Unit 3 Establishing Business Relations Teaching Objectives:  Knowledge Requirements: 1 To enhance students’ awareness of the three major channels to find new customers & establish business relations ； 2 To enable students to become familiar with structural parts and main contents of letters for asking to establish business relations and replies ； 3 To enable students to familiarize themselves with the specimen letters given.  Competence Requirements: To skillfully write structural parts and main contents of letters for asking to establish business relations and replies with conventionalities;

Part One Channels to Find New Customers Establishing business relations with prospective dealers is a primarily important step before a transaction in international trade either for a brand- newly established firm or an already established one that strives to enlarge its business scope and turnover. Spreading trade relations greatly and arranging market network particularly are necessary for exporting commodities and importing advanced equipment, key materials and other commodities needed domestically. Thus, it becomes a priority for dealers to find partners before international transactions.

But how could a dealer or businessman secure all necessary information about a brand-new market or prospective business partners? Usually a dealer or businessman may approach its new business counterparts abroad or obtain necessary information through any of the following three channels, i.e., ‘Introduction from a Third Person’, ‘Multimedia or Mass Media’ and ‘Self-Assisted Efforts’, for detailed information see the following table:

Part Two Letters for Establishing Business Relations Having approached its new business counterparts abroad or obtained necessary information about prospective dealer through any of the above- mentioned channels, it is the time to discriminate and select among prospective dealers, and then write only to those with sound financial standing and credit rating. In writing to a prospective dealer to establish business relations or in its replying, as an exporter, or an importer, what should we mention or emphasize in the letter respectively?

Analysis of writing to establish business relations and its reply may help reinforce and strengthen your impression and understanding of the structural parts of writing for the establishment of business relations and those of its replies.

2.1 Structural Parts of Writing to Establish Business Relations & Replies Analysis of Specimen Letters: Importer’s Letter for Establishing Business Relations and Reply (See the following tables)

Upon the above analysis, we may come to the impression and conclusion that: Structural parts of letters for establishing business relations consist of the following four sections: Section 1: Refer to the source of general information related to the addressee (such as name and address); Section 2: Indicate clearly the intention of the letter; Section 3: Introduce your firm briefly, such as the business scope, branches or liaison offices if any, financial standing and credit rating, etc. Section 4: Express sincere hope and cordial expectation for future business cooperation and a prompt favorable reply. Sometimes the terms of sales or purchases are mentioned with catalogues, price lists and other details enclosed for reference.

While structural parts of replies to letters for establishing business relations can be sketched as the following corresponding four sections: Section 1: Make the reference clear and respond favorably or unfavorably, positively or negatively; Section 2: State your reactions to their attempt or request; Section 3: State or ask the proposed method of payment or quality discount allowed if necessary; Section 4: Broaden customer’s interest by submitting additional information, or encourage/maintain possible future business or further trade.

2.2 Skills for Writing Structural Parts of Letters for Establishing Business Relations The four structural parts of letters for establishing business relations are courteous, concise and complete enough in keeping the addressee informed of the source of the writer’s general information, intention, business scope, reference as to the financial position, credit rating and integrity, etc., and the writer’s expression of sincere hope and cordial expectation for future business cooperation and a prompt favorable reply till the end of the letter. If the writer intends to purchase for import rather than for export, he/she may also make clearly, concisely but simply his/her requests for samples, catalogues or sometimes for illustrated ones, latest pricelists, and information on the terms of sales or payment, etc. Any letter of this nature received must be answered in full without the least delay and with courtesy so as to create goodwill and leave a sound impression on the addressee.

Since business connections are of vital importance to firms engaged, dealers must not only complete what they can to consolidate their established relations with firms having previously engaged but also strive unswervingly and continuously to develop and revitalize or rejuvenate their trading relations by seeking new engagements. The following statements might offer you a panoramic view together with an all-round perspective and thus facilitate your understanding and writing of structural parts of letters for establishing business relations:

Section 1: Refer to the source of general information related to the addressee, such as their name and address, telephone numbers, address or fax, etc. e.g.  We are given to understand that…  We have obtained your name and address from…  We are indebted to…for your name and address.  Your firm has been recommended to us by the Chamber Commerce (or Bank of …) in…  On the recommendation of…, we have learned with pleasure the name and address of your firm.  We take the liberty of writing to you with a view to doing business with you.

