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Prepare,
Prepare, Prepare:
Companies must learn about the conditions for doing business in
China, cross-cultural differences that affect interaction,
negotiation or relationship building regardless of the entry
strategy they plan to use. These factors will impact the
abilities of any company to do business in China.
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Cultural
barriers and Opportunities: Companies need to understand that effective business and personal
relationships (Guànxì) are the essence of success in China.
These relationships must be built and they are not disposable
once a contract has been won.
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Commitment:
Companies are expected to demonstrate to the Chinese that they
are committed to helping develop the Chinese market in the long
term. Other foreign competitors are making this commitment and
are being well received by the Chinese.
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Understanding
and Adapting to Chinese Needs:
Companies that adapt their marketing and sales strategies to
help the Chinese meet important policy goals are more likely to
be well received. Important goals include investment, producing
foreign exchange, and providing technology and western
management skills.
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Aggressiveness:
Companies must pro-actively pursue opportunities, relationships
and contracts in China rather than waiting to be offered
opportunities by the Chinese.
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Quality
People:
Companies need human resources that understand China and Chinese
business conditions.
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Flexibility
and Patience: Companies
must understand that the Chinese way of doing business is often
slower than that in the United States or most other Western
countries. It takes time to build relationships, go through
intermediaries, satisfy Chinese negotiators at several levels,
and obtain countless approvals from several levels of
government. Companies may not achieve the fast results they may
hope for, but over time will obtain much more than they
expected.
