It is true: China has a large market area, where you can make a very decent living, but don’t expect miracles. Rob Groeneweg believes thát is the essence of doing business with China. His friendship with the Chinese Anne Xu is what started his hands-on experience; selling Chinese art on the Dutch market, through his newly founded business, Xuro. The sale of Chinese art still needs time to flourish, the demand on Xuro’s services as a business developer on the other hand grows rapidly. “Lots of entrepreneurs only think of China’s potential, having 1.3 billion consumers, and therefore are too eager. However, a bad deal remains a bad deal. Don’t be too greedy. The real market potential often is much smaller then you think.”

Working for Cross Ocean Cosco Container Lines, Rob comes into contact with China in 1990, because this company has been working with Chinese employees and trainees for decades. “In the Netherlands, there are approximately 8.000 Chinese students and they often look for traineeships at companies that are China orientated. I became friends with one of these trainees. In 2004 I visited her in China and I instantly fell in love with this country. The dynamics, the building sites and the atmosphere, I find it marvelous.”

The façades
Soon Rob learns that doing business with the Chinese takes a lot of knowledge and understanding. A bunch of money is no guarantee for success. “Several large companies