 Through the courtesy of…, we come to know that you are one of the leading importers of … chemicals and pharmaceutics in your country ．  We learned from the Commercial Counselor’s Office in your country that you are interested in Chinese handicraft.  We have learned by courtesy of Mr. Green that you are one of the leading importers of Chinese chemicals and pharmaceutics in your country ．  Having had your name and address from the Commercial Counselor’s Office of the Embassy of … (country’s name) in your country, we now avail ourselves of this opportunity to write to you and see if we can establish business relations by the commencement of some practical transactions.

Section 2: Indicate clearly the intention of the letter e.g.  We are writing to you to establish long-standing business relations with you.  It is hoped that by our joint efforts we can promote business as well as friendship.  In order to enlarge our business scope, we are writing to you to seek possibilities of coop.  We thank you for your letter offering your services and should like to discuss the possibility of expanding trade with you.  We are willing to enter into business relations with your firm on the basis of equality, mutual benefit and exchanging what one has for what one needs.  Being specialized/ Specializing in the export of Chinese art and craft goods, we express our desire to trade with you in this line.  We are one of the leading exporters dealing with electronic products in the area and take this opportunity to approach you in the hope of establishing business relations.

Section 3: Introduce your firm briefly, such as the business scope, branches or liaison offices if any, financial standing and credit rating, etc. e.g.  We specialize in the exportation of …  We are a leading export company for textiles with many years’ experience.  Our company deals with (handles, deals in, trades in, is in the line of) the import and export of …  We are one of the largest… importer in our country and have handled with various kinds of the products for about … years.  We have the pleasure of introducing ourselves to you as a state-operated corporation dealing exclusively in light industrial goods.

Section 4: Express sincere hope and cordial expectation for future business cooperation and a prompt favorable reply e.g.  We are looking forward to your early/prompt/ favorable reply.  We shall be grateful if you would reply at an early date.  Your best coop will be highly appreciated.  Our mutual understanding and cooperation will certainly result in important business.

NOTE: Sometimes the terms of sales or purchases are mentioned with catalogues, price lists and other details enclosed for reference. If the writer intends to purchase for import rather than for export, he/she may also make clearly, concisely but simply his/her requests for samples, catalogues or sometimes for illustrated ones, latest pricelists, and information on the terms of sales or payment, etc. and it is up to the writer to just do it the other way.

e.g.  Enclosed you will find a copy of our export list showing the main items now available for your reference.  To give you a general idea of our products, we are airmailing you under separate cover our catalogue for your reference.  To acquaint you with the light industrial goods we handle, we are sending you, by separate airmail, a commodity list and several sample books for your reference.  In order to give you some idea of various qualities of handicrafts we carry, we have pleasure in forwarding you by airmail one catalog and a few sample books for your perusal.  We are sending you by airmail a brochure on the various kinds of electronic products now available for export.  As requested, we are airmailing to you, under separate cover, a sample of Art. No 1101 and No 1102 for your reference.

2.3 Skills for Writing Structural Parts of Replies to Letters for Establishing Business Relations Replies to letters for establishing business relations should be submitted courteously, sincerely, cordially and promptly as well. The following statements might offer you respective reference to your writing of four corresponding structural parts of replies to letters for establishing business relations.

Section 1: Make the reference clear and respond favorably or unfavorably, positively or negatively e.g.  We thank you for your letter of … expressing your desire to trade with us direct, which coincides with ours.  With reference to your letter of June 27, we are glad to learn that you wish to enter into trade relations with us, which also meets our interest.  As the item falls within the scope of our business activities, we shall be pleased to enter into direct business relations with you.  However desirous we are of establishing business relations with you, we regret being unable to do so as our previous commitments prevent us from doing so.  Much to our regret, we are unable to do business with you direct, as we have been represented by Messrs…. in your city.  Please accept our regret for having to decline your request for establishment of business relations with us as the items named in your letter have been exhausted.

