners to watch Karaoke TV and get massages after dinner.
26
Superstitions:
(1) If one hits another person with a broom, the hitter will get bad luck and he will ruin
his life.
(2) The Chinese believe that one should keep a well-shaven face. If one wears a moustache it should be well-trimmed. If one violates this norm it will give bad luck.
(3) Another Chinese superstition is that if a dog howls for a few hours in late night, it
means someone died somewhere.
(4) It is another superstitious belief of the Chinese that if one has a dream of teeth or
snow, it indicates that his parents are dead.
(5) If a baby cries for no reason, the Chinese believe that there are ghosts around and
the child is disturbed by the ghosts.
(6) Another superstition of the Chinese is that building a house facing the North would
bring in ruin to the family.
(7) It is a superstition among the Chinese that if one marries a person who is either
three or six years older or younger is bad and it will bring bad luck to the couples.
(8) The Chinese believe that clipping toe-nails or finger-nails at night would bring
ghosts to that place.
(9) Another popular Chinese superstition is that if one points at the moon with one’s
finger it will make one’s ear tips fall off.
(10) Another popular belief of the Chinese is that if one encages and keeps a turtle as
a pet, it will ruin his business and fortune. for it will slow a person’s business down.
(11) This is another popular superstition in China. The Chinese believe that the number
8 is a lucky number because the pronunciation of the number ‘eight’ and the pronunciation of the word for ‘prosperity’ in Chinese are similar. Hence, the number 8 has
much value in the social life in China. So if a house number or the registration number
of a car has the 8 as a number, people think it is a lucky sign. Often people pay big
sum to win a number with 8 for their car.
27
(12) In another popular Chinese superstition, the number 4 is considered as unlucky.
Hence this number is unacceptable for vehicles and houses. It is so because the number 4 in Chinese has the pronunciation similar to the word for the word ‘death’. There
are no number 4’s in the elevator.
(13) The Chinese believe that the numbers 8, 18, 13 and 168 are lucky. Hence those
who are on a gambling or business trip prefer these rooms. Ass these numbers are in
great demand, often disputes and fights arise over the choice over these numbers.
(14) In another popular Chinese superstition, the Chinese do not sweep during the
New Years because if one does so he will sweep away all the good fortune. Hence the
sweeping on the New Year is to be done the day previous.
(15) As part of another popular superstition of the Chinese people, eating noodle will
not be easy in China. This is because the popular belief is that an uncut noodle in soup
will increase longevity. If the noodle is cut it will cut the longevity. Some times people
may chock if the noodle is too long.
28
source:travelblog.org
Dining Etiquette
The Chinese prefer to entertain in public places rather than in their homes. When you
are invited to their house, consider it a great honor. If you must turn down, it is considered polite to explain the conflict in your schedule. Always arrive on time and remove
your shoes before entering the house. Bring a small gift to the hostess and eat well to
show that you are enjoying the food.
Table MannersYou should learn to use chopsticks, but it is not mandatory. Wait to be told where to
sit because the guest of honor will be given a seat facing the door. The host begins to
eat first and you should always try everything that is offered to you. Always be observant of other people’s needs. The chopsticks should be returned to the chopstick reast
after every few bites or when talking or drinking. Never put bones in your bowl, place
them on the table or in a special bowl. Hold the rice bowl close to your mouth while
eating so you don’t drop any. Do not be offended if a Chinese person makes a slurping or belching sound, it means that they are enjoying their food. You are allowed to
finish all of the food in your bowl.
Tipping EtiquetteTipping is becoming common, especially with the young workers. Most older workers
still consider it an insult. Leaving a few coins is usually sufficient.
Alcoholic Manners:
If you are a wimpy drinker, then never ask for even a sip of alcohol. There are rules for
drinking alcohol. The Chinese say, “the more you drink the deeper your friendship is,”
but never mention it when you are drinking with others. It is very common for many
people to propose a toast together, but you should not propose the toast to many at
a time unless you are a leader. When proposing a toast, if you are going to clink glasses, it is generous for the words “I will finish mine, you at will.” If no special guest is present you should clink glasses in clockwise order. Always keep a full glass or else people
will fill it up and make you drink it all.
Appropriate Conversation subjectsSome of the good topics for discussion in China include the difference between China and the West, and the advances the Chinese have made. They will be sure to ask
questions about your age, marital status, salary, and the price of personal items. Your
answers do not need to be detailed and avoiding answering will invite suspicion. Avoid
mentioning Taiwan and do not criticize Chinese leadership because they will take it
very personal. You should refer to the country as the “People’s Republic of China” or
simply China. When Chinese avoid a negative response, they say “We will do some
research and discuss it later.” At this time, pay close attention to facial expressions,
gestures and overall body language. In conversation, what has not been said can be
as important or more important than what has been said. Refrain from loud boisterous
speech and actions. Laughing loudly is not polite or suitable in China when you meet
someone. Try not to be too talkative, and be sure to take an interest in what your host
has to say.
29
source: inc.com
Rules:
1.Dress as Formal as your host
2. Bring bi-lingual business cards
3. Let your host seat you
4. let them order the food
5. Don’t talk business unless your host does
6. Chopsticks are not mandatory
7. Bring a gift
8.Toast Modestly
9.Don’t get drunk
10. Agree to be walked to the restroom
11. Chinese love to fight over the bill
12. If your host says “I’m the only one you can trust in China,” head for the door.
30
Global
Sourcing
Overview
31
Knitfit Co.
Sourcing Guidelines
I. Compliance with Laws
Manufacturers and suppliers who produce goods for Knitfit Co. shall operate in full
compliance with the laws of their respective countries and with all other appropriate
rules and regulations.
A.
The factory operates in full compliance with all applicable laws, rules and regulations including those related to labor, worker health and safety and then environment.
B.
The factory allows Knitfit Co. to access its facilities and all relevant records,
whether or not notice is provided in advance.
II. Environment
Factories shall comply with all applicable environmental laws and regulations. Factories are strongly encouraged to meet the standards outlined in Knitfit Co.’s statement
of environmental principles attached as a law.
A.
The factory has an environmental management system.
B.
The factory has an environmental emergency plan that includes notifying the
local community authorities incase of an emergency.
C.
The factory stores hazardous and combustible materials in secure ventilated
areas.
III. Employment Standards
The company’s employment standards set forth the company’s guiding principles that
factories must conduct business in a lawful, ethical and responsible manner.
Child Labor
A.
Factories shall employ only workers who meet the applicable minimum legal
age requirement or are at least 15 years of age.
1.
Every worker employed by the factory is at least 15 years of age and meets the
applicable minimum age
2.
The factory complies with all applicable child labor laws, including those related
to hiring, wages, hours worked, overtime and working conditions.
3.
The factory encourages and allows eligible workers to also attend classes and
participate in work study programs
4.
The factory maintains official documentation for every worker
32
Wages and benefits
A.
Factories shall pay wages and overtime premiums in compliance with all applicable laws. Workers shall be paid at least the legal minimum wage.
1.
Workers are paid at least the minimum legal wage or the local industry standard.
2.
The factory pays overtime and any incentive rates that meet all legal requirements
3.
The factory provides paid annual leave and holidays required by law that meet
the local industry standards
4.
For each pay period, the factory provides workers an understandable wage
statement which includes days worked, hours of overtime, and bonuses
Working Hours
A.
Factories shall set working hours in compliance with all applicable laws. While it is
understood that overtime is required in garment production.
1.
The factory complies with all applicable laws, regulations and industry standards
on working hours.
2.
Workers may refuse overtime without any threat of penalty, or punishment
3.
Workers shall have at least one day off in seven.
Forced Labor
A.
Factories shall not use any prison, indentured or forced labor.
1.
The factory does not use involuntary labor of any kind, including prison labor,
debt bondage or forced labor by governments.
