With recent global economic struggles, discussions about China have become more perplexing.
Some companies are feeling an urge to pull back and run their businesses on American or European soil and not even consider China. Others are going full-steam ahead into China and other parts of Asia without really taking the time to understand how business and supplier relationships in China work in that region.
In a recent podcast discussion with Kent Kedl of Technomic Asia, we talked about a survey from AmCham (American Chamber of Commerce in Shanghai) which showed how American companies that are successfully expanding into China are actually able to use this expansion as a hedge against the challenges they are facing in their home markets.
To stay in the game and become successful, American companies need to learn more about what they have to offer China and be able to sell it to our Asian counterparts. And lest we forget – Guanxi is still key to doing business in China (see a blog post on this topic by clicking here).
For Western companies already in China, or those that are entering the Chinese business market, I recently wrote an entertaining book on the topic. If you like to learn while having a little fun, you may want to check it out. In the book, Caught Between the Tiger and the Dragon, you can follow in the footsteps of the main character, Rich Morrison, as he learns about Chinese business processes the hard way.
Don’t go in blind like Rich. Now is the time to make sure that your company is positioned correctly in the global marketplace. Take the time to understand what your company has to offer to China and determine how to follow through with your goals. Does your company currently have a strategy for expanding to Asia? Or if you are currently conducting business with China, what have you learned?
Go!Go!Go!
Jim
More Resources
The award-winning China Business Blog and Podcast
Book: The China Ready Company by Steven H. Ganster and Kent D. Kedl
Recent GoGoGo! blog posts on business in China
Photo credit: theogeo