When it comes to conducting business in China, infinite patience is the key. To many foreign businesspeople, the protracted pleasantries at the beginning of each meeting, the drawn-out negotiations where each minor point is discussed at length and the seeming reluctance to close the deal can be very frustrating indeed.
Many companies, when they expand or operate in overseas markets, need to have a detailed knowledge of the market they are going into or operating in. If a company is expanding into a small, comparatively unimportant market, where the revenue potential is limited, it could be argued that this is acceptable, but in the case of China, it isn't. No matter how the world economy develops, China is going to play a greater role as it becomes more integrated into the world economy. While there may be slowdowns and setbacks along the way, this is a major trend which will not change.
Already, China is a major manufacturer for world products. More and more, companies will see China as a market with increased purchasing potential. For consumer products, most of the purchasing capability will be along China's eastern coast. For businesses selling to manufacturers, customers will be more evenly spread.
Virtually all of the leading companies in all sectors are Chinese companies. It is almost impossible for foreign brands to succeed on their own without Chinese partners; the only exceptions are a few luxury brands. As a first step, it is necessary to find out who these players are.
China is still affected by the legacy of the state-owned enterprises, which often are still major players in the economy. The finance and distribution sectors are still heavily influenced by government participation.
This section of the AustCham Beijing website intends to provides an introduction to doing business in China.
