5 AWESOME TIPS YOU CAN TAKE WHEN DOING BUSINESS WITH CHINA
There’s a certain type of humor to what we have been working with the past 15 years in doing business with China. It almost feels like a full feature film. Different people, different circumstances, problems, different points of climax and resolution, but it’s always the same script and finale at the end of the day.
We have worked with a lot of companies and clients in a multitude of industries in our previous years of practice. They all had different how’s and why’s that they wanted the answers to; all of their business aspirations and the end results that they wanted to see realized was predicated on this ONE question:
“China feels like a completely different world. How can us as a Swiss company go about it?”
We completely understand, and we have been answering this question since we landed our first Swiss company in China. In the grand scheme of things, doing business with China seems daunting at first, but trust us when we say that the road for your business doesn’t end there. It’s a completely different world, and that means the way you get things done will all be different too.
Facing China’s culture is inevitable, it’s a certain realization that all aspiring foreign business owners have to face. It will be very frustrating to let go of all your Western defaults and sensibilities; but to stake your claim and establish a foothold in this ever growing economy will be worth it.
In this article, I will show you the steps you can take if you’re all about bringing your business to the second largest consumer market in the world. Keep in mind that there will be different cultural and logistical facets that will play a part as you go along of wanting to operate within China’s borders.
SPOILER ALERT: It’s so much more than finding and getting an investor when you'r eyeing to do business with China.
1. BE IN IT FOR THE LONG HAUL
With all the different types of clients we have worked with in the past, one thing they always have to prove is that money is not the main goal when doing business with China. It may sound counter-intuitive at first, but proving yourself that you’re not there to make fast money, can make you go a long way with doing business in China.
When you plan to expand your business to an economic juggernaut such as China, locals being wary of you is an inherent element in your first steps as an outsider. It is paramount that you pay attention to the signals that you send out to the community as you move along with the project you are working on.
The most successful strategy that we can share to you in this field is simple; collaborate. Collaboration is key and it’s one of the first great steps you can take as a foreigner for testing the waters of China. Reach out to those who have a great understanding of the vision, values and culture you have mapped out for your company, and of course, one that is heavily invested in your company’s deep-rooted success.
It is important that you have a good mindset when entering China. You have to display that you picture China not only as a conduit for better manufacturing methods, cutting your costs, and stacking your profits, but as a bridge for a mutual and nurturing alliance.
2. UNDERSTAND THE BIG CULTURAL DIFFERENCE AND ADAPT FAST
It’s easier than said and done and this is one of the MANY misconceptions westerners get when they attempt to establish a presence in China, and most often than not, they always learn the hard way. You have to understand one thing as an up and coming company in this ecosystem; you have to understand, adapt, and be one with China’s market because they will not be the one to do it for you. Understanding their puzzling culture of China is still one of the greatest struggles a company has in adapting to the Chinese market.
3. EXPECT A LOT OF POLITICS
It may sound a bit overly simplified, but it is true. Understanding the business landscape of China won’t be enough fuel for your business, one thing you can do is to study and to understand its political landscape too.
The Chinese are extremely hands on to everything that they’re working on; their government, and different governmental agencies are no exception.
There is nothing much you can do about this, but the most significant and relevant move you can make is to operate efficiently, and learn how you can navigate through the peculiar mix present in China’s economy at a micro and macro level.
4. “Guangxi” IS KEY
There is no direct English word for this, but this should be taken with a great understanding of the ways of the Chinese. In many countries, industries, and different cultures; one thing stays constant, and that is the importance of having a strong network. In China or in different Asian countries, the definition of relationships in business can be found in the extremes.
A powerful network, and strong ties are everything to the Chinese. The chinese system of “Guanxi” is still prevalent, influential, and paramount to the Chinese business culture.
Building relationships and fortifying your connections as you go along the business landscape of China is crucial to your success. WIthout any Guanxi, there will be little hope for you increasing your profits and having a fruitful and finding long-term success in China.
So focus on forming strong relationships first, and the success of your business will inevitably follow.
5. BE PATIENT, BE CONSISTENT, REPEAT
We cannot stress this enough, you have to be really patient if you want to see your business aspirations in China realized, and materialized. You have to accept that adversity will come your way, but you also have to understand that things will happen in a different order than the one you have in mind.
You as a company WILL NOT see the immediate realization of your success in the Chinese market. Industry giants, even China did not experience immediate and instant success in their own playing field, so expect some delays in finding success in China. Understand that some things just take time. So be consistent, be persistent, and success will come knocking at your door.
Companies who have found success in China have practiced this, it usually takes time to establish your presence, and be deeply-rooted and recognized in China. You will just have to wait and see.
So you see, doing business with China seems daunting at first, but with a good framework, proper guidance, and having a rock-solid mindset will drive you to the success that you crave for.
Without a shadow of a doubt, we here at SSBC see the long-term growth of the world’s economy will be coming from China. Its economy will continue to grow its markets with attractive prospects. It is well on its way to becoming the world’s powerhouse, and becoming a key player in a lot of industries for the coming years in the foreseeable future .
Swiss companies have always been known for their technology, innovation, and its overall market strength across a multitude of industries; notable industries are Biotechnology and with the vast sector of the ICT Industry.
A huge upside for these industries are prevalent, and a huge opportunity is clearly present.
One could argue that the synergy of the sino swiss relations will be phenomenal; and will take the world by storm.
