HOW TO DO BUSINESS IN CHINA PART 1

Practical Advice on How to Do Business in China

China is the new land of opportunities. It has risen quickly to the world business scenario with its marvelous strategy in the manufacturing segment. The strategy has yielded China with a leader position in the manufacturing paradigm. On the global business platform, China has very intelligently secured its place as the largest exporter so much so that half the things you are using in daily life may have written “Made in China” over them. This however may cause mixed feelings in respect of the customer satisfaction level but has been an overwhelming business situation.

Besides, it has emerged as a heaven for foreign investors especially from West, who can set up and flourish their old/new businesses hubs here. For this reason a lot of businessmen are drawn to do business in or with China. A great number of multinational companies have their manufacturing unit setups in the Mainland China only, although the businessmen tend to have mixed experience because of their preparation and understanding level of the China. It is highly convenient and profitable if a thorough thought is put on the reasons of China being on such position and of course you will be calculating everything related to the business you are interested to opt here.

Now the first thing to understand is why China has acquired such a position. Most people credit it to the setting up of the special economic zones (SEZs). They keep Shenzhen in mind and remember it is not all. Besides the impeccable strategy Chinese used, the peculiar macro-economic situations build around the time also helped them.

 

How to Do Business in China

Now with a sufficient idea of China there are various matters which should be looked into. These issues range from complying with the cultural identity to business ethics. It is the quite obvious that for entering into a business contract with the people of China, the foreign businessmen especially the Westerners first need to get accustomed with both – the Chinese culture and business norms. This e-book is specially aimed to create an understanding for the same in a concise yet comprehensive manner, so that the moment you land in this land of opportunities, you are not lost or deprived from your due share, but become successful by staying well informed beforehand.   This brief practical guide is here to get the most out of your businesses in China from the day one.

Practical Advice 1: Think about “what factors have made you decide to do Business in China?”

Before formally moving towards the practical advices of doing business in China, I would like you to probe "why you really want to have your business presence in China"? In fact, it's a very logical question which should not be skipped due to the "enthusiasm" factor.

  • Are you interested in selling your products/services in China’s dynamic consumer market?
  • Are you intending to purchase a product from China to later sell in your homeland with the purpose of profit maximization?
  • In case both questions are in affirmative, then proceed with the third question which is “How you consider this business feasible for you? What actually makes you believe that you can have a good place in your marketing because of selling in China? What is the core reason that you find as a good evidence to import the desired product from China?
  • Have you really conducted a feasibility survey and made any report in the same context?

Well, let me elaborate, why I am concerned that you should ask those questions to yourself first.

Various foreign investors find in necessary to have their presence in China because it’s the global trend or better to say global business race where almost every big industry has established its business base here. Obviously they relate this presence to the factors like exclusive market potentials and global competition. But this is merely overestimation of the facts because they fail to realize how much effort and sacrifice is demanded in setting up a manufacturing unit far away from home. But still many do so and as a result end up committing those shocking mistakes, which they never had even imagined in their home grounds. Please be aware of differences between doing business in China and your home country. So if you already ticked all the boxes and you think you are ready for the journey, now is time to study about China and Chinese culture.

Consider it as my first advice prior to planning for your entry in China for business purposes.