Is the Culture Barrier still an impediment for doing business in China ?
Yes, most definitely. For someone…but not necessarily for you!
The China market is not new. We westerners have been fascinated by the potential of trade with China since the days of Marco Polo. For most of us, though, the real action has been taking place since China joined the WTO in 2001. Remember, though, that China 's economy started opening way back in the late 1970s and early 1980s. In other words, the world's most exciting developing market has been getting ready for you for nearly 20 years.
What does that mean to you, the western business owner who wants (or NEEDS) to access the China market? It means that other people have already done much of the heavy lifting. The Chinese central government has put legal codes and trade regulations in place; municipalities like Shanghai , Beijing and Shenzhen have built impressive infrastructures; and multinational corporations have introduced Chinese consumers to the wonders of branding and consumerism. But there has been another development that you should be even more interested in. A veritable army of entrepreneurs, consultants, and service providers have staked a claim in China 's new economy.
China-Western Cultural barriers will have to be crossed – but it doesn't have to be by you.
There will definitely come a point where someone has to translate, interpret, negotiate and haggle with local businessmen and government officials. You can – and should – pay someone else to do that for you. There is now plenty of talent in the major cities who are expert in your industry and/or your specific China needs. The cultural divide can be bridged by your consultant or service provider.
In places like Shanghai , you have a wide range of professional assistance to choose from. You can select professional assistance from a variety of different backgrounds and orientations. This includes:
• Expatriate entrepreneurs who have been living and working in China .
• Multinational Corporations (MNCs) who have opened offices offering the same services in China that they do in your own city.
• Overseas Chinese who understand the business standards and requirements you have while also understanding the cultural issues of China and its many different regions.
• Returnees, or mainland Chinese who have lived and worked in the West for years. Many have returned to China to make their fortune and start businesses that can help you access the China market.
• Experienced locals who possess international levels of skill and business education. It is best to find locals with the right kind of experience:
Experience in your SPECIFIC business problem.
Experience with other western businesses.
There is no reason for you to have to make your China business a cultural exploration any more. Shanghai and other major cities have the full range business consultants and experts. Sure, some Chinese businessmen will start by telling you about the importance of building long-term relationships and asking if you have ever had Chinese food. But now you have the option of sitting down with an MBA who was born in Shanghai , raised in Toronto and educated at NYU who can discuss ROI and market positioning at the same level as an expensive NY management consultant.
Build your China Network
Are there any reliable China-based consultants? Yes, there are many – and the numbers are growing all the time. Sure, many of them are opportunists, charlatans and con-men. You can, however, say the same about New York , London and Sidney . But you can also find plenty of reliable, honest and value-added business intermediaries.
Perform your due-diligence on them. Develop guidelines about communications, schedules and limits of authorities. Then hold up your end of the deal. Working with international professionals involves scheduling, persistence and commitment. One of the biggest complaints among China-based service providers is clients who have unreasonable expectations or who are impossible to reach. Partnership means you have to do your part. And don't forget about the time difference. If I call you at 3:00 AM asking for a specific number or invoice, you may have a little trouble locating it too!
The key is to start building your professional network of partners, consultants and service providers early, and rely on them to guide your China planning. A value-added consultant will be able to help you fine-tune your China goals develop a realistic strategy for accessing the Chinese market. If they cannot, then you must continue your search. Don't settle for poor advice at the beginning because you want to save money or time. Begin your China business by finding the right partners. You will reap the rewards for years to come.