Health and Safety
A.
Factories shall comply with all applicable laws and regulations regarding working conditions and shall provide workers with a safe and healthy environment.
1.
The factory complies with all applicable laws regarding working conditions
2.
Work surface lighting in production areas, such as sewing, knitting, pressing and
cutting
3.
Factory is ventilated
4.
There are sufficient clearly marked exits
5.
Aisles, exits and stairwells are kept clear at all times of work in process
6.
Doors and other exits are kept accessible and unlocked during all working hours
for orderly evacuations
7.
Fire extinguishers are appropriate to the types of possible fires in certain areas
8.
Fire alarms are on each floor with emergency lights
9.
Evacuation frills are conducted annually
10. Machinery is equipped with operational safety devices and serviced on a regular basis
11. The factory provides potable water for all workers
12. The factory places at least one well-stocked first aid kit on every factory floor
13. The factory maintains cleanliness throughout working hours
33
Nondiscrimination
A.
Factories shall employ workers on the basis of their ability to do the job, not the
basis of their personal characteristics or beliefs.
1.
The factory hires, employs, promotes, terminates and provides access to training workers without regard to race, color, gender, nationality, religion, age, maternity,
marital status, social origin, sexual orientation, disability, membership in workers’ organizations including unions.
2.
The factory pays workers wages and provides benefits without regard to race,
color, gender, nationality, religion, age, maternity, marital status, social origin, sexual
orientation, disability, membership in workers’ organizations including unions.
Human Treatment
A.
Factories shall treat workers with respect and dignity. Factories shall not use corporal punishment or any other form of physical harm.
1.
The factory does not engage in or permit physical acts to punish workers
2.
The factory does not engage in or permit psychological or any other form of
violence, harassment, or verbal abuse.
Collective Bargaining
A.
Workers are free to join associations of their own choosing. Factories shall not
interfere with workers who wish to lawfully and peacefully associate, organize or bargain collectively.
1.
Workers are free to choose whether or not to lawfully organize and join associations
2.
The factory does not threaten, penalize or restrict with workers lawful efforts to
join associations
Environmental Standards
A.
Must adhere to applicable local, national and international laws and regulations regarding the protection and preservation of the environment
Subcontracting
A.
Must not subcontract any portion of the manufacturing process without prior
written approval from Knitgit Co.
Monitoring and Compliance
A.
The right to conduct announced and unannounced inspections of all manufacturing facilities
1. requirements in this code are understood and implemented at every level and must
maintain all documentation necessary to demonstrate compliance with Knitfit Code
of Vendor Conduct.
34
Certification
Under the code of Conduct, Knitfit Co.’s Suppliers certify that they will conduct business sin compliance with the law, including, among other things, without child labor,
without forced labor, without corporal punishment, without discrimination, and in compliance with wage, safety, environment and hour regulations.
Verification
Knitfit Co maintains long- standing business relationships with suppliers who have been
vetted through an internal screening process. It shall be the responsibility of licensees
to ensure their compliance with the code.
Audits
The company uses qualified, accredited, third party, social compliance auditing firm
to conduct risk assessments and to audit manufacturing vendors which meet certain
risk-related criteria. Audits inspections can be announced or unannounced.
Internal Accountability Standards
When non-conformance with the Code of Conduct is identified, Knitifit Co. works with
the supplier to identify the cause and develop an action plan to assure future compliance.
35
Manufacturing and Production
Potential Manufacturers:
1. Suzhou Hengrun Import & Export Corp., Ltd
admin@hengrunchina.com
www.hengrunchina.com
Suzhou was founded in 2000. The former company specialized in textiles and was established in 1978. It was ranked 25th in the import and export turnover of the year 2005.
They mainly handle import and export of piece goods, garments, wool/cotton knitwear and home textiles. It has obtained comprehensive sales outlet in the world and
now owns it’s own brand A-CCO. The Corp branches in Hong Kong, Japan, Shanghai,
and Nanjining. They currently possess four factories that produce knitwear, woven
wear, silk wear and a garment designing and sample-making center. The Corp has
received awards in quality Management Authentication and holds an excellent reputation.
2.*Turbo Knit Factory Ltd.
www.blgroupintl.com
Customers: Dillards, LLBean, Victoria Secret, Abercrombie and Fitch, Nordstrom, White/
Black House
KBL is the premier Global supplier of Sweaters in the World. They have facilities in Hong,
Mexico, and China. Their technology offers 1500 of the most advanced machinery.
Some of their customers include Abercrombie & Fitch, Victorias Secret, L.L Bean, Dillards, Bebe, and Nordstrom. They produce Ladies 100% cotton knits.
3.Dragon Crowd Garment Inc.
Customers: Volcom, White wave Inc.DC shoes, Quicksilver
www.dragon-crowd.com
In 1976, Dragon Crowd Group became a supplier for SCHIESSER and their high quality
garments. They became a licensee in 1996. Dragon Crowd is always in pursuit of attaining excellence to provide the finest quality products and services. They specialize
in manufacturing all kinds of knitted apparels for ladies. They manufacture products
for Tommy Hilfiger and Bjorn Borg.
36
4. South Asia Knitting Fty, LTD
Customers: Sears, The Gap Inc. Banana Republic
www.southasiagroup.com
Leoyeung@southasiagroup.com
South Asia Textile has successfully established a world-renowned brand in knitwear-manufacturing. When the company was founded in 1963 its primary focus was
on the production of high quality knitwear. They have seen steady growth over the
years. Since 1980 Chairman Lu Sin has contributed to build over 150 school-buildings.
He has also donated more than HK$6 million, supporting education business in China.
The company has contributed 100,000 pieces of knitwear to people living in remote
countryside. Lu Sin donated the first Chang Ding High School.
5.Huzhou Worldbest Tianchang Imp. & Ex
Customers: Adrianna Papell Evenings Llc
Michael Zang-bizmz@yahoo.com.cn
helentcim@163.com
www.wbtc-textile.com
6. Shanghai Horizon Garment CO., Ltd.
Customers: Pickering International
www.horizoneco.com
Shanghai Horizon Garment Co., Ltd is China’s leader in porividing organic and eco-fiber textiles and apparel. They have been in production for over 9 years. They offer a
full range of knitted and woven textiles. They have a lot of apparel experience. They
are the premiere supplier of hemp, soybean and bamboo clothing from China. They
offer a minimum of 600 pieces per style.
7.Beijing Jinsanhuan Textile Import & Export Co., Ltd
Customers: J.Crew, Frownes Bros Co inc.
Email: Chenyg@jsh.sina.net
8.Zengcheng Zhilishun Enterprise Ltd.
Customers: Fashion Options Inc., Mary Fong Chb, Oxford Collections
Zengcheng has specialized in manufacturing and export sweater since 1986.All of their
product exports sell in North American, Europe, and Asia. They are located in the economic district with a 5 floor workshop. They have quality controlled standards. They are
located conveniently for traffic advantages
37
9. Ningbo Shenzhou Knitting Co., Ltd
Customers: Uniqlo, Dicks Sporting goods, Fast Retailing Usa Inc.
www.ishenzhou.com
They continuously take “Human Paramount, Client imperatorial value point and devote
themselves to become the global knitwear manufacturer with the strongest competition. They constantly work to provide consumers with the new fibers. They concentrate
on great service and high-quality goods.
10. Kunshan Genrita Textile Co., ltd.
www.genrita.com.cn
Kunshan is a quick-developing factory with strong socail conscience and great ambition. They are dedicated to developing and producing high-class sport wear and
Eco-friendly garments. They provide excellant service and living or their employees. Our
factory is located in Kunshan City, Jiangsu Province. It takes only 30 minutes’ drive from
Shanghai Downtown to our factory.
rThere system includes sale, QC, shipping and designing. They periodically train theirteam members so that they can keep pace with the rapid-changing business environment.
