Telecommunications costs
For cellphones, GSM and CDMA networks are used.
Setting up a basic telephone service account usually takes between 10 and 40 days. Monthly fees vary, but are normally between RMB 30-35 (US$3.60-US$4.20) which usually includes a basic monthly fee, a local government charge, a maintenance charge and number listing charge.
High-speed internet access is growing fast, including ISDN, ADSL, LAN-based broadband access, cable modem and cellphone.
Staff costs
Representative offices have to fill their staffing needs through government-affiliated agencies which are happy to sign up any staff that companies propose, or to act as recruitment agencies. The agencies are a convenient way of handling staff.
Wholly foreign-owned enterprises (WFOEs) are able to employ staff directly.
Word of mouth still remains one of the main methods for locating and recruiting staff.
Remuneration packages include a monthly salary, annual or bi-annual bonuses, overtime payments and employer and employee contributions to mandatory taxation and social welfare.
In 2006 Shanghai’s minimum wage was RMB 690. Average monthly salaries were:
- RMB 800-1200 for a manual worker
- 2000-4000 for skilled production workers
- 10,000 upwards for people in line management positions.
Senior managers command salaries comparable or in excess of those paid in New Zealand.
Regulations
In broad terms, businesses can set up in China as:
- a representative office a rep office can carry out market research and project investigation for the parent company, however no trading or invoicing is allowed
- a wholly foreign owned enterprise a WFOE is established entirely with foreign capital, under total foreign control
- a joint venture foreign partners must contribute at least 25 percent of the capital.