Section 2: State your reactions to their attempt or request e.g.  In compliance with your request, we are sending you, under separate cover, our latest catalogue and price list covering our export range.  Under separate cover, we are sending you a range of samples and we feel confident that you will agree that the goods are both excellent in quality and reasonable in price when you have a chance to examine them.  We have much pleasure in enclosing a quotation sheet for our products and trust that their high quality will induce you to place a trial order.  If you can assure us of workable prices, excellent quality and prompt delivery, we shall be able to deal in these goods on a substantial scale.

Section 3: State or ask the proposed method of payment or quality discount allowed if necessary e.g.  Payment should be made by irrevocable and confirmed letter of credit.  Payment should be made by irrevocable letter of credit payable against draft at sight.  We are also interested in your terms of payment and in discounts offered for regular orders.  If you can reduce your price by 5%, we trust there is every possibility of bringing about business.

Section 4: Broaden customer’s interest by submitting additional information, or encourage/ maintain possible future business or further trade e.g.  Should you wish to place an order, please or fax us.  We are awaiting/ looking forward to your favorable reply.  If your prices are reasonable, we are sure we can conclude substantial business with you.  If you find the price agreeable, please cable us immediately.

2.4 Specimen Letters for Establishing Business Relations & Replies  Letters for Establishing Business Relations Specimen Letter 1: Exporter’ letter to Importer

Dear Sirs, We have your name and address through the introduction of Mr. E.W. Worth of Swan & Bros. (Hong Kong), who is one of our old clients. We wish to inform you that we specialize in exporting chinaware and shall be pleased to enter into business relations with you. If our above desire coincides with yours, please let us know and keep us informed as well of your specific enquiries so that we could be in a position to send our illustrated catalogue and latest pricelist for your reference without the least delay. Meanwhile, it shall be much appreciated if you could furnish us with the name of your bank prior to the conclusion of an initial transaction between us. Looking forward to receiving your first enquiry, we are. Yours sincerely ……

Specimen Letter 2 ： Self-Introduction of Business Operation Dear Sirs, RE: TABLECLOTH We have your name and address from the Commercial Office of British Embassy in China. We take this opportunity to write to you with a view to set up friendly business relations with you. We are a state-operated company specializing in the export of tablecloth for over 20 years. We are presently in a position to accept orders according to customer’s samples. In the customer’s samples, requests about the assorted pattern, specification and package of the needed goods can be indicated particularly.

In order to give you a general idea of various kinds of the table-cloth we are handling, we are airmailing you, under separate cover, our latest catalogue for your reference. Please keep us posted if you are interested in our products. We will send you our pricelist and sample to you as soon as we receive your specific inquiry. Your favorable reply will be highly appreciated. Yours faithfully, ……

Specimen Letter 3: Manufacturer’s Letter to a Potential Agency Dear Mr. Wellington: At the beginning of October, I attended the Guangzhou trade fair. While there, I had an interesting conversation with Mr. Douglas Gage of Edutoys Plc about selecting an agency for our teaching aids. Douglas described your dynamic sales force and innovative approach to marketing. He attributed his own company’s success to your excellent distribution network which has served him for several years. We need an organization like yours to launch our products in the UK. Our teaching aids cover the whole field of primary education in all subjects. Our patented ‘Martyr’ math apparatus is particularly successful. You may have reservations about American teaching aids suiting your market. This is not a problem since we have a complete range of British English versions.

Enclosed you may find an illustrated catalogue of our British English editions for your information. Please let me have your reactions to the material and keep us informed if you are interested. I shall be in London during the first two weeks of November. Perhaps we could arrange a meeting to discuss my proposal. For our credit standing, please refer to the following bank: The Bank of China, Shiyan Branch, No. 88 Remmin Road, Shiyan City, Hubei Province, PRC Yours faithfully, Edward Raymond Marketing Manager

Specimen Letter 4 The Grand Resources Corp. Ltd 16 Liangma Road, Chaoyang District, Beijing , China Tel: Fax: October5, 2005 Dear Sir: Through the courtesy of our Commercial Counselor’s Office in London, we come to know the name and address of your firm. We notice that you are interested in establishing business relations with China. Our company specializes in exporting metal and mineral products to various foreign countries. We wish to enter into business relations with you by the commencement of some practical transactions.