They always believe that customers’ success is also our success, so we they willing to
hear voices from customers and markets and do everything to support customers’ business.
11. Ningbo Mengdi Imp. Exp.Co. Ltd.
Customers: Eddie Bauer
Monica.vannacci@mendiitaliasrl.it
Ningbo is an enterprise of knitted garments.They specialize in sports wear for men and
women, leisure wear, pajamas and children garments. It is located right next to next to
Shanghai and neighbors Beilun Port of Ningbo. I has convenience and advantages of
ocean shipping and direct access towards oceans. It was established in 1995. In 2002,
their company invested to build a Dyeing and Knitting company. They seek negotations
with clients, process control of proudct and order fullfilment.
Enterprise Spirit: Base upon customers, keep first class in mind and self exceeding.
Quality Policy: Quality is eternal and earnest is its guarantee.
Company Statement: Keep developing new products by advanced technologies, put
out first-class products of best quality, retain enterprise vitality by highest efficiency and
realize our commitments to customers by focusing on them.
General Operation Policy: Regard exploitation & development as the target, customer’s satisfaction as the principle and entire participation as footstone.
Market Scope: Center on customer service, innovative ability as the radius. The stronger
innovative ability we have, and the broader market scope we get.
12. Jiangsu Jing Meng Knitting Co., Ltd.
Customers: Chicos, Urban Outfitters, Macys, Polo, Ann Taylor
www.jmknit.com/
sun@mail.jmknit.com
38
Knitfit Co. COST SHEET
Company name: Knitfit Co
Address: Portland, Oregan
97034
Group Name: Comfort Knit
Classification:Women's knitwear
Season: F/W 2014
Garment Label: White
Fabric Content: 100% Organic Cotton
Colorway: ivory, blush, grey, Carolina Blue
Phone: 616-822-8407
Email: Knitfitco@gmail.com
Material
Style # 6673
$/Yard
Quantity
$4.09
$/Unit
Thread
3 Labels
Hangtag
Quantity
0.00126
0.05
0.03
Packing
Quantity
0.045
$/Unit
Cartons
Tape
Labels
$Total
Quantity
0.04545
$Total
30
3.03
Total Packing Cost:
Patternmaking
Grading
Marking
Cutting
Sewing
Washing
Prepacks*
Admin
$0.108
$0.152
$0.030
1.01
0.04545
1.22
0.01
Labor
$Total
$0.260
$/Unit
Re-Usable Bag
Total Packaging Cost:
$5.494
86
3.03
1.01
Total Component Cost:
Packaging
$Total
1.3433
$5.494
Total Material Cost:
Components
Size range:
XS, S, M, L,
XL
0.040666667
0.0303
0.06
0.131
.059 per minute
Cost
$Total
1%
1%
1%
10%
10 minutes
$0.006
$0.006
$0.006
$0.059
$0.590
$0.059
$0.50
Total Labor Cost: $1.167
Other
size/quantity
Box
(23"X10"X6")
Freight Container
17580
Duty
19.70%
Insurance
Broker
Total Shipping:
Grand Total per Garment:
Cost
$2,625.00
$7.27
$325.00
$250 per entry
$1.61
$8.81
$Total
$0.149
$1.43
$0.02
$0.01
39
Cost and Pricing:
Cost to Produce: $8.81
Price to sell” $50.00
Markup: $41.19
Wholesale Price: $31.50
Import Classification
HTS code:
Apparel
HTS SUbheading
61-62
Tariff Rate Range (%)
19.7%
Preferential Treatment:
Tariff rate quotas allow for imports of cotton and wool in limited quantities at reduced
duties, ranging from 1% to 9%. China has placed quantitative restrictions on the
amount of these commodities that can enter at a low “in quota” tariff rate. Any imports over that quantity are charged a prohibitively high duty.
Most imported and domestic goods are subject to a VAT, which is applied on the c.i.f
plus duty value. Also a consumption tax of 2-3% is applied on the c.i.f value.
hinese standard FZ/T 01053 – 2007 “Textiles – Identification of Fiber Content” stipulates
the label requirements of fiber content of textiles, marking principles, marking method,
tolerance and judgment of consistency of identification, and provides examples of
fiber content representation.
Labeling - China
The labels on textile products should be in the Chinese characters and include the
following mandatory data:
name and address of the manufacturer
name of the product (in accordance with Chinese standard)
size (in accordance with standard GB 1335)
product composition: name and composition of the various raw materials used
cleaning instructions (compulsory use of symbols defined by GB/T 8685-2008 -- SGS information sheets are available in English and in Chinese.)
storage conditions and other recommendations: compulsory for delicate products
‘best before’ date (only for products that are perishable)
Nº of standard
quality classification (if required by Chinese standard)
40
The labels also have to respect the following presentation, according to the product:
printing or direct weaving in the fabric
label sewn, or affixed or hanged to the product
printing or pasted to the packaging
in the documents accompanying the product
Logistics and Importation:
1.Manufacture/Wholesaler/Supplier
Manufacturers are paid for the cost of their goods as well as its packaging. Export documentations are also prepared by the manufacturer. Shipping terms like Delivered Duty
Paid (DDP) and cost, insurance & Freight (CIF) are beneficial compared to Freight on
Board. The supplier takes care of the inbound risks and have the delivered products
paid off.
2.Road Haulage Company
The road haulage company is responsible for collecting from suppliers and delivering
these to the docks/airport.
3.Sea Freight Company
The supplier will have to negotiate a rate with the sea freight company to have the
goods transported. If less than a container load is necessary, then you only have to contact a freight forwarder. The sea freight company is responsible for verifying the goods
and documentation as well as loading them into the vessels. Usually, costs range between $1500 and $4500 which depends on the volume of the shipment.
Freight associated charges are computed per kilo on the volume weight of your goods
and small lightweight consignments are issued with less charges.
In your country, goods are unloaded and if all documentation is in order Customs clears
good. You can pay off any duty and tariffs required.
Payment options:
1.Cash
2.Deferred payment-only available to importers who are holders of a deferred account.
3.Broker deferred-available on the request of an agent who holds a broker deferred
account.
Transportation to warehouse:
You need to arrange collection from docks/airport with a freight company.
Warehouse Storage:
Warehouse will charge to receive the product (cost of labor involved in handling the
goods), plus there is long-term storage costs. If you use a broker and/or a freight forwarder you will need to budget for another couple hundred dollars. It is possible to
negotiate the cost of all stages of this process and shipping around can save a lot of
money.
41
FREIGHT
Sea Hog Global Shipping & Logistics
This is the largest impor tlogistics company in China. It was established in 1997 and
has 9 branch offices in coastal China. They mainly import Machines & Production line,
chemicals, wood and grocery. They offer customs Brokerage, Commodity inspection,
China customs Duty, China import Tax, China Import Tariff, and China customs Declaration. They provide door to door service and offer weekly departures to and from their
destinations. They also offer international air freight to hundreds of destinations worldwide. They can handle any sized aircraft in China shipment.
BGI Worldwide Logistics:
BGI provides dependable freight forwarding services to China via ocean and air. They
have over 700 customs and branch offices in China. They also track and trace shipments, have door to door delivery, customs clearance and competitive prices. Domestically they offer trucking and rail as well.
http://www.bgiworldwide.com/freight-ltl-ftl-trucking/
China Shipping Group-Guanghzhou
Get Shipping Co.-Shanghai
COSCO Shipping Line China-Guangdong
ASB Logistics co.-Shanghai
China Shipping Container Liner Guanghzhou Co.
China Shipping Container Lines-Shanghai
source: mos.com
42
Source: Infastructureusa.com
43
Domestic Air Freight
source: centreforaviation.com
International air freight
source: centreforaviation.com
44
The shipping route for my Knitfit Co products from China to Portland:
Pacific Northwest Service (PNW) from Shanghai to Seattle. It is going to take 18 days.
