Are you interested in starting a business in China? Are looking to import from China? Do you want to tap into the business opportunities in China? Then here’s a detailed guide on how to do business in China.
China has made a name for itself in the recent years with respect to national and economic aspects; that is why businessmen worldwide are roaring to have their businesses there. Almost every Fortune 500 company is well established in China; from Apple, Microsoft, Oracle and Google, to Nokia, HP and Facebook. With a population of over one billion and a fast growing economy; China is definitely the next best place to situate and open a business. Now for those who are clueless on how to tap into this opportunity, here are some pointers on how to do business in China:
4 Challenges of Doing Business in China
- Language difference
- Cultural difference
- Finding Manufacturers that are technically capable of producing your quality standard
- Timing and loyalty
How to overcome the challenges of doing business in China
- Be Prepared: – Read books about the Chinese, their business culture and attitudes. This will help you understand your Chinese partners/associates.
- Have credible Chinese partners to help with your operations.
- Get an interpreter if possible
- Assess your suppliers or manufacturing outfit and be sure that they meet your standard
- Don’t put your trust on product samples. Have an inspector standing by to oversee your production process.
How to Do Business in China – Understanding the Chinese Culture
Before stepping your foot in China to do business, it’s advisable you know and understand how the Chinese culture works. By being knowledgeable of the environment, as well as the values of the people in it, you will have a greater chance of achieving success in business. China, just like any other country, has its own norms and religion and though these two may not be as essential to other nationalities, it is actually significant, if not crucial, in the everyday lives of the Chinese so you must always take note of this as it can actually make or break your business.
How to Do Business in China – Understanding Chinese Business Etiquette
It is a no-brainer that not only should you learn the traditions and customs in China; you must also study how business works in China. There are different business settings around the world and while some countries adhere to firm and plain practices, Chinese businesses prefer to be adaptable and flexible and these characters are found to be very effective. Furthermore, studying the ways on how to do business in China also mean actually being there; and being friends with people there. Not only will you have to do away with complete foreign business principles but you must also avoid planning on solely handling the business; as a local influence will always be an essential factor.
You should also consider looking for a Chinese partner, who will not just be able to boast his nationality, but also his experience in both business and management. Also, it is not enough that you get yourself a Chinese business partner, you must also have local employees so that they may somehow contribute to the economy; and it will surely look good in the company’s profile.
How to Do Business in China – Dealing with the Government
An important factor to consider when doing business in China is to strive to be on the good books of the government. The Chinese government has a very essential role in the business industry and foreign investments; and that is why having the necessary paperwork and the important authorization must always be prioritized to avoid the hustle bustle. When it comes to these things, businessmen are always expected to know that in China, no monkey business is tolerated; none at all.
And while there are other countries that are always booming when it comes to their business industries, you should not always expect the same case in this beautiful Asian country. Though China is building its strong reputation for being the “next big thing” when it comes to economy, it does not however guarantee fast money. As with almost every business endeavor in this world, it takes time. Patience and resourcefulness will be the most ideal traits you must possess when considering starting a business in China. However, you should not be discouraged by this because though it will take time, doing business in China will nonetheless be both fulfilling and fruitful. So why wait now that you’ve known how to do business in China? How about actually engaging in that business?