8 Potholes in International Business in China

8 Potholes in International Business in China

There are several issues to doing:

International Business in China

1. Unfair Law Enforcement

Every country favors its own companies. America certainly does it with companies who come to China. We have to understand that will not go away, Show respect to the government. Understand that bureaucrats have a hard job and you will do find a way unless your goal is to destroy the local governments favorite business. Note this blog for more: Bureaucracy, Bureaucracy, Bureaucracy

2. Market Differences in Accepting your Product or Service

Apparently 4000 some years ago at the Tower of Babel, the Chinese and the West went different ways with different languages. Well, whether you believe that story or not a lot of water has gone under the bridge while our cultures were apart, We should not be surprised that they have completely different ways of catching mice or doing just about anything. You may want to read more here:

3. Renting Space (if needed) in China with 7 connections

Do not assume the government is going to pay to run the pipe to your chosen facility. Do not assume that place you found is zoned to do what you want to do Actually, try not to assume anything accept they must have a way that makes sense to them. They do. Refer to Starting a Business in China II – All the Factory Process for much more on this.

4. Planning Material Importing and Exporting Issues

Every country has its own import export sensitivities. Refer to point 2 if that frustrates you. Generally, if you plan to import, assemble and then export, then they will let you import raw materials without tariff under their system.  Some companies outsource this process and others hire for that ability However, before you start, you need to understand what products you need and what it will take to get them in and out.legally and cheaply.  That may help you know more about your location to set up as well. So you will need some help thinking about this before your first hire.

5. Getting Local Sourcing or Importing from China

Companies used to come with a plan to indigenize all raw material because China was low cost on everything. That is not true anymore, and you need a more nuanced look at this question. You need to see supply globally and not just bilaterally as it were. If you are just buying in China then you need to  See this China Law Blog articles Importing from China: A U.S. Customs Checklist to Minimize Your Risk and China Manufacturing and the HUGE Impact of Payment Terms for more thought on this.

6. Hiring Staff

If you need boots on the ground, then you need to hire, and you should not assume that these hires whose culture grew strong for 4000 years without you will think like you. The Chinese are famed for their hospitality which means they know how to put on a show.. The more talented will have excellent interview skills. You may well want to see Recruitment Agency China

7. Training Staff

It is often a waste of time to train staff. That is because you have hired the wrong leaders, and they got the wrong hires.   Oh, it also could be you got a bad trainer, but that is not the main issue I find.  See Also 6 Ways of Doing Business in China

8. Getting Money Out of China

The government knows you came to to earn money, and they accept that. That does not mean that they are happy about that. All countries will not want you to send away the money. Recall point 1.  As in other countries their are laws that allow even foreign companies to get money out, Royalties, dividends and other legal means do exist, I would not recommend illegal ways as we should never forget our morals or Point 1.  China Law Blog wrote a lot on this here,. Getting Money Out of China: It’s Complicated, Part 5  It will also link to all 5 articles.

There are lots of issues to think about in doing international business in China.

We hope you succeed and succeed in better ways.

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Posted in: China Recruitment - Getting Good People, China Startup, international business in China

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