Cost: $3,327.60 With insurance. Without insurance cost: $3,294.65
Once in Seattle a truck will pick up the container and drive it 178 miles. It will take 3
hours.
Cost: 337.65 with customs cost: $479.96
45
Standards, Regulations
and Laws
China Compulsory Certification (CCC) System
(CCC) System Overview
CCC Mark Product Scope: English (HS codes)
CCC Mark Product Scope: 2011 in Chinese
CCC Exemption Guidance
When do products qualify for exemption?
Flowchart: the exemption process
Required materials for exemption application
CCC Mark FAQ
Updated AQSIQ CCC Mark Regulations July 2009 in Chinese (Chinese Government
Site)
China RoHS
China RoHS Regulations and Helpful Links
China RoHS: Overview and Best Practices (recorded webinar)
China RoHS: related presentations
China RoHS Webinar Questions and Answers
Packaging Standards
China Packaging Machinery Standardization
Textile
Import Documentation/Procedures (China)
Import Licenses--Details of commodities subject to import licensing are published annually by the MOFCOM in the Catalogue of Goods Subject to Import Licence Administration and the Catalogue of Goods Subject to Automatic Import Licensing Administration. Licences are not transferable. No fees, charges, deposits or advance payments
are required for the issuance of licences.
Import Restrictions (China)
The “Catalogue of Commodities Which are Restricted or Prohibited from Importing for
Use in the Processing Trade” identifies the following “prohibited commodities”: used
garments; used publications with licentious content; radioactive or harmful industrial
waste; junk cars, used automobiles or components; seeds, seedlings, fertilizers, feed,
additives, or antibiotics used in the cultivation or breeding of any export commodity.
The catalogue lists seven general types of “restricted commodities”: raw materials for
plastics, polyester sections, raw materials for chemical fibers, cotton, cotton yarn, cotton cloth, and some steel products.
46
Textile and apparel products put up for sale in China are subject to certain quality and
safety requirements, identified as mandatory national (GB) standards, as well as various and professional standards.
Professional standards (also called industry standards) apply when no national GB
standard exists. Professional standards are sector-specific technical or quality requirements. The code “FZ” is used for textile sector standards and the code “QB” for light
industry, which includes leather, fur and feather products. Voluntary standards are indicated with “/T” added after the codes.
Textile and apparel products put up for sale in China must comply with GB 18401-2010
“National General Safety Technical Code for Textile Products”. GB 18401 contains the
principal requirements, test methods, and test rules for textile products in China’s market. Mandatory tests under GB 18401 include:
•
formaldehyde content
•
pH value
•
color fastness to water, perspiration (acid & alkaline), rubbing
•
color fastness to saliva on baby products
•
determination of odor
•
azo dyes
Textile and apparel products put up for sale in China must be labeled, as required by
GB 5296.4 “Instruction for Use of Products of Consumer Interest – Instructions for Use of
Textiles and Apparel”. According to GB 5296.4, the following information must be included, with the first three items provided on a permanent label.
Product specification and size designation – size designation for apparel in accordance with GB/T 1335.1 - 1335.3.
Fiber content/component and content of material used – in accordance with FZ/T
01053
Care Instruction/Washing methods - symbols specified in standard GB/T 8685, and certain words to explaining graphic symbols
Name and address of the manufacturer – or in the case of imports, the registered
name and address in China of the agent or importer or dealer and the country of origin
Product Name - according to the national or industrial standards whenever possible
Product standard code - relevant national, industry or enterprise standards for which
the product was tested
Product quality classification - based on requirements of relevant product standard
Product quality certificate - Product quality certificate for each product (selling unit)
manufactured in the domestic market
Chinese standard FZ/T 01053 – 2007 “Textiles – Identification of Fiber Content” stipulates
the label requirements of fiber content of textiles, marking principles, marking method,
tolerance and judgment of consistency of identification, and provides examples of
fiber content representation.
Chinese standard GB 20400-2006 “Leather and Fur – Limit of Harmful Matter” is a mandatory standard for leather and fur apparel and home furnishing products. Industrial
use products are excluded. GB 20400 includes mandatory tests on formaldehyde content and azo dyes.
47
Labeling - China
The labels on textile products should be in the Chinese characters and include the
following mandatory data:
-name and address of the manufacturer
-name of the product (in accordance with Chinese standard)
-size (in accordance with standard GB 1335)
-product composition: name and composition of the various raw materials used
-cleaning instructions (compulsory use of symbols defined by GB/T 8685-2008 -- SGS
-information sheets are available in English and in Chinese.)
-storage conditions and other recommendations: compulsory for delicate products
‘best before’ date (only for products that are perishable)
-Nº of standard
-quality classification (if required by Chinese standard)
The labels also have to respect the following presentation, according to the product:
-printing or direct weaving in the fabric
-label sewn, or affixed or hanged to the product
-printing or pasted to the packaging
-in the documents accompanying the product
-Information including the model, type, and specifications of the product, product
composition and cleaning instructions must be affixed in a permanent label. For fabrics, the label can be either hanged, printed, or woven.
It is also important to note that in many instances the Chinese importer will affix the
label after importation.
48
China Import and Export
Documents
Shipping documents
bill of lading
commercial invoice
packing list
air waybill
consular invoice
customs invoice
weight memo
Documents related with China Customs
customs declaration form (in Chinese)
Documents issued by Entry-exit Inspection And Quarantine Of The People’s Republic Of China
inspection certificate (in Chinese)
certificate for raw silk classification and conditioned weight
certificate of analysis
fumigation/disinfection certificate
phytosanitary certificate
animal health certificate
veterinary (health) certificate
health certificate
sanitary certificate
inspection certificate of quantity and weight
quality certificate
Certificate of Origin
certificate of origin for imports of agricultural products into the european economic community
certircate of authenticity fresh’emperor’table grapes
certircate of authenticity tobacco
certificate of origin(textile products)
certificate of origin form f for china- chile fta (Form F)
certificate of hong kong origin
china-singappre free trade area preferential tariff certificate of origin
form for the Free Trade Agreement between the Government of the People’S Republic of China and
the Government of New Zealand
certificate of origin china-pakistan fta (Form P)
certificate of origin asia-pacific trade agreement (Form B)
asean-china free trade area preferential tariff certificate of origin (Form E)
form a
certificate of origin
Export Permit, Quote or License
export licence for dual-use items and technologies of PRC
permit/certificate for import/export & re-export (convention on international trade in endangered species of wild fauna and flora)
clearance notification for environmental management on import/export of toxic chemicals
temporary textiles export licence of the people’s republic of china
Insurance Documents
Insurance Policy
Insurance Policy Application Form
49
Required Documents
A. Bill of Lading (Ocean freight Bill of Lading) - the main maritime document. It identifies the shipper, consignee, name and quantity of the goods.
B.1. For transportation of commercial cargo - Commercial Invoice. It contains more
complete information about the cargo, including price, quantity, name of the goods.
B.2. To send a private personal belongings need a Packing List. It contains a list of items
and their approximate cost. Note: Some companies also require commercial invoices
for transportation of personal belongings.
To accept and confirm all documents U.S. Customs, all commercial invoices and packing lists must be in English, they contain the following information:
Freight cost in U.S. dollars (exchange rate on the day of shipment;
Full name and address of shipper, commercial goods - the ID number of the company;
Full name and address of consignee;
Detailed specification of the goods;
Quantity of cargo;
Weight of the load;
Place of origin of goods (country of manufacture).
Additional documents, depending on commodity and country of origin:
D. Packing List (Packing List) - with the full description: quantity, weight, packaging material (for example: wooden pallets, boxes, crates, pallets, etc.)