To give you a general idea of the various kinds of our products available now for export, we are enclosing here a catalogue and a price list for your reference. Should you find interest in our items, kindly let us know. We shall be pleased to give you our lowest quotations upon receipt of your detailed requirements. We look forward to receiving from you specific enquires Yours faithfully, ……

 Replies to Letters for Establishing Business Relations Specimen Letter 5 Dear Sirs, With reference to your letter of April 13th, we are glad to learn that you wish to enter into trade relations with us, which also meets our interest. To give you a general idea of our products, we are sending you by airmail a catalogue showing various products being handled by this corporation with detailed specifications and means of packing. Quotations and samples will be sent upon receipt of your specific enquiries.

As we have not had the pleasure of doing business with you in the past, we would like to inform you that our goods for export are to be inspected by the Shanghai Commodity Inspection Bureau before shipment, and necessary certificates in regard to the quality and quantity of the shipment will be provided. We are looking forward to your early reply. Yours faithfully, ……

Specimen Letter 6 Dear Sirs, Your letter of Dec 21st addressed to our sister corporation in Shanghai has been transferred to us for attention. As the items fall within the scope of our business activities, we shall be pleased to enter into direct business relations with you. We have learned that you are one of the leading importers and wholesalers of electric and electronic machinery and equipment in Tanzania. We are exporters of the same lines of business with a relative background for about 30 years, and are now particularly interested in exporting to your country electronic products of all types. All kinds of our products are good sellers and worth commendation for their excellent quality. If you are interested in marketing these products at your end, pleased let us know and we shall be pleased to send you our quotations and sample books upon receipt of your specific enquiries. We look forward to your favorable reply. Yours faithfully, ……

Summary Establishing business relations with prospective dealers is a primarily important step before a transaction in international trade either for a brand- newly established firm or an already established one that strives to enlarge its business scope and turnover. Thus, it becomes a priority for dealers to find partners before international transactions. Usually a dealer or businessman may approach its new business counterparts ( 对应或对等的人或物 ) abroad or obtain necessary information through any of the following three channels, i.e., Introduction from a Third Person, Multimedia or Mass Media and Self-Assisted Efforts.

Having approached its new business counterparts abroad or obtained necessary information about prospective dealer through any of the above- mentioned channels, it is the time to discriminate and select among prospective dealers, and then write only to those with sound financial standing and credit rating. Structural analysis of writing to establish business relations and its reply may help reinforce and strengthen your impression and understanding of the four structural parts of writing for the establishment of business relations and those of its replies. Specimen letters, useful words and expressions and conventionalities for writing to establish business relations and their replies may service as reference or guidelines for skillful practice in this field.

Exercises Directions: Complete the following letter with the phrases and sentences given ：  enter into business relations with you  we are sending you by separate airmail a copy of our latest catalogue  Learning from the Commercial Counselor’s Office of our Embassy in your country  specializing in the export of canned goods

Dear Sirs: 1 that you are one of the leading importers of canned foodstuffs, we have the pleasure of introducing ourselves to you as a state corporation, 2 and express our desire to 3. In order to give you a general idea of our canned goods, 4. Quotations and samples will be sent to you upon receipt of your specific enquiries. We are looking forward with interest to hearing from you. Faithfully yours, ……

Answer: 1 Learning from the Commercial Counselor’s Office of our Embassy in your country 2 specializing in the export of canned goods 3 enter into business relations with you 4 we are sending you by separate airmail a copy of our latest catalogue

Directions: Rearrange the following letter logically with the sentences given ：  We wish to establish business relations by the commencement of some practical transaction.  A copy of your letter to that effect has been handed to us.  At the same time we want to know your details and prices of various kinds of goods you would be interested in selling.  Any specific enquiries from you would be appreciated.  We look forward to receiving from you good news.  We would be glad to study the sales possibilities in our market.  The Commercial Counselor’s Office of the Embassy of your country in China has conveyed to us your desire and proposal to establish business relations with the Foreign Trade Corporation of China.  To give a general idea of the various kinds of textiles now available for export, we are enclosing herewith a catalogue and a price list for you examination.  Our lines are mainly textiles.

