Monday, 30 January 2012

If you are planning to do business with the Chinese, here are some winning strategies

  • Approach China not as one market, but as several very different ones.
  • Cultivate relationships on a province by province, city-by-city basis.  Having said that, when dealing with local authorities you must ensure that they are indeed empowered to authorize the relevant agreements and contracts.  In their enthusiasm to attract foreign capital, lower level government officials have been known to overstep the bounds of their jurisdiction.
  • Find the right Chinese partner with the right connections, or work through a Hong Kong company with good contacts and track record in China.
  • Don't wait for everything to become crystal clear.  It may never happen.  Take a calculated risk - plant "seeds" you can nurture and develop in line with the changing business scenario in China.
  • Consider carefully the level of resources you are prepared to commit to China.  Decide whether you want to treat it purely as an export market, or establish a manufacturing facility.  Decide whether you want to appoint a buying agent or set up your own on-the-ground presence.

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