Southern Perspective Shenzhen

With cost going up and margins going down, the buzz word of China comes into play. Amazingly enough, not everyone is doing it. Many reasons come into account. Trust, lack of experience, bad experiences or just plainly never considered it.

What might sound like an obvious statement, “Business in China is not the same as Western countries”, is contradicted otherwise in people’s actions. Not being thorough in vetting opportunities, acting hastily or relying on US laws for China to name a few.

The beast of business is the same but with different standards and practices. Understanding those standards and practices are what make the difference of doing successful business in China. To achieve the savings and get the   expectations you want, your practices will have to change.

1.    China requires more attention to detail
a)    Whether it is sourcing a part, setting up a foreign resident branch or creating a WOFE, it will be to your advantage to record and observe.

2.    Do everything above the board
a)    The truth is, if you can’t afford to do everything with the law and/or preparation (registering proper paperwork, having consultants if not present, doing it through “a friend”) you will lose more AND have no recourse.

3.    Compare more companies and opportunities
a)    Get a feel for the levels of competency along with price from the companies you choose.
b)    This goes beyond just sourcing. Compare properties, rents, partners.

4.    Do the Due…Diligence
a)    Records are available, use them. Prior customer’s opinions, factory inspection and auditing.

5.    Be punctual about your responses and actions
a)    This does not mean act quickly, but letting one know you are aware and on top of the situation. This leaves out room for lagging deadlines.

6.    You can not run your business affairs from outside of the country.
a)    IF you are doing business here, BE here.
b)    IF not, have someone working here for your benefit.

7.    Be clear in your goals!
a)    China is not the place to “figure it out”. Have a plan, understand/compare opportunities, and change when needed.

A word on Chinese law:

Chinese business law is developed and is reliable. Understanding Chinese law certainly helps but is not required by you. We are here to help lift the illusion that China is lawless. We would like to help people understand that good business can be done here as well as fair business. With proper preparation and know how, you too can benefit in what China has to offer.