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Investment is putting money into something with the expectation of profit. More specifically, investment is the commitment of money or capital to the purchase of financial instruments or other assets so as to gain profitable returns in the form of interest, income (dividends), or appreciation (capital gains) of the value of the instrument. It is related to saving or deferring consumption. Investment is involved in many areas of the economy, such as business management and finance no matter for households, firms, or governments. An investment involves the choice by an individual or an organization, such as a pension fund, after some analysis or thought, to place or lend money in a vehicle, instrument or asset, such as property, commodity, stock, bond, financial derivatives(e.g. futures or options), or the foreign asset denominated in foreign currency, that has certain level of risk and provides the possibility of generating returns over a period of time.

The fundamental reason why China has been obtaining so much foreign investment was merely that China has offered a favorable investment environment for the investors from all over the world to invest, manufacture and manage.

1. The increasingly optimized Chinese macro-economic environment provided realistic guarantee and broad prospects for foreign investment.

2. The outstanding improvement of hard environment for foreign investment guarantees foreign investment.

3. The constantly perfecting soft environment for foreign investment has all the more tallied with the requirements of foreign investors.

4. The Chinese government will further perfect the investment environment in the future.

David is asking advice from Mr. Lin, an official working with China Council for the Promotion of International Trade.

David： China has delivered several decades of double-digit growth and it is amazing to see recently that China surpassed Japan to become the world’s second largest economy. How do you see the change?

Lin： The transition from an agricultural to an industrial economy, particularly on the scale we are seeing in China, leads to enormous productivity gains. Growth in the past has been driven by investment from other countries and China has typically been the largest magnet for FDI. The government has also been an enormous investor into infrastructure and these projects then pave the way for future increases in productivity.

David： Do you think China can sustain this performance? How reliable is the data in any case?

Lin： Is this sustainable? Yes. There is a great deal of momentum behind this trend. That doesn’t mean, however, that there will not be bumps in the road. Generally, with some reservations, you can trust the numbers coming out of China, and in many cases, there is corroborating evidence to support them. In automobiles, for example, 70% of the passenger cars produced in China are made by foreign-invested companies. So, if a 50% increase is reported, you can verify the number based on the numbers supplied by the foreign car makers. In any case, the data has become more reliable over the years.

Lin： China has had tremendous growth, but it has been uneven. The biggest growth has been along the coast and in major cities such as Guangzhou, Shanghai and Beijing. They have had the fastest growth, and there has been growth inland, but it has not been as dramatic. Between North and South, people will say the South is more business-oriented and easier, and those generalizations are useful, though not 100% reliable.

David： Since WWII global recessions have generally been resolved through increases in consumer and industrial demand from the US. This time, however it was led by demand, infrastructure spending and stimulus from China. How real and sustainable is the emergence of China as a platform for consuming demand?

Lin： China has a lot of wealth. It is not just at the top level since most people have in some way participated. There has been enormous creation of wealth and this enables people to spend. The government has also taken steps to bolster the social security net so that ordinary citizens don’t have to save quite as much. As part of its stimulus package, China included incentives for consumption.

David： Economic size does not necessarily translate into quality of life and while problems of various kinds arise such as environmental problems? Demand for democracy?

Lin： China’s environmental issues are big, but I don’t think they are big enough to stop the economy in its tracks. That said, they definitely will need to be dealt with, and that is one of the country’s challenges. At present, there does not seem to be great

demand on the part of ordinary people for Western style democracy. In effect, they have outsourced the management of the country to the government, and so long as the government delivers growth, the people are happy. I’ve been in China since 1993, and while the quality of life is still not as good as in the US, the change has been dramatic. I think that China will continue to progress positively in the future.

David： China has an increasingly complex economy with a multitude of opportunities and sectors. Where do you see the best opportunities moving forward? What should be avoided?

Lin： Anything that has to do with the environment, healthcare and education all have plenty of potential. Distribution and consumption-oriented businesses do as well. As far as areas to avoid? I think the days of export driven businesses hold less promise than in the past. Relationships are indeed important. That does not mean you need to have them when you get to China, but you do need to form them and use them rather than legal means to enforce your goals and interests.

David： Any thoughts on the potential for foreign direct versus portfolio investment?

Lin： There are not many ways to be an equity investor in China since you can’t buy “A” shares directly on the China market, though you can buy China plays through Hong Kong or US-listed ADRs. It is also possible to gain exposure indirectly through McDonalds and other multinationals active in China, but in relation to the size of the economy, there is a deficit in the supply of listed shares available to foreign investors and a lot of pent up demand. For now at least, foreign direct investment is a more meaningful option.

David： Thank you, Lin, for your time and attention. It seems I am too late to enter China.