E. Certificate handling (Fumigation Certificate) - certification, indicating that the
goods and packaging materials were processed after being loaded into the container and the cargo is safe from infection.
F. Special Documents - depending on commodity and country of origin.
Visa
Quota
Visa/Quota
Certificate of Origin
North American Free Trade Agreement Certificate of Origin (N.A.F.T.A.)
Packing Declaration
Dangerous Goods Declaration – hazardous materials
Fish and Wildlife Declaration
Consular Legalized documents
F.D.A.
U.S.D.A.
Anti-Dumping
50
Banking Documents
Product Name
Examination of Documents
Product Description
The Examination of Documents here means the combined service provided by BOC London, including
examination of documents and sending of the document for payment to the issuing bank.
Product Functions
The product is for the needs of exporters for settlement and collection of payments under L/Cs.
Product Features
1. The product is for the needs of exporters for settlement and collection of payments under L/Cs;
2. Low risks. The issuing bank’s bank credit substitutes the commercial credit of importers and provides a
conditional payment undertaking for exporters;
3. High initiative. So long as the document quality is ensured, the unconditional payment undertaking
will be granted by the issuing bank, while the document quality is under the full control of exporters;
4. Passing on costs. Banking fees related to issuance of the L/C may be borne by importers, which is
advantageous for exporters.
Eligible Applicants
1. Exporters who are not familiar or confident with the credit standing of importers, thus requiring additional commitment from the bank of importers;
2. Exporters need to apply for packing loan from a local bank to finance the goods to be exported.
Application Requirements
1. The applicant shall be approved and registered in accordance with the law, and hold a business
license that has passed the annual inspection or other valid certificates which fully prove its legal operation and scope of business;
2. The applicant shall have the qualification to engage in import and export trade.
Application Procedures
1. The exporter (beneficiary) presents export documents to Bank of China after the preparation and
shipment of the goods under the L/C terms;
2. After examining the documents, Bank of China mails the documents to the foreign issuing bank or the
nominated bank to claim reimbursement;
3. The foreign issuing bank presents the received documents to the applicant under the L/C;
4. The foreign issuing bank makes due payment to Bank of China and Bank of China will pay the exporter.
51
52
53
54
Conclusion:
After looking at all of the variables of sourcing to China, it is very clear that both
risks and benefits are present. The state of the Chinese economy is currently increasing
which means that the increasing costs of goods is also increasing. As of now, China
is still a lead manufacturer in the apparel world with low enough prices. The state of
the apparel industry is strengthening due to the growing economy. This is allowing the
funding for manufacturers to increase which creates better facilities for workers which
in the end creates better products. This will lead to improved labor laws to regulate
any practices that might not align with the sourcing guidelines.
As of now there is no trade agreement between the United States and China. If
they create an agreement this will eliminate the duty rate. This will not affect textiles as
much but establishing that relationship with China will overall make trading easier. The
costs of materials are continuing to rise and a trade agreement will eliminate some of
the costs.
With the better facilities, manufacturers are able to meet their sourcing guidelines. Many of the manufacturers overseas are working on becoming more sustainable
so that people want to work with them. Along with the risks in production comes the risk of natural disasters and political
issues that may impact production. We have heard about many earthquakes, tsunamis, and flooding in the past few years. These issues can cause a lot of damage that
may halt production for quite some time.
I am aware that Korea, one of China’s bordering countires is threatening the
United States. They have tried to drag China into it with them which would put China
and the U.S relationship at risk. With 14 other bordering countries, political issues occur
frequently.
Overall, I think China will continue to grow and their relationship with the U.S will
strengthen which will lead to good business. China’s costs of goods may be rising but
other countries cost is probably rising as well. Chinese people negotiate at a very slow
pace so you must be patient and build a relationship with them. The better the relationship, the easier it will be to do business.
55
Appendix
56
Country Traits:
A.
Social: China possesses unique characteristics that allow citizens to live in harmony. Chinese people have a lot of patience. On the streets they often stand and
block oncoming traffic and people. This is acceptable behavior. There is a lot of competition for seats, access to doors and people standing when they should be seated.
However, they do not show unpleasantness or concern. Chinese are fundamentally
unaware and extremely tolerant.
B.
Population: There are 1.3 million people in China. The population in China makes
up 19.48% of the world population.
Age Structure:
O-14 years: 17.4% (male
125,528,983/female 107,668,285)
15-24 years: 16.1% (male
113,504,233/female 102,285,206)
25-54 years: 46.5% (male
319,710,444/female 305,378,723)
55-64 years: 10.9% (male
74,447,204/female 72,451,831)
55+ years: 9.1% (male 58,677,903/
female 63,587,111)
Source: Indexmundi.com
57
Ethnic Groups:
The Han Chinese make up 91.9% of China’s population. They dominate China culturally and politically.
China has 55 recognized minority groups that total to about 8% of the nations population. Here are some of the more popular ones:
•
Bai Minority
•
Naxi Minority
•
Dai Minority
•
Miao Minority
•
Dong Minority
•
Zhuang Minority
•
Yao Minority
•
Uygur Minority
•
Hui Minority
•
Tibetan Minority
•
Tujia Minority
•
Kazak Minority
•
Hani Minority
•
Manchu Minority
•
Mongolian Minority
•
Qiang Minority
•
Shui Minority
•
Yi Minority
58
source: ninglundecember.wordpress.com
Religion:
China is a multi-religion country and always has been. It is well known for Confucianism, which is the indigenous religion and the soul of the Chinese culture. 85% of Chinese people have religious beliefs and the other 15% are atheists.
Buddhism: Buddhism was brought to China 2,000 years ago and was widely accepted
by most Chinese people especially in the Han and Tibetan groups. Buddhism is not just
a religion it is also a culture that influences art, literature and ideology. Buddhism is not
the most important religion in the country. 31% of people who do not believe in this
religion have participated in some Buddhist activities. Han Buddhism has 8,400 temples
and 50 thousand monks in the mainland. Tibetan Buddhism has 3,000 temples and 120
thousand monks and Southern Buddhism has 8,000 monks and 1,600 temples.
Confucianism: Confucianism is not a real religion it is just an ethical system. It obtained
its position during the Han Dynasty and became the ideology of the society. It is based
on four books and five classics that hold the traditions and principles of Confucianism.
Confucianism has worldwide influence and is found in countries such the U.S and UK.
There are Confucius temples.
Taoism: Taoism has over 1,800 years of history and originated during the Eastern Han
Dynasty. There are about 300 Taoist Temples that are scattered throughout China, in
which 30,000 Taoists lived in. There are 5 Taoist schools in the country today. Taoism
influenced local cultures deeply when it came to literature and medicine.
Islam was introduced into China in the 7th century in Tang Dynasty. Now Muslims live
everywhere but the highest concentrations are Ningxia Hui Autonomous Region, Xinjiang Uygur, Gansu province and even Qinghai Province. Two of the famous Islamic
Relics are the Great Mosque, Xian and Dongguan Mosque, Xining.
Christianity and Catholicism:
Both of these religions were introduced to China in Tang Dynasty. After 1840, they
swept the country but were suspended in 1949. Now about 15 million Chinese people
are Catholics and 20 million Christians are in Mainland.
59
Languages:
Chinese is comprised of seven main dialects, Mandarin, Cantonese, Hakka, Wu, Min,
Xiang, and Gan. Mandarin is the official national language of Mainland China and is
considered the common language. (China Language) The second most common language in china is Cantonese and is often heard in Hong Kong and overseas Chinese
communities. These languages are termed dialects from sociological and political
points of view. (China Language) Six of the seven main dialects are in the southeast
of Chinese, south of the Yangtze River. “Han Chinese represents about 92 percent of
the total Chinese variant of Mandarin as their native tongue. The common language
is used as a second language in government, media and education communication.