Answer: Gentlemen: 1The Commercial Counselor’s Office of the Embassy of your country in China has conveyed to us your desire and proposal to establish business relations with the Foreign Trade Corporation of China. 2A copy of your letter to that effect has been handed to us. 3Our lines are mainly textiles. 4We wish to establish business relations by the commencement of some practical transaction. 5To give a general idea of the various kinds of textiles now available for export, we are enclosing herewith a catalogue and a price list for you examination. 6Any specific enquiries from you would be appreciated. 7At the same time we want to know your details and prices of various kinds of goods you would be interested in selling. 8We would be glad to study the sales possibilities in our market. 9We look forward to receiving from you good news. Faithfully yours, ……

Directions: Translate the following sentences into Chinese. 1) Having had your name and address from the Commercial Counselor’s Office of the Embassy of the People’s Republic of China in your country, we now avail ourselves of this opportunity to write to you and see if we can establish business relations by the commencement of some practical transactions. 2) As requested, we are airmailing to you, under separate cover, a sample of Art. No 1101 and No 1102 for your reference. 3) We are one of the leading exporters dealing with electronic products in the area and take this opportunity to approach you in the hope of establishing business relations. 4) We have been engaged in handling importation and exportation of machinery and equipment for many years. Our products enjoy great popularity in many countries. 5) Our wool sweaters are exclusively made from quality export- grade Australian pure new wool, which has unique features giving natural warmth and comfort with proper elasticity and soft feeling.

1 从驻贵国的中华人民共和国大使馆商务处获知贵方名称 和地址，我方荣幸致函，以期通过几宗实际的交易来建 立业务联系。 2 依据贵方要求，我方已分别寄送产品号为 1101 和 1102 的 样本，以供参考。 3 我公司是该区电子产品的主要出口商之一，我们借此机 会与贵方接洽，希望与贵方建立贸易关系。 4 我公司经营机械设备的进出口业务已多年，我们的产品 在许多国家享有盛誉。 5 羊毛衫完全采用澳大利亚高质量、出口级的新羊毛制成。 这种羊毛衫弹力适中，手感柔软，以其独特的品质给人 以自然的温暖和舒适感。

6) We are willing to enter into business relations with your firm on the basis of equality, mutual benefit and exchanging what one has for what one needs. 7) In order to give you some idea of various qualities of handicrafts we carry, we have pleasure in forwarding you by airmail one catalog and a few sample books for your perusal. 8) If any of the items listed in the catalogue meets your interest, please let us have your specific enquiry, and our quotation will be forwarded without delay. 9) We have the pleasure to introduce ourselves to you with the hope that we may have an opportunity of cooperating with you in your business extension. 10) We are given to understand that you are potential buyers of Chinese machine tools, which comes within the frame of our business activities.

6 我方愿在平等互利、互通有无的基础上与贵方建立业务 联系。 7 为使你方对我方各自款式的手工艺品有一初步了解，今 航邮奉上我方目录和一些样品，供你方参考。 8 若你方对目录所列任何产品感兴趣，烦请告知具体询价 商品，我方即行奉上报价。 9 现有幸自荐，盼望能有机会与贵方合作，拓展业务。 10 据了解，贵方是中国机床的潜在买主，而该产品正属 于我方经营范围。

