For the last
few months, it seems that every other conversation I have is about exporting to
China:
Where do you start? Depends upon your product.
Do I need local partners? Yes.
Is it expensive? Can be – some of the larger cities have very high costs of living
(especially if you want to live to western standards).
What about Intellectual Property
rights? Improving.
……..
And the Silk Route is thriving - China is currently the
world’s largest exporter and set to become the world’s largest importer in a
few years according to Minister of Commerce Chen Deming. Any technology company planning to become a
major exporter must include China in their plans.
InvestNI are
organising another Trade Mission to China later this year that is generating a
lot of interest. And although the
Republic has stolen a march on everyone by having Vice-President (and soon to
be President) Xi Jinping visit last month with a view to increasing
international trade (already sitting at €4.5bn pa between Ireland and China),
the current visit underway by Liu Yandong, a member of the Chinese Politburo and
considered to be the most powerful woman in China, is very positive for Northern
Ireland.
I was recently at the Sir Bernard Crossland Lecture in
Riddle Hall about “Building Business in Belfast, Bangalore and Bejiing”. Based on this lecture and my own personal
knowledge here are my top tips for conquering China:
- Best to pitch your brand
as an innovative one; Chinese entrepreneurs still regard the West as the
bedrock of innovation.
- Select your launch
location carefully. The regions with the best developed high-tech
environments, and where you should first consider setting up an office or
finding an experienced, well-connected local partner, are Beijing,
Shenzhen, Shanghai and Shaanxi.
- Build Relationships slowly
and seriously – focus on family, education, culture.
- Choose colours for your
collateral/presentations carefully. e.g. Green is a colour we associate with
the environment, with spring, with Irishness but in China green is associated
with exorcism or infidelity. Red, Blue,
Yellow or Black are pretty good in China (although, probably best not to
use them all at the same time!).
- While English is the
recognised business language, do have a Chinese translation on the back of
your business card. Do hire
interpreters during on-site intense negotiations.
- Learn about Chinese business protocol – punctuality, respect for age, dining etiquette, use of titles, giving gifts, conservative dress code.
And my top tip is Be Patient. The Chinese live in the world’s oldest,
continuous civilisation (c4000 years), their macro-economy operates to 5-year
economic plans (the 12th in modern history is just starting) and they
resent the impatience of westerners to conclude business quickly. They will use your impatience to their
negotiating advantage, so take it slowly!
My associate Norbert Sagnard has just added a new associate
in Shanghai – Eurasia Consultis – who are now our local hi-tech
commercialisation experts, ready to help your business set up locally with the
right foundations.
Geraldine Fusciardi
