Working as China specialized business consultant and management trainer, I have just seen how a few German firms got frustrated with their first try to do business with China. For sure, it is not easy, if you want to sell your product to China or get it done there. There exist long distance and "foreign" people whom you hardly understand or to get understood. Nevertheless, while one hesitates, others head forwards. To assist you with a successful business development, ChinaKnowHow, the China consulting and company communication expert suggests the following.

Firstly, define companies which you should contact with a preliminary credibility proof. This is vital important for further communication or strategic decisions like negotiation or pricing. In such a tremendous economic body like china where numerous units struggle for new business chances, one has to have an "orientation map" of the market to save both time and energy. A structured work approach helps identify real players in the industry and to organize business in a most cost effective way.

Secondly, it can only mean two possibilities, when a should-be supplier requires endless product information from potential customer. One is that the supplier is technically competent and economically interested enough to make specific customization. This applies normally only to considerable contract value. The other one is then business interest for the market information. Different as in Europe or America, the message of " this is not my business" or " this is beyond my capacity" is seldom directly spoken out from a Chinese. This has to do with Chinese way of thinking and also china's economic history in last 30 years.

It is not surprising to see that requires for telephone meeting are so often turned down by Chinese side. Most personals especially decision makers from state-owned firms do not master a fluency of English (international trading firms are exceptional).Unless a very concrete business interest is foreseeable, one makes little effort to do communication in a foreign language.

Thirdly, some trading platforms like alibaba.com have also been used by ChinaKowHow as information source for its clients. One may get deals with good luck, but for a systematic business development in china, we are convinced by experience (and feedback from clients also) that a solid industry knowledge about Chinese firms is fundamental. To know the standpoint of your potential business partner in the industry will be helpful not only for effective communication, but for evaluation of key issues like quality standard, delivery terms, etc.

It is clear that China has a very different (business) culture from that of America or Europe. To bear this in mind during daily business is ,however, not easy for someone with little Chinese experience. Economist conclude that the "transaction cost" in China is too high, which especially applies to its low transparency of information, costly building up of relationships, etc. But progress still has to be made. Inquiry of your professional assistance from ChinaKnowHow will guarantee your successful way to China.

Li-Hong Koblin
Dipl. - Okonomin, MBA
http://www.chinaknowhow.de