-Have trade clauses allowing the maximization of the return on your profits
The trade clause articles must be submitted to the local government agencies for approval and deposit upon registration of license. Therefore, you must incorporate all necessary clauses in the statements and paperwork from the very beginning.
-Understand the responsibilities and obligations of being an employer in China
China issued the new labor law in 2007 that identified issues of contract, dismissal, etc. Without prior knowledge of the law, you can end up spending a lot of time and money to terminate certain contract labor contract. You should also be aware of the well-being of employees and require to include such costs in your budget.
-Check the trustworthiness of your partner(s) in your joint venture
Always be careful and cautious. Your partner(s) may not be what they claim to be. Your Chinese business partner(s) may seem financially reliable, but they may very well live on bank loans and personal debts. Make sure to conduct thorough research.
-Establish a system of management of local employees
It is hard work to recruit appropriate staff in a foreign country. It is even more difficult to manage them effectively. A reliable and robust management system encourages employee participation and commitment of local staff in order to avoid potential risks. You can include reporting and communication policies, staff training, performance evaluation, compensation, career management and manual management of employees in the system.