All varieties of Chinese belong to the Sino-Tibetan family of languages. Different tones
distinguish words that are pronounced identically. Despite the diversity of speech in
China, they do share a common script making written communication possible between the different dialects.
Government: The People’s Republic Of China
Type: Single Party state, Communist State, Socialist State
Capital: Beijing
President: Xi Jinping
Vice President: Li Keqiang
State Council: Wen Jiabao
Chairmen of the NPS: Wu Bangguo
Chairmen of the Central Military commission: Xi Jinping
The primary organs of state power are the National people’s Congress, the president
and the State council.
Currency: Renminbi
GDP: 7.318 Trillion
source: romanoprodi.it
60
Education:
China education is the largest education system in the world. In 2013 there were 9.15
million students taking the China’s National Higher Education Entrance Examination.
Investment in education accounts for about 4% of total Gross Domestic Profit in China.
In 1986, the government passed a compulsory education law, making nine years of
education mandatory for all Chinese children and about 99.7 percent of the population has achieved this basic education.
International students have enrolled in over 690 higher education institutions throughout the country. China has a long history of providing education to international students studying in high school or universities in China.
History of Education:
Many Chinese scholars believe that the history of the Chinese education system can
be traced back as far as the 16th century B.C. The teachings of Confucianism were
based on The Four Books. This includes The Great Learning, The Doctrine, of the Mean,
Confucian Analects and The Works of Mencius. Confucianism is probably the biggest
influence in education of China. During the Han Dynasty a form of public education
was established. This made education available to not only upper class families but
also any common man.
“In Confucianism, a gentleman considers what is right, when the peasant considers
what will pay. A gentleman trusts in justice and the peasant trusts in favor. A gentleman looks within for guidance and the peasant looks unto others. A gentleman is easy
to serve, and hard to please. The peasant is hard to serve, and easy to please. A gentleman in Confucianism often emphasizes the different behaviors between the gentleman and the peasant.” Studying Confucianism itself was limited to few people in
ancient China and most of them were from upper class families.
In Ancient Chinese culture, there was no need for common people to know why.
During the Han dynasty the Civil service exam was set up and Confucianism was one
of the main subjects. “To enrich your family, there is no need to buy good land: Books
hold a thousand measures of grain.” The civil service exam system from Han dynasty,
although as been changed throughout history, was used all the way up to the Qing
dynasty.
In 1985, the Central committee of the Chinese communist Party decided to reform the
educational structure. This laid down the principle that local governments should be
responsible for basic education. This was an incentive for local governments because
it was on a firm legal basis.
In the past 60 years China basic education has gained tremendous achievements. “In 2010, there were 138,209 kindergartens with an enrollment of 15,468,596
young children. In 2010, there were altogether 280,184 primary schools with an enrollment of 17,388,465 students.” Today this nine-year education system has been universalized.
61
Pre-School education:
Pre-school education is an important component of education cause in China. In
urban areas, pre-school education is mainly ages 1 to 3 years, which is sometimes full
time and sometimes part-time. In rural areas, pre-school education is mainly nursery
classes and seasonal kindergartens. The pre-school education has developed rapidly.
It is a way of combining childcare with teaching so that children develop both physically, morally, intellectually and aesthetically in a harmonious way. “Kindergartens
constitute systematic, purposeful and multi-faceted process of education conductive
to lively, invigorating and sound development of children. “To enhance the management and guidance in these schools, the state has contrived a series of regulations
and rules concerning the qualification of teachers and their performance.
Primary and Secondary Education:
In China, primary and secondary education takes 12 years to complete. It is divided
into primary, junior secondary and senior secondary stages. This is a lot like the American education system, elementary, middle-school/Junior High, and High School.
The school year for primary and secondary school is also divided into two semesters.
The school year of primary school comprises 38 weeks of teaching and an additional
week in reserve. There are 13 weeks fro holidays and vacations. The school year for
junior secondary schools comprises of 39 weeks, a week for reserve and 12 weeks for
holidays and vacations. The school year for senior secondary schools comprises of 40
weeks of teaching, 2 weeks in reserve and 10 weeks for holidays. They go to school 5
days a week. The current curriculum of senior secondary consists of two parts. They
study subject courses and activities. Like American schools, they offer obligatory classes and electives.
Throughout compulsory education, students are required to take end-of-term
examinations and tests. In primary schools, the Chinese language and mathematics
are required examinations while other classes are considered check-ups.
After Education is important in the development of primary and secondary students.
“Under the cooperative administration of departments in charge of education, culture, physics, worker’s union, the communist Youth League, Committee for Women
and Children’s work and science and technology, after school education is conducted by joint efforts of the concerning central departments. Children may take part in
these activities organized for them.
“After the founding of the People’s Republic of China in 1949, the government began
to pay great attention to the preparation and production of school textbooks and other teaching materials.” Four conservative sets of syllabuses of subjects were formulated
as well as 8 sets of textbooks. China is a vast country and because of its significant regional areas, the economy and social development is very different, this makes it necessary to have multiple sets of textbooks at different levels to meet the needs of each
area. In addition, many reference and manuals for teachers, booklets, atlas, charts,
slides and audio/visual materials have been produced to supplement the textbooks.
62
ART
Calligraphy and Painting-Calligraphy is one of the oldest and most basic forms of art.
Built from this brush came painting, which developed a distinctive style that differs from
western painting. It is more efficient in terms of brushstrokes and appears more abstract. Landscapes are a very popular theme as well as figurative. Chinese calligraphy,
poetry and painting are closely related with their simplicity. They all seek inspiration
from isolated mountain areas.
Sculpture and Carving- The Chinese are master craftsman and produced fine sculptures in bronze. They created ceremonial vessels used by the nobility for ancestor
worship and tombs in the Han Empire. They would create beautiful bronze objects inlaid with silver and gold and ornamented with abstract designs. Stone was one of the
favorite mediums for sculpture and iron replaced bronze eventually. http://haveblog`
source: yalebooks.wordpress
source: yalebooks.wordpress
63
Architecture- the most significant characteristics of Chinese architecture are in the timber framework. The paintings and carvings added into the architecture make it more
beautiful and attractive. The architecture is mainly wooden posts, beams, lintels and
joists to make up the frame. Walls serve as a separation of rooms without bearing the
weight of the whole house, which is unique in China. Colored glaze roofs, appliqué designed windows with beautiful flower patterns on wooden pillars reflect the handicraft
and rich imagination of the designers. Many buildings contain cultural connotations.
Opera and Theatre- Theatre was used for means of education and moral instruction,
as well as for entertainment. It taught history, cultural values and justice. It is a popular
form of entertainment but is also seen at birthday parties, holidays, festivals and during
harvest time. Theatrical actors begin studying at a professional, private training school
when they are eight or nine years old. They would be apprenticed to a master and
would live in their masters home under contract agreement signed by their parents.
Early in their training they would be split into one of 4 roles; Shan or male roles, Dan or
female roles, Jin or painted face roles, and Chou or Clown roles. Each character will
have face paint in a very unique pattern. Opera makeup has a very rich meaning. A
character with mostly red makeup is considered brave and loyal where black symbolizes boldness and impartiality. Yellows denotes ambition while pink stand for sophistication. Characters with blue faces are fierce and far seeing while green shows impulsive
behavior. An Actor with a small section of makeup on the face is a clown. Chinese
opera has many strong female roles although for most of its history there were no females to play them. A woman who paraded herself on stage would be considered a
prostitute. Men would play female roles.
Source: arts.cultural-China.com
64
Monuments and Sight Seeing
The Great Wall of China is one of the greatest wonders of the world. It
winds up and down across deserts, grassland, mountains and plateaus for
5,500 miles. It is more then 2000 years olf and is one of the most appealing
attractions all around the world because of its architectural grandeur and
historical significance.