Directions: Translate the following sentences into English. 1) 日本东京商会已向我们推荐贵公司。 2) 我们专门出口中国工艺品，愿与贵方开展这方面的业务。 3) 现有幸自荐：我们是国营公司，专营轻工产品。 4) 根据贵公司 1 月 20 日来函要求，现附寄目录一份。 5) 谢谢你方来函表示愿意提供服务，我方愿与你方就扩大贸易的可 能性进行讨论。 6) 为使你方熟悉我方经营的轻工产品，另封航邮寄上商品目录和一 些样品，供你参考。 7) 现航邮寄上我方各类电子产品目录册，所列商品均有现货以备出 口。 8) 殷切地盼望早日来函。 9) 贵方诚致我方出口公司之函，已转呈我部受理。 10) 承蒙中国洛兹有限公司，使我公司知悉贵公司的名称和地址。

1) Your firm has been recommended to us by the Chamber Commerce in Tokyo, Japan. 2)Specializing/Being specialized in the export of Chinese art and craft goods, we express our desire to trade with you in this line. 3) We have the pleasure of introducing ourselves to you as a state-operated corporation dealing exclusively in light industrial goods. 4) As requested in your letter of Jan. 20, we enclose a copy of catalogue. 5)We thank you for your letter offering your services and should like to discuss the possibility of expanding trade with you. 6)To acquaint you with the light industrial goods we handle, we are sending you, by separate airmail, a commodity list and several sample books for your reference. 7) We are sending you by airmail a brochure on the various kinds of electronic products now available for export. 8) We are looking forward to your early (prompt) reply. 9) Your letter of May 7 addressed to the Import Company has been passed on to us for attention. 10) Through the courtesy of China Rouse Co. Ltd., we come to know your name and address.

Directions: Translation the following letter into Chinese. Dear Sirs ： With reference to your letter of May 4, , we are glad to learn that you wish to enter into trade relations with this corporation in the line of canned goods. In compliance with your request, we are sending you by air a catalogue together with a range of pamphlets for your reference. If any of the items listed in the catalogue meets your interest, please let us have your specific enquiry, and our quotation will be forwarded without delay. In the meantime, you are requested to furnish us with the name of your bank prior to the conclusion of the first transaction between us. We look forward to receiving from you good news. Faithfully yours, ……

Answer: 敬启者： 关于你方 200X 年 5 月 4 日来信，我们很高兴知道贵公司 想在罐头食品业务方面同我们建立业务关系。 按照你方要求，我们用航空寄上目录一本，并附一套小 册子，供你参考。 如果目录中所列的任何商品符合贵方要求，请具体询价， 我方将立即寄上报价单。 同时，在第一笔生意做成之前，请将你们银行的行名告 诉我们。 敬候佳音！ 致礼！ …

Directions: Write an English letter to a foreign company for establishing business relations covering the following contents and you may add a subject line and attention line for the letter. 1) Information source and intention: 我方从驻贵国的中华人民共和国大使馆商务处获知贵方 名称和地址，且了解到贵方有意进口出国纺织品，现荣 幸致函，以期通过几宗实际的交易来建立业务联系。 2) Firm’s business scope 我方专门经营中国苏州的丝绸制品出口业务，此类产 品品优质佳，价格合理；并随函附寄目录表、样品及最 新价格单一份，仅供参考。 3) Firm’s financial standing 公司资信证明人：中国银行十堰分行 4) Expectation or sincere hope for future business 如有意，请即与我方联系，速复为盼。

Answer: Dear Sir or Madam ： Sub: Establishment of Business Relations with You Through the courtesy of the Commercial Counselor’s Office of the Embassy of the People’s Republic of China in your country, we come to know your name and address and learned that you are in the market for importing Chinese textiles. We now avail ourselves of this opportunity to write to you and see if we can enter into business relations with you by the commencement of some practical transactions. We are exporters dealing mainly in silk products processed in Suzhou, China, with high quality and reasonable prices. We are also airmailing you, under separate cover, a catalogue, and our latest pricelist together with some samples for your reference / study. For any information concerning our credit standing, please refer to the following bank: The Bank of China, Shiyan Branch. If any of the items listed in the catalogue meets your interest, please let us have your specific enquiry, and our quotation will be forwarded without delay. We await your prompt reply. Sincerely yours, ……