Q:
As a U.S. design firm looking to do work in China, do
we need to have an office in China?
A:
The answer depends on what your long-term objectives
are in China. Three possible objectives could be:
1. Only to provide design
concept/consulting services to U.S. clients working
in China
2. Provide design concept/consulting services to Chinese
clients
3. Provide architectural/engineering design services
in China for U.S. or Chinese client
In the first instance, an office
in China would not be necessary. In this scenario, you
may periodically take trips to China for site visits or
to meet with local design team members, but have no actual
presence in China. All contracts would be between you
and your domestic client for services provided from the
U.S. Actual design documents would be prepared by others.
You would simply be acting as a consultant on design issues.
In the second instance, an office in China may not be
necessary, yet could be of benefit in developing better
relationships with your Chinese clients. Again, by not
having an office in China, all contracts would be between
your U.S. office and your Chinese client, design documents
would be prepared by others and your role would be that
of a consultant on design issues. In this scenario you
may still want to open a “representative” office
in China to help in maintaining client contact and developing
new business.
In the third scenario, an office in China would be necessary
for client service as well as compliance with Chinese
law. Because the laws are changing concerning when a representative
office, a joint venture with a local firm or the establishment
of a wholly foreign-owned investment enterprise is appropriate,
seek the advice of an attorney experienced in Chinese
business law for design firms.
Thanks to Randolph W. Tucker, P.E., who is executive
vice president of The RJA Group Inc., a global fire
protection and security consulting firm that has worked
on construction projects in more than 60 countries.
The RJA Group's Rolf Jensen & Associates Inc. subsidiary
has established a representative office in Shanghai
and plans to open a second location in Beijing by mid-2004.
He can be reached at rtucker@rjagroup.com.
To
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Schriener, construction.com editor-in-chief,
at judys@mcgraw-hill.com.
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To
submit questions for our experts, please e-mail Judy
Schriener, construction.com editor-in-chief,