4 EXPERTS TIPS TO INTERNATIONALIZE IN CHINA
Do not underestimate the scale of the action
Implementing your business on the Chinese market, tempting and promising as it sounds, requires a clear and precise project. China is a very competitive market, and challenges are as big as those related to expansion in the US.
Choose the right type of establishment for your business
The nature of your business and clientele will set the administrative status of your company. The joint-venture is less and less used for historic reasons: a lot of foreign companies turned out to be loss-making. As they could not recapitalize, they encountered a loss of technology when the Chinese companies become the majority shareholders. Thus, today, we prefer the acquisition or the majority ownership, which accelerate the business.
Take into account the Chinese business practices
Corporate law is not more complicated in China, but Chinese have their own habits and customs. Sometimes, these habits are not understood by the occidental business leaders. There is an etiquette to follow whilst doing business in China. The ideal situation, is to have a person filled with both cultures in your company, or a mixed team. This will not only help you overcome the considerable language barrier, but it will also help you secure the anchoring of your company while
spearhead its values.
Find a trustworthy local partner
Finding a local partner is VITAL to establish your business in China. Nevertheless, finding that partner is a laborious task. Caution, patience and discussion are the three key words to finding the perfect partner. If you use distribution channels in China, it is even more essential for you to find that partner. He/She will be your right-hand man concerning the operational aspects, especially regarding the production line (which can have a lot of surprises).