Lin： I disagree. I would argue it is only beginning in China, and that we are still early in the game.

http://www.safehaven.com/article/18617/profiting-from-chinas-domesticeconomy-conversation-with-jack-perkowski-of-jfp-holdings

David is planning to invest in China and is talking with the manager of a consulting firm based in Xi’an.

David： I am very glad to meet you, Ms. Mi.

Mi： Nice to meet you, too, Mr. David. What can I do for you?

David： I am the head of Romance (a famous Spanish restaurant) and I am thinking of entering into the Chinese market. Here is the brochure to introduce our restaurant.

Mi： All right, let me have a look.

David： While you have the brochure, I can show you the videos about the environment of our restaurant, including the kitchen and restroom.

Mi： Terrific, I should say you really have a romantic feeling as your name says. And the menu looks fine and I heard that the wine your restaurant offers is the most impressive.

David： I am happy to hear what you said and it is very popular in Britain and France, but I am not quite sure whether all that we do can work well in your country and that is what I am here for.

Mi： Yes, I know. That is exactly what we do. We aim to help our clients develop their business by analyzing China’s market and offering local knowledge combined with a global perspective. We always conduct the project by strictly following the schedule and closely communicate with you and keep updating the project progress and submit final deliverables with guaranteed quality.

David. Terrific, but would you please explain the details?

Mi： David, we have a large team working as a whole and each case will be dealt with individually as customers need. I cannot spell out the exact time schedule now and this would be discussed further with my colleagues. However, our unified talent and network will produce a full report to present the business prospect of your restaurant in China by presenting market analysis and strategy, context, financial analysis, etc.

David： Ok, thank you for your kindness and I hope to take you as my adviser to see where and how I can run my restaurant in China, and whether my investment here will pay off. And I will talk later to your colleagues regarding the details.

Mi： All right, we would like to develop a proposal tailored to your company’s needs. And we always work in close partnership with our clients, viewing their successes as our own. We strive to help you achieve results you might not otherwise achieve on your own.

social security net社会保障；社会安全网 incentive n. 刺激，鼓励，奖励政策

consumption-oriented adj. 以消费为导向的 export driven business 出口导向型企业

foreign direct investment外商直接投资 portfolio investment 证券投资；间接投资

deliverable adj. 可交付使用的　　terrific adj. 极好的，极其的，非常的

1. China Council for the Promotion of International Trade：中国国际贸易促进委员会，是由中国经济贸易界有代表性的人士、企业和团体组成的全国民间对外经贸组织，成立于1952年5月。中国贸促会的宗旨是：遵循中华人民共和国的法律和政府的政策，开展促进对外贸易、利用外资、引进外国先进技术及各种形式的中外经济技术合作等活动，促进中国同世界各国、各地区之间的贸易和经济关系的发展，增进中国同世界各国人民以及经贸界之间的了解与友谊。

2. China surpassed Japan to become the world’s second largest economy.中国赶超日本，成为世界第二大经济体。中国在2010年第二季度超过日本成为世界第二大经济体。日本第二季度的GDP总值为1.28万亿美元，中国第二季度的GDP为1.33万亿美元。

3. FDI（对外直接投资）Foreign Direct Investment, 是现代的资本国际化的主要形式之一，按照国际货币基金组织的定义FDI是指：在投资人以外的国家所经营的企业拥有持续利益的一种投资，其目的在于对该企业的经营管理具有发言权。跨国公司是FDI的主要形式。

4. The government has also taken steps to bolster the social security net so that…。政府已经采取措施来强化社会安全网建设…social net，指的是社会安全网，一般泛指政府主导形成的社会安全保障系统。

5. stimulus package：（一揽子）财政、经济刺激计划。例如减税等刺激经济的政策。

6. They have outsourced the management of the country to the government, and so long as the government delivers growth, the people are happy.他们已经将管理国家的重任“转包”给了政府，只要政府能够促成经济的增长，人民就觉得很满意了。Outsource指把……外包。文中指的是责任的转嫁。

7. Relationships are indeed important. 在中国，关系是非常重要的。在社会学意义上，是中国社会中特有的一种人际互动形式。作为跨文化商务交际中研究中国文化中的的一个重要的话题。Guanxi也已经逐渐成为英语的词汇，可见其重要性。

8. There are not many ways to be an equity investor in China since you can’t buy “A” shares directly on the China market, though you can buy China plays through Hong Kong or US-listed ADRs. 因为你不能直接在中国市场上购买A股，所以在中国没有很多方法去做一个股票投资者，虽然你可以通过香港或美国存托凭证购买中国股票。China plays 是对“中国股票”的一种说法。US-listed ADRs American Depository Receipt 美国存托凭证。我国境外上市公司发行外资股在美国采用的存托凭证方式。存托凭证（Depository Receipts，简称ADR），又称存券收据或存股证。是指在一国证券市场流通的代表外国公司有价证券的可转让凭证，这里的有价证券既可以是股票，也可以是债券。

