On your way to China?

千里之行，始於足下

So you realise that business in and with China presents a huge opportunity for your organisation, probably one of the biggest, but being successful is not without significant challenges.  I first visited China in 1996, things have changed dramatically since then and continue to do so at a breath-taking pace. 

Following my participation in The Prime Minister's Trade Mission to China in 2013, I spent 4 years creating business in China forging a successful strategic partnership.  Subsequently, I have continued to develop my understanding of Chinese business culture, learn more about China and to develop my network there.  There are many things that I have learned on that journey, not surprisingly the greatest lessons come from the unexpected challenges.

Here are 8 tips to consider...

1 - Is success in China one of your top 3 goals?

If building business in China is not one of your top 3 goals, for the whole business not just for developing international sales, then you have probably underestimated the enormity of the task ahead and the size of the prize.  Make this one of your top 3 strategic goals and communicate that with your Board and employees to establish the significance of this endeavor and provide the necessary priority and focus.

 2 - What does your partner want to achieve?

Confirming what your partner wishes to achieve, what motivates them towards success and ensuring early alignment is critical.  How can you achieve a win-win if you are not clear what win looks like to your Chinese partner?  Nobody can afford to lose face if you were to later realise that you were chasing different outcomes.  Explain your strategy and listen carefully to what your partner wants to achieve.

 3 - How will you establish credibility, your Company, your products/service, you?

What have you and your Company got to offer? Do you have good Guanxi 关系, are you a reliable person?  Guanxi plays a fundamental role within Chinese business culture with a focus on tacit mutual commitments, reciprocity, trust and the moral obligation to maintain a relationship.  Which trusted contacts in your network, especially in senior positions, can help you to establish your credibility, make important introductions and testify on your integrity to support the essential trust that is needed in China?

 5 - Are you learning about the culture, the history, the language?

Showing that you have some understanding about China and making the effort to learn some Chinese language will go a long way.  Being ignorant or being perceived as arrogant will not.  A ten hour flight from Europe to China provides ample opportunity to read about China.  Invest time and get beyond 你好 and 谢谢.

 6 - Can you invest the required time in the relationship, led by the CEO, to build trust?

Establishing trust starts and ends at the top.  If the two CEOs cannot establish good communication and understanding then nothing will happen.  Do not send your capable managers, you need to be present and not be jet-lagged.  This is more than just demonstrating commitment, this is also about showing respect and the ability to make significant decisions.  Do not underestimate the time required; air miles, face-to-face meetings and importantly, the dinners with your Chinese colleagues.

7 - How prepared are you to think differently, adapt and work together around difficulties?

Of course things work differently in China and we need to adapt our style, especially being patient.  We also need to be prepared to be much more fluid, less sequential that we may be used to.  I have spent a lot of time observing these dynamics, thinking about what I can do to adapt rather than to be confused or frustrated.

8 - How can you develop a strategic and long-lasting relationship?

Quite early on in a partnership, a Chinese colleague told me that they were “looking for a marriage, not an affair.”  Most business relationships that are transactional will not be sustainable, however in China I doubt that they will even start as they lack the necessary commitment.  Reciprocal sales UK to China and China to UK, cooperation on marketing and collaboration on new product development are just a few examples.  How can you create a multi-faceted and long-term partnership?

9 - Where can you recruit support, advice and learn from others’ experiences?

You will not be alone on your journey to success in China, others are trying too and others have gone before you.  Learning from the success of others and their mistakes too, can only enhance your probability of success.  Seek advice and support from a number of different sources, in China and the UK. A journey of a thousand miles starts with a single step, or for a more accurate interpretation of Laozi from the place that you stand, enhance your probability of success by being better prepared for that journey of five thousand miles.