The Forbidden City in Beijing lyes at the city center. It was the imperial
palace for 24 emperors during the Ming and Qing dynasties. The palace
for the heavenly emperor on earth was called the purple palace. It is said
that the purple star lies in the center of heaven. It was forbidden to enter
without special permission of the emperor, hence its name “The purple
Forbidden City.”
Qin Terracotta Army was discovered in 1974 by some workers digging a
weel outside the side of Xi’an,China. One fo the diggers found a life size
clay soldier poised for battle. They found thousands of these clay soldiers
each with a unique facial expression and positioned according to rank.
They have further discovered swords, srrow tips and weapons in pristine
condition.
The Temple of Heaven is located in the Chogwen District, Beijing. This was
originally the place where emperors of the Ming and Qing Dysnasties held
the Heaven Worship Ceremony. It is China’s largest and most representative exisiting masterpiece’s among China’s ancient buildings. It was first
built in 1420 but was enlarged and rebuilt later. It is now open to the public
as a park ans shows ancient philosophy, istory, and religion.
65
Yangtze River winds about 3,964 miles and is the largest in China and
third largest river in the world. It originated from the Tanggula Range in
Qinghai Province in western China. It acts as the largest water system in
China and is historically, economically, and culturally important to the
country.
Yellow River is known as the mother river by all Chinese people. It is
about 3,395 miles long and is the second largest river in China. It begins in the Kunlun Mountains and runs through nine provinces. There
are more then 30 branches and countless streams feeding it through its
course. This is the cradle of Chinese civilization and is a spirtual home for
these people. The waters of the river and its spirit nurture the whole nation.
Mount Everest lies on the China and Nepal border. It is 29,029 feet tall
and has seven summits.
Giant panda’s live in only remote, mountainous regions in central China.
They may climb as high as 13,000 feet. A typical animal eats half of the
day. There are only about 1,000 giant pandas left in the wild and seeing
one in China is very lucky.
66
Sightseeing
67
THE GREAT WALL OF CHINA
source: shedexpedition.com
68
THE FORBIDDEN CITY-BEIJING
source: famouswonders.com
69
QIN TERRACOTTA ARMY
70
source: globalmountainsummit.org
71
TEMPLE OF HEAVEN-BEIJING
72
source: beijinglocaltours.com/
73
YANGTZE RIVER
74
Source: paradisechina.blogspot.com/
75
YELLOW RIVER
76
source: tripwow.tripadvisor.com
77
MOUNT EVEREST
78
source: globaltraveltorusim.blogspot.com
79
GIANT PANDA
80
source: naturescrusaders.wordpress.
81
Dining and Cuisine
Chinese cuisine is very diverse with different recipes from ech dynasty. The geography, climate, costumes and products have led to the evolution of what are called
the ‘Four Flavors’ and ‘Eight Cuisines’. In each cuisine chefs use something as simple as
a melon to create new flavors and dishes. Cuisine in China is a harmonious integration
of color, redolence, taste, shape and fineness. Cusine can be made for many different occasions including luxury court feasts, holy sacrifical rites, wedding ceremonies as
well as simple daily meals and snacks. Chinese believe in Medicinal food prolonging
life and promoting energy. The Chinese eat everything with four legs, and everything
that flies. They do not support the eating of protected species or cruelty to animals.
China can be divided into many geographical areas which have many distinct styles
of cooking. Most of their ingredients is based on natural agricultural products of the
region. China’s southern cuisine uses more rice and is more spicy.
The minority culture of Inner Mongolia is pastoral so they eat a lot of dairy products
as well as lamb and beef. Taiwan is isolated from China has developed its own mixed
cusine including seafood.
Sichuan Cusines is the most widely served cusine in China. It is filled with hot and spicy
flavor and includes poultry, pork, beef, fish, vegtables, and tofu. They do a lot of baking, sauteing, and steaming. They often use a thick gravy.
Cantonese is the most popular in Chinese restaurants around the world. The dishes are
characterized by their tender sweet taste. The most widely used sauces in this cuisine
are hoisin, oyster, plum and sweet and sour sauce. They use a lot of onions, sugar, salt,
soy beans, rice, wine, corn starch, vinegar, sesame oil and garlic. Some of their traditional dishes are Chinese steamed eggs, deep fried dishes, shahe Noodles and chicken.
Xiang dishes stems from the Hunan Province. It is known for its richness, creaminess and
moistness combined with the use of chili. It is a very fragrant with crunchy vegtables.
They do a lot of sauteing, stir-frying, steaming and smoking. athey use tea seed oil,
spicy oil and Chinese red pepper.
Lu Cuisine is the native cooking of East China. It dates back to the Qin Dynasty. Seafood is the most notable ingredient of Lu and includes scallops, prawns, clams, sea
cucumbers, and squid all locally. They also use a lot of potatoes, tomatoes, cabbages,
mushrooms, onions, garlics and eggplants. There are over thirty cooking techniques
applied in Lu Cuisine.
Hui Cuisine is from North China’s Anhui province. Anhui is abundant in uncultivated
fields, mountains and forests which provide a lot of rich local ingredients. They produce, stone frog, mushroom, bayberry, tea leaves, bamboo shoots and dates. Hui is
very particular about controlling cooking time and temperature. Heat is applied according to the quality.
82
Zhejiang cuisine originated from South China’s Zhejiang Province. It is famous for its
mellow, yet not greasy taste. It cosists of three major style, Hangzhou style, Ningbo style
and Shaoxing style. It requires expertise in cooking techniques. They make a lot of seafood and freshwater fish.
Su cuisine has a fresh taste with mdoerate saltiness and sweetness which is thick without being greasy. They place an emphasis on soup. Su cuisine is composed of six styles.
They have fine cutting techniques and feature freshness, fragrance, crispiness and
tenderness.
Min cuisine originates from China’s Fujian province. Their abundant resources come
from the mountain and sea. They place a lot of attention on utilizing soup. Salty seasonings include shrimp sauce, shrimp oil and soy sauce. There techniques include
pan-frying, deep-frying, boiling, baking, stewing, mixing, sautéing with wine, stewing in
gravy, grilling, cooking with red rice wine, simmering, stir-frying, smoking, braising and
salting.
source: Chinahighlights.com
83
Fiscal Policies:
China’s economy has entered the year on a “relatively stronger footing” than last
year, as recent data point to a rebound in activity and suggest that real gross domestic product growth “will likely measure comfortably in the 7.5%-8.5% range” in 2013,
Moody’s said in a paper about the country’s outlook.
“The recovery is supported by policy easing and credit extension, particularly by the
non-banking sectors,” Moody’s said.
The People’s Bank of China (PBOC) cut rates twice and reserve requirement ratios
for banks 3 times last year, complementing these policy actions with “a big step-up in
open-market operations,” according to the rating agency.
“Recent developments suggest that fiscal policy has also become more expansionary,” it said, citing a slowdown in the growth of revenues to the state budget to 12.8%
in 2012 from 25% in 2011, overtaken by 15.1% growth in expenditure.
In the previous two years, revenue grew faster than expenditure.
Moody’s estimates that China’s budget deficit was 1.5% of GDP last year, higher than
2011’s 1.1%.
China’s rebound is also supported by the recent stabilization in global economic conditions, it said.
Export growth increased to 9.4% in the fourth quarter from the third quarter’s 4.4%
growth; but for 2012 as a whole, exports increased by just 7.9%, less than half 2011’s
20% growth.
“Our view is that China’s potential, real GDP growth may range between 7% and 8%
annually over the next 5 years through 2017, with the advancement of financial market reforms and sound regulations,” Moody’s said.
SHADOW BANKING ON THE RISE
Growth in domestic bank loans picked up to 15.6% last year, compared with 2011’s
14.3% increase. Domestic credit to GDP is around 150%, lower than the eurozone’s
174.5%, Taiwan’s 171% and Japan’s 240%.
