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How to Do Business in China
If you are a smart enough business man, you will not ignore the great potential profit in China’s market. After the entering of WTO, and the increasing holding of international events in China, the advantage will be enlarged. However, you will also need some special strategies when doing business in China.
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1. Building a network of relationships
In China, relationship and connection is everything. It is essential that your company establishes strong relationships with distributors as well as midlevel government bureaucrats, who often have great influence over policy decisions. Once trust is established with your key players, you will find that production, distribution, and advertising are easier to achieve.
2. Establish strategic partnerships
Many foreign businesses believe if they go to China, they need to get a deal--any deal--quickly. But the wrong deal in China can sink a business, and exclude it from other more lucrative partnerships. So learn to consider partnerships carefully and always think some problems from the angle of your Chinese partner. The rule: Don't try to do too much and too fast.
3. Sell solutions, not products
China is looking for products tailored to its market, so foreign firms that project a "take it or leave it" attitude will not succeed. You must examine the obstacles to technology in China (different character set, immature infrastructure, desire to control Net content) and adapt your products to overcome them.
4. Be flexible
It’s very important for all businesses. China's regulatory and legal environments are still immature and basic infrastructure is not readily in place. You must learn to manage change and accept the "fluid" business environment. You should also understand that it is incumbent upon you to maintain and revitalize relationships, even if things don't turn out as you expect.
5. Develop aggressive technology transfer strategy
The Chinese are very protective of the information technology market. While they welcome foreign firms, their goal is to make the domestic IT industry self-sufficient. Therefore, the government favors foreign firms to transfer technology. Chinese managers especially are looking for companies that are proactive, not reactive, which means that foreign firms' plans should include a constant flow of technology to domestic partners. In sum: you must think strategically not opportunistically.
Transfer from : China Service Mall - The worldwide greatest reservation center for China service
1. Building a network of relationships
In China, relationship and connection is everything. It is essential that your company establishes strong relationships with distributors as well as midlevel government bureaucrats, who often have great influence over policy decisions. Once trust is established with your key players, you will find that production, distribution, and advertising are easier to achieve.
2. Establish strategic partnerships
Many foreign businesses believe if they go to China, they need to get a deal--any deal--quickly. But the wrong deal in China can sink a business, and exclude it from other more lucrative partnerships. So learn to consider partnerships carefully and always think some problems from the angle of your Chinese partner. The rule: Don't try to do too much and too fast.
3. Sell solutions, not products
China is looking for products tailored to its market, so foreign firms that project a "take it or leave it" attitude will not succeed. You must examine the obstacles to technology in China (different character set, immature infrastructure, desire to control Net content) and adapt your products to overcome them.
4. Be flexible
It’s very important for all businesses. China's regulatory and legal environments are still immature and basic infrastructure is not readily in place. You must learn to manage change and accept the "fluid" business environment. You should also understand that it is incumbent upon you to maintain and revitalize relationships, even if things don't turn out as you expect.
5. Develop aggressive technology transfer strategy
The Chinese are very protective of the information technology market. While they welcome foreign firms, their goal is to make the domestic IT industry self-sufficient. Therefore, the government favors foreign firms to transfer technology. Chinese managers especially are looking for companies that are proactive, not reactive, which means that foreign firms' plans should include a constant flow of technology to domestic partners. In sum: you must think strategically not opportunistically.
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