Companies pursuing an increased presence in China have had a wide of results. Small and mid-size USA companies have had tremendous success in China creating great value for their customers, employees and shareholders. Other USA firms have struggled or failed to get results in China. Small and mid-size USA firms are expanding their business with China to be close to their customers in the China, and to take advantage of favorable cost and financial incentives for doing business in China. The following key success factors must be managed to have successful business venture in China. Realistic Business Expectations - Avoid Frustrating Mistakes! USA fast paced business expectations can create frustrating negotiations and unrealistic initial goals for ventures in China. Chinese negotiators use time more deliberately during business negotiations than is typical in the USA. In addition to normal business factors, the influence of various Chinese governmental agencies and different legal requirements can affect the timing of projects and realization of results. Having a head-start with a local Chinese ally can provide support sorting through bureaucratic and cultural barriers. Chinese Perspective - Navigating through Rapidly Changing Environment! Visiting China for face-to-face meetings with local business partners and potential customers is important to gain both market knowledge and perspective on doing business China. It can also start the process of developing key personal "Guanxi" relationships. It's not unusual for USA firms to consider legal agreements as the perquisite for conducting business. In China, it is much more common to consider personal relationships a perquisite to establishing binding legal agreements and business relationships. Understanding Chinese cultural and business practices can avoid damaging mistakes.
Related Articles -
China, China Business, China Trade,
|