9. It is also possible to gain exposure indirectly through McDonalds and other multinationals active in China, but in relation to the size of the economy, there is a deficit in the supply of listed shares available to foreign investors and a lot of pent up demand. 也有可能通过麦当劳和其他活跃在中国的跨国公司来参与到中国市场。但是由于经济规模的关系，在能够提供给外国投资者的上市股票供应上有赤字和许多被抑制的需求。to gain exposure to sth. 意为“感受……,对……有感受”。例如：The alternative is to invest in the stock market through unit trusts. With unit trusts, the investor can gain exposure to the stock market of his choice without going through the hassle of researching and constructing a diversified portfolio of stocks. 因此，他们可考虑投资单位信托基金，在无需花时间研究股市和建立多元化投资组合的情形下，就能参与股市投资。

10. “A” Shares：A股的正式名称是人民币普通股票。它是由中国境内的公司发行，供境内机构、组织或个人（不含台、港、澳投资者）以人民币认购和交易的普通股股票。

1. Describing China’s development

1) China has delivered several decades of double-digit growth.

2) Transition from agriculture into industrialized economy in China leads to enormous productivity gains.

3) Growth in the past has been driven by investment from other countries and China has typically been the largest magnet for FDI.

2. Asking for advice on investment environment

1) Do you think the country can sustain the performance?

2) How real and sustainable is the emergence of China as a platform for consuming demand?

3) China has an increasingly complex economy with a multitude of opportunities and sectors. Where do you see the best opportunities moving forward?

3. Introducing a consulting firm’s job description

1) We aim to help our clients develop their business by analyzing China’s market and offering local knowledge combined with a global perspective.

2) We always follow the schedule and closely communicate with you and keep updating the project progress and submit final deliverables with guaranteed quality.

3) We would like to develop a proposal tailored to your company’s needs.

1. Translate the following into Chinese orally.

1) China will explore various ways to put foreign capital to better use, such as acquisition, merging, investment fund and equity investment.

2) We should encourage both Chinese and overseas investors to invest in the central and western regions

3) Let’s get down to the business of establishing a joint venture. For instance, how much would your share of investment be in this venture?

4) Shall we hold another round of talk next week focusing on some technical problems?

5) Because direct foreign investment in China can maximize the strengths of all parties concerned, many overseas institutional and individual investors have found it more profitable to invest directly in China than to do trading business with Chinese companies

2. Translate the following into English orally.

1) 贸易自由化和便利化是我们缩小差距，实现共同繁荣的另一个关键。

2) 中央政府很重视全面对外开放，不仅开放沿海城市，也开放内地。

3) 中国幅员辽阔，自然资源丰富，劳动力低廉，税收低，消费者市场潜力大，社会环境稳定，投资政策诱人，经济回报率高。

4) 虽然上海、天津这些沿海城市仍然是许多外国投资者的首选目标，但越来越多的美国公司却纷纷涌入中国的内地省份。

5) 为鼓励外国直接投资，中国对外商投资企业外汇管理实行国民待遇。

1) Can you spell out some investment opportunities and challenges when investing in China?

3) What is the procedure for a foreign enterprise to enter into the Chinese market and is it important to refer to a consulting firm and why?

Find a partner and act the following roles according to the situation described：

You are Mr./Ms Lin, a Chinese business person

1) Introduce yourself and your business.

2) Enquire about his/her intent and respond with comforting expressions about favorable investment environment in China.

3) State benefits and things the other party needs to pay attention to.

You are Mr./Ms Jason, head of overseas market manager of an electronic company.

1) Introduce yourself and the business you are dealing with.

2) State the intent of tapping the huge Chinese market and lack of knowledge in local environment.

3) Express your gratitude and your general plan for new business in China.

Table manners always play an important role in making a positive impression. Specially these manners and etiquettes are much needed in formal functions and dinners. Here are formal dinner etiquettes that one needs to follow as a host or a guest.

● One should not place bags, cell phones, etc. on the dining table.● The napkin should be placed on the lap.

● The guests should not begin the meal before everyone’s served. The hosts, on the other hand, should begin eating when everyone is served as the guests follow the hosts.

● With a proper table setting, one should begin with the outermost cutlery and work one’s way in. If in doubt, follow the host.

● It is advisable to maintain a proper pace that matches with the rest of the diners while eating.

Of course, the bill or the check is collected by the host and dealt with discretion. It is also a proper business dinner etiquette for the host to pay for the business clients. In a uber-formal dinner, the gentlemen are expected to assist the ladies when they rise from the chair. Once the guests have left, the host must thank the waiter or the assistant in the hotel for the service and leave.