BETTER EXPERIENCE
Ken Chen, business development manager of the HAND Enterprises Solutions USA Inc., said the business of his company suffered due to the U.S.-China trade dispute, but didn't disclose any specific figures.
"As a management software provider, we are indirectly affected by the dispute. We neither import and export commodities nor manufacture any goods, but our clients do. Importers shut off their doors because high tariffs rendered their operations non-profitable. Manufacturers slow down their investment or just ceased to invest because the dispute has led to uncertainty, which is the deadliest enemy to an industrial entity," said Chen.
Coming from Shanghai, he has consistently tapped the U.S. market for some 10 years and developed a clientele of some 40 factories and companies, including several top manufacturers of auto parts. When the clients withered, HAND, as a service provider, suffered losses.
"I believe it will go for the better in the medium to long term. Now is the time to maintain and beef up business ties with our existing partners, and target small- and medium-sized customers," he added.
Chen's parent company, one of China's largest IT consulting service providers based in Shanghai, started to design enterprise resource planning (ERP) systems in 1996. It now owns over 5,000 clients worldwide, with its market value peaking at 6 billion U.S. dollars and stabilizing at 1.4 billion dollars later.
"HUDDLE FOR WARMTH"
Apart from business giants like Tianhai and HAND, there are still a large number of small- and medium-sized Chinese enterprises and corporations operating in Michigan.
While the giants had their own resources and ways for survival and expansion, the small and medium ones opted to join hands, share cues and help each other, believing one plus one is bigger than two.
In mid-November, when the ground was covered with thick snow and icicles dropped off the eaves in Detroit, the China General Chamber of Commerce-USA Chicago (CGCC Chicago), a non-profit organization aiming to promote investment and trade between China and Midwestern United States, hosted a workshop for a dozen Chinese entrepreneurs running businesses in Michigan to hear advice from local lawyers, insurers and accountants.
Representatives from Grant Thornton, a global accounting firm; Hylant Insurance, a large U.S. insurance broker; and Locke Lord, a full-service law firm, briefed the Chinese entrepreneurs on U.S. taxation rules and policies, as well as risk management.
"In Chinese we say 'huddling for warmth.' This is why the workshop is held. When hard times prevail, weak ones are prone to be victimized. However, if they unite and count on each other, they get extra power to fend off the coldness and survive the adversity," Li told Xinhua.
Noting that the United States has more rules and regulations on enterprises than China, Liu Lei, deputy general manager of CAEA Automotive Electronic Systems (USA) Inc., the U.S. arm of China's Changjiang high-tech company, told Xinhua that the workshop was helpful as "we need to adapt to the requirements."
Charles Wu from Locke Lord cited several examples of how Chinese enterprises handled lawsuits in the United States.
"The trade disputes raised legal risks for enterprises on both sides. Cases have been on the rise as the disputes get prolonged," said Wu, who has been a lawyer for 16 years and served Chinese clients for six years.
Pan Guohua set up his Wellew Technologies in Michigan in May to provide IT and electric-mechanical installation service for Chinese enterprises. He then realized the risk and difficulty posed by the U.S.-China trade friction, but continued to get the mission done.
"Fierce competition and unfavorable conditions just can't thwart my passion. So long as you fulfill your job step by step, people will see it and you can earn respect and credit," said Pan.
