china is that you thought! localization of USA company in china is necessory 美國企業為何在中國大陸水土不服
64 views · Published 14 November 2015 · 25:23 · Indexed 20 September 2026
Channel: Fluss He · 2015 · Science & Technology
Mistakes and frustration are par for the course for American companies doing business in China. As a lawyer who has represented hundreds of American companies operating in China, I have had plenty of opportunities to see what works and what doesn’t. The following five tips will help American companies reduce the chances of suffering from “China heartbreak”: 1. Do not underestimate the up-front time commitment. Companies tend to underestimate the time their senior managers will need to devote to China. Companies too often think that they can go to China a few times, hire a brilliant and dedicated local manager to run their China operations and then virtually never have to go back. Companies that operate like that rarely make money in China. Doing business in China is difficult, and few succeed without high-level people from the home office spending at least a couple of years in China thoroughly training new staff. 2. Do not underestimate how long things take in China. We Americans pride ourselves on getting things done fast. But when doing business in China, the best strategy is often to back off and let things happen. Many Chinese companies are not motivated primarily by economic efficiency. Their goal may be employment for the local community, or to fill a quota, or to get the boss’s son a green card. You need to learn to account for this. 3. Do not think you have a deal until you have the deal. I am always getting called by American companies wanting me to draft a contract for a deal that does not yet really exist. So many things can go wrong on a China-U.S. business deal. Many deals fail because of cultural differences between the American and the Chinese sides. Many also fail to close because neither side realized that they could not be legally be done. Chinese companies also commonly negotiate with multiple companies at the same time and just when you think you have a deal, they go off with one of your competitors. 4. Do not underestimate the difficulty in finding quality personnel. It is the rare Chinese professional who understands the level of detail, the idea of thoroughness, or the standards and the expectations that American businesses take for granted. Chinese professionals tend to be reactive and follow directions even when they know the method employed is ineffective or counter-productive. They usually see their job as following your orders because “you’re the boss, and you said to do it.” 5. Do not rely on guanxi. I am convinced that those American companies that never use the word “guanxi” have a ten times higher China success rate than those who do. This is not because having good relationships in China is not important — it most emphatically is. Having good business relationships is important everywhere, not just in China, but those who use the word guanxi seem to use it as an excuse for abandoning common business sense. As in, “Why did you send this Chinese company $500,000 without a written contract?” Answer: “Guanxi.” Do not let talk about guanxi divert you from taking appropriate precautions and insisting on adequate protection. Follow the above advice to improve your chance for China success. 美國企業真的了解中國嗎 Do American Companies Get China doing business?,for more information about china world news visit site at http://youtube.com/user/cosmeticmachines as well as business website at http://penglaichina.com
