The People’s Republic of China comprises about a third of the world’s total population and is also the world’s third largest county by area. It is among the few remaining Socialist states in the world.
The country is divided into 33 administrative units; comprises of 22 provinces, 5 autonomous regions, 4 municipalities (Chongqing, Beijing, Shanghai, and Tianjin), and 2 special administrative regions (Hong Kong and Macau). The island province of Taiwan, which has been under separate administration since 1949.
China is poised to become the next economic super power owing to its increasing influence in global markets, fast economic growth fueled by technology and manufacturing industry, as well as massive pools of capital. Virtually all major OEMs have chosen China as their regional manufacturing hub on account of the cheap labor and the special support that the Chinese government provides via subsidized land and energy reserved for establishing industrial parks.
GlobalServe has extensive experience of serving its wide range of clientele in the domain of supply chain procurement, servicing and consultancy in China.
GlobalSserve has forged comprehensive alliances and partnerships with key Chinese IT suppliers and service providers to ensure one-window solutions for multinationals operating in this region. Since the country is often host to manufacturing sites of the global corporate giants; delivery time frames are short; normally 2 to 3 days across the country thanks to the well-developed transport and logistics infrastructure.
To facilitate the volume of exports, there are 52 ports in China across 13 major cities. China is home to the busiest container ports in the world.
Facts and Figures
– Due to ‘ASEAN Free Trade Area (AFTA)’ agreement by ‘Association of Southeast Asian Nations’, Trade Block Uplift and Duties is charged at five percent.
– Local taxes are charged at 17 percent on each order.
– Average hardware lead time is 15 days as per the year 2013-2014 GlobalServe annual report.
– Forward exchange rates are applied on monthly and quarterly basis, (provided by OEMs).
Chinese Trade Port Cities
Ports in China
|Port of Quanzhou
||Rocky Harbour (Hong Kong)
|Port of Xiamen
|Port of Guangzhou
|Port of Zhanjiang
||Tai Tam Harbour
||Three Fathoms Cove
|Haikou New Port
||Tsing Yi Tong
|Haikou Xiuying Port
||Port of Suzhou
|Port of Yangpu
||Changshu Xinghua Port
||Port of Dalian
|Aberdeen, Hong Kong
||Port of Jinzhou
|Container Terminal 9
||Port of Yingkou
||Kai Ho Port
||Macau Container Port
|Gin Drinkers Bay
||Port of Weihai
|Hongkong International Terminals Ltd.
||Port of Yantai
||Qingdao Qianwan Container Terminal
|Inner Port Shelter
||Port of Shanghai
|Kwai Tsing Container Terminals
|Long Harbour (Hong Kong)
||Port of Shenzhen
|Modern Terminals Limited
|Mun Tsai Tong
||Port of Tianjin
|Port of Hong Kong
|River Trade Terminal
||Port of Ningbo
Business Volume – GlobalServe’s largest Operating Country
Almost 80 percent of GlobalServe customers have offices and warehouses in China which makes her the busiest operating country in the GlobalServe 174 country delivery footprint.
Legal constraints related to USD currency
Thanks to its export prowess; China has garnered the world’s largest highest tally of foreign exchange reserves. This ever-increasing total had reached 3.44 trillion USD, as of May 2013; equal in value to Germany’s annual national income.
Opportunities are often shrouded by challenges. The major constraint faced by business entities with operation in China, are restrictions on outbound transactions based in United States Dollars (USD).
Go Global Solution / Go Out Policy
China has taken a lesson from the rise of the Asian Tigers including South Korea, Japan and Taiwan. The country’s largest business conglomerates have invested heavily into acquiring the world’s leading brands such as electronics brand TCL. This is “go out” or “go global” strategy adopted by China has emanated from the country’s plentiful reserves of foreign currencies.
TCL bought the European brand “France’s Thomas” and increased its foot print massively like other international brands, i.e. Samsung (S. Korea), HTC (Taiwan) and Sony (Japan).
GlobalServe Support for Multinationals Operating in China is Comprehensive
GlobalServe Chinese operations are well established and we continue to capitalize on its biggest strength of strong and growing revenue stream. One prominent factor is that GlobalServe can select the very best of the best I.T partners with variety of dynamics to cater to all kinds of customer needs.
In view of the ever-increasing role of China in global manufacturing, China is an integral and often dominant factor in supply chain strategy.
GlobalServe International IT Procurement
GlobalServe clients save 15% on their international IT procurement of laptops, desktops, tablets, servers, network equipment, point of sale terminals and cameras and av/teco equipment.
GlobalServe’s 174 country network of 494 contracted, OEM-authorized reseller-service providers delivers in-country equipment for a maximum 5% markup vs. the 15% – 25% typically charged. These top resellers do this to participate in GlobalServe’s substantial business flow. GlobalServe manages the entire process for a 3% markup. The net savings for our customers average 15% – without having to change OEM vendors.
Even the largest companies can save 15%. One of our clients has over $300 billion in revenues, many are $1 billion and up, but companies who purchase as few as 10 laptops internationally a year can benefit.
Beyond Saving 15% – GlobalServe improves your supply chain SLA performance.
GlobalServe simplifies your global IT procurement supply chain to make it better and faster, as well as cheaper. We create a customized portal for just the hardware you want to offer and provide easy to use, secure access for your employees. They can price – in any currency – and order any of your approved gear for delivery in literally any country in the world.
The GlobalServe system automatically calculates currencies, taxes and other charges. We keep your portal up to date on an ongoing basis, eliminating orders for out-of-date equipment. You get robust reporting on every asset from every manufacturer in every location. You capture maximum discounts and automatically track transactions for VAT and other taxes. You can even customize GlobalServe with SLA parameters that are tuned to your organization’s needs.
Once an order is placed, GlobalServe’s best-in-world supply chain services carefully guide the order to deployment. Our system proactively monitors orders and alerts our 24/7/365 Service Operations Group when a risk arises that could breach an SLA. We take the necessary proactive steps to get the equipment onsite to meet the SLA. When necessary, we have even procured equipment from another country and GlobalServe covered the required import fees and taxes – all to meet the SLA. All to keep your supply chain running smoothly.
You can actually reduce expenses while improving the SLA performance for your international orders. Our customers tell us that beyond the direct 15% savings, they appreciate the savings they generate from the efficiency of the GlobalServe process – they waste fewer human resource cycles chasing problematic international orders and multiple vendors. They can keep the costs to administer the supply chain to the barest minimum through simplification with Globalserve, while upgrading the IT procurement reliability for their organization.
Additional Vendors Can Be Supported by GlobalServe upon your Request.
You can save 15% on international orders for hardware and software.