84
Economy: China currently has a very strange mix of socialist, capitalist, and communist
ideas for their economy.
http://news.xinhuanet.com/english/china/2013-03/05/c_132207942.htm
Fiscal Policies:
GDP:During the five year period, the central government’s fiscal revenue totaled nearly 21.9 trillion yuan, or $3.5 trillion. In the meantime, central fiscal expenditure totaled
around 24.9 trillion yuan.
Industries: There has been increased spending on education, medical care, green industry and transport. More than two thirds of the spending has gone to public-welfare
related areas.
Export: In addition, the central government has sought to implement structural tax
cuts. China has piloted its Value Added Tax reform in 9 provinces and cities, cutting 40
billion yuan in taxes for more than a million businesses in 2012. Experts say the measures
have helped develop the services sector and upgrade China’s economic structure.
Structural Reform: China will maintain a proactive fiscal policy and a prudent monetary policy in 2013, as well as expand the economy by 7.5 percent, Premier Wen Jiabao said while delivering his last government work report at the parliament’s annual
session Tuesday. The Chinese government has maintained the policies since 2011,
as well as vowed to maintain their continuity and stability and make them more forward-looking, targeted and flexible.
Source:ibtimes.com
85
Money: Renminbi
The renminbi is the official currency of China. Renminbi is legal tender in mainland China, but not in Hong Kong, Taiwan, or Macau. Renminbi is sometimes accepted in Hong
Kong and Macau, and are easily exchanged in the two territories.
$1 US Dollar = 6.22 Yuan
Yuan= basic unit for currency
source: enlight.ru
86
Geography:
Location: Southeast Asia along the coastline of the Pacific Ocean. It is the world’s third
largest country.
Area: 9.6 million square Kilometers, and its shaped on the map is like rooster.
Physical Features: Plateaus, basins, foothills and mountains occupy 2/3 of the land. The
highest PLateau is 4,000 meters.
It is divided into 4 regions, the North, South, Northwest and the Qinghai-Tibetan areas.
Climate:
North- -20C to -40C with snow. Summer can get to 100 degrees and rainy.
South: Summers are 38C, winters are January through March and it is not as cold as the
North.
Central: Long humid summers with high temperatures. Winters drop below freezing.
Source: Sites.google.com
87
Knitfit Co.
Block Knit Design Sheet
Company name: Knitfit Co
Address: Portland, Oregan 97034
Phone: 616-822-8407
Email: Knitfitco@gmail.com
Date Created: 4/2/2013
88
Date Modified:
Style # 6673
Garment Information:
Group Name: Comfort Knit
Classification:Women's knitwear
Season: F/W 2014
Garment Label: White
Colorway: ivory, blush, Stone, Carolina Blue
Description: Block Knit
Date Released:
Knitfit Co.
Block Knit Illustration Sheet
Company name: Knitfit Co
Address: Portland, Oregan 97034
Phone: 616-822-8407
Email: Knitfitco@gmail.com
Style # 6673
Group Name: Comfort Knit
Classification:Women's knitwear
Season: F/W 2014
Garment Label: White
Fabric Content: 100% Organic Cotton
Colorway: ivory, blush, grey, Carolina Blue
Fabric Information
100% Organic Cotton,
Shishi Haobao Textile Co.,
Ltd. Model #DB76
Style # Width Size Ranges
See fabric
XS, S, M, L,
Sheets
XL, Sample
size: M
Delivery Date Comments
TBD
Date Created: 4/2/2013
Date Modified:
Date Released:
89
Knitfit Co.
Block Knite Size Sheet
Style #: 6673
Care Instructions
Machine wash cold with like colors. Do not bleach.
Tumble dry on low or hang dry.
Tol +/0.25
0.375
0.375
0.375
SIZES
A Length
B Sleeve length
C Shoulder length
D Neck
Circumference
E
Torso
Circumference
1
0.25 F sleeve detail
G Armhole
0.5 circumference
90
XS
S
M
L
XL
19.5 19.8
20.0 20.3
25.7 26.0
26.4 26.8
3.1
3.5
3.9
4.2
20.5
27.2
4.6
21.6
22.0
22.4 22.8
23.1
31.0
3.5
32.0
3.8
33.0 34.0
4.0
4.3
35.0
4.5
6.5
7.0
7.5
8.0
8.5
Knitfit Co.
Block Knit Component Sheet
Company name: Knitfit Co
Address: Portland, Oregan 97034
Phone: 616-822-8407
Email: Knitfitco@gmail.com
Item-VendorCode-Origin
Content
Anecot
Organic-A&E
China
100%
Orangic
Cotton
Date Created: 4/2/2013
Style # 6673
Group Name: Comfort Knit
Classification:Women's knitwear
Season: F/W 2014
Garment Label: White
Fabric Content: 100% Organic Cotton
Colorway: ivory, blush, stone, Carolina Blue
Size-Quantity-Unit of
Measure
Location
Color
Comments
Ivory #0112
tex size 35-5000-Spool- All seams and Pink #3727
Blue #7812
hems
as needed per garment
Grey #8629
Date Modified:
Date Released:
91
Knitfit Co
.Block Knit Fabric Sheet
Company name: Knitfit Co
Address: Portland, Oregan 97034
92
Style # 6673
Phone: 616-822-8407
Email: Knitfitco@gmail.com
Group Name: Comfort Knit
Classification:Women's knitwear
Season: F/W 2014
Garment Label: White
Fabric Content: 100% Organic Cotton
Colorway: ivory, blush, stone, Carolina Blue
Sketch:
Swatch:
Fabric Information
100% Organic Cotton,
Shishi Haobao Textile Co.,
Ltd. Model #DB76
Style # WidthSize RangesDelivery Date
Comments
#DB76
XS, S, M, L, TBD
XL, Sample
67"
140gsm
size: M
Date Created: 4/2/2013
Date Modified:
Date Released:
Knitfit Co
. Block Knit Label/Packakging Sheet
Style #:6673
Company name: Knitfit Co
Address: Portland, Oregan 97034
Phone: 616-822-8407
Email: knitfitco@gmail.com
Item-VendorCode-Origin
Designer
label, XHFJ
Econimic &
Trade co,
China
Size tab,
XHFJ
Econimic &
Trade co,
China
Care Label
XHFJ
Econimic &
Trade co,
China, A81
Content
Group Name: Comfort Knit
Classification:Women's knitwear
Season: F/W 2014
Garment Label: White
Fabric Content: 100% Organic Cotton
Colorway: ivory, blush, stone, Carolina Blue
Size-QuantityLocation
Color
Unit of
Comments
Measure
100% cotton
1X1-square-1
per garment
Center Backbetween
seems
White
Print/Make to
fill order
100% cotton
1X1-square-1
per garment
Center Back
Neck, under
designer label
White
Print/Make to
fill order
100% cotton
In between
Rectangle, front and back
.75X3- 1 per
seams-5
garment
inches from
bottom hem
White
See techsheet
print to fill
order
Bar Code tag
Transparent
Vy Pphuong
paper
Co. Ltd,
China
Hangtag,XHFJ
Econimic &
Paper
Trade co,
China, W103
1 per
garment
Attach to
hangtag by
dennison gun
2 Color
Order by size
range, color,
and style #
1.5X3-1 per
garment
hang by
denison gun
Gray with
white writing
print to fill
order
grey
Fill order
Re-usable
1 per
non-woven
bags, Xiamen
garment
fabric,laminat
Probtain
30(W)x42(H)
ed-20121101
Nonewoven
x12(G)cm
CO, A0087
Date Created: 4/2/2013
Date Modified:Date Released:
93
Knitfit Co.
Date Created: 4/2/2013
94
Block knit Label Placement Sheet
Date Modified:
Style # 6673
Date Released:
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