Chinese Biotechnology Companies on Navigating the Twists and Turns of Global Expansion

To thrive in a global market that is increasingly competitive and diverse, many companies are looking to expand their operations overseas. Chinese biotechnology companies are among the most proactive in going overseas to tap into the vast pool of global talent and accelerate innovation.

However, this venture is not without its set of challenges. Hank Yang, CGL Director who specializes in recruiting global R&D talent for pharmaceutical and biotechnology companies, delves into the key questions Chinese companies are considering to address the challenges of setting up overseas.

Chinese companies recognize the importance of thorough market research and understanding the local situation before making any decisions.

"Companies should ask themselves key questions about the major industries in the region, their main competitors, the supply of skilled professionals, and the qualifications and experience of local professionals," he says.

Furthermore, Yang highlights the significance of understanding the local education system, regulatory environment, cultural norms, cost of living, quality of life, infrastructure, local partners and networks, government incentives, and potential risks.

"What universities or research institutions are there in the surrounding area? What are the legal requirements for setting up a business here? What are the cultural norms and values in the workplace? These are all crucial factors that companies need to consider," Yang explains.

Yang also underscores the significance of cultural norms and values in the workplace. What communication and collaboration styles do local professionals prefer? This is a vital aspect to consider as it can influence employee satisfaction, productivity, and ultimately, the success of the company.

The cost of living and salary expectations in the area, the quality of life, the state of local infrastructure, the presence of local partners and networks, the availability of government incentives, and the potential risks are other key factors that Yang suggests companies should consider.

"What is the cost of living in the area? How will it affect potential salary levels? What is the overall quality of life in the area? What is the state of local infrastructure? Are there local partners or industry networks that might benefit our business? Are there government incentives or grants available for new businesses? What are the potential risks of operating here?" Yang probes.

In addition to identifying these key questions, Yang also stresses the importance of thoughtful communication within the team and with potential candidates.

"Understanding the local situation is not just about gathering data. It's about engaging in meaningful conversations with local professionals, potential candidates, and partners. This will not only help you understand the local situation better but also build strong relationships that will be beneficial for your business in the long run," he adds.

In conclusion, Chinese biotechnology companies planning to expand overseas must ask the right questions and engage in thoughtful communication with the local markets they wish to enter. This will enable them to better understand the local situation and make informed decisions that will put them in a better position to succeed overseas.