Doing Business in China
If you manufacture a product or have a fantastic Fintech product ideally, china is the next step for your business. China is the second largest consumer in the world with most of its investors having low debt. Many brands that come from outside of the Asia pacific region entering china tend to do very well. You may have a very well formed business plan. However, you will need to adapt that to the demands of china’s cultural and economic landscape. If you learn to embrace these challenges success will come to you very quickly.
Your professional dress is important as it will assist in crafting your first impression. You need to present yourself as an ambassador of your country, family and business. This means wearing clothes of high quality and brand value. This will give you some credibility when you are first meeting with someone.
Your handshakes should be firm but not tight, short with just enough eye contact. No handshake should last anymore than 3 seconds. It’s polite to smile and give a light head nod. If your handshake is too firm it is considered an act of aggression or hostility.
Face. Face is your reputation and it’s extremely important. Having face, is the ability to make difficult negotiations without losing your temper. To have honor, respect and candour to those whom are you trying to do business with. When doing business with anyone in china, it’s important to understand what it is they want first of all and meeting that compromise in the middle.
Your meetings will be far from formal as you are a guest within their country and a potential business partner. Your meetings will start from the middle of the afternoon and could potentially last all night. You can expect meetings like this for at least one week before any formal or on paper arrangements are made.
You should only enter meetings with people who can contribute to the conversation. This means only having your key and most senior employees with you at the meetings. Out of mutual respect, your new chinese friends will do the same.
Your business cards should have a mandarin translation on one side and an english translation on the other. Your business cards should be presented with two hands having the mandarin side facing up.
You need to invest in a special wallet or place holder for business cards. An exchange of business cards is similar to an exchange of phone numbers before a date, it’s exciting but you need to be respectful and keep your emotions in check.
The chinese Government wants more foreign trade within china and as gone to a large effort to introduce new policies that raise the standards in terms of legalities for westerners in order to encourage investment and trade within china.
- Even after the chinese economy reaches it’s late stages of growth or maturity the GDP will likely continue to exceed 5.00% annually;
- Population in china is more than 50 times that of australia by conservative estimates; and
- More than 300 million people in china are considered to be middle class.
Local and provincial government departments in china have significantly increased free trade zones, technology, research and development zones as well as the relaxation of special tax laws, simpler licensing processes in order to decrease barriers to entry within the chinese economy.
All in all, if you are prepared to do business in china you should have enough capital, time and patience to work with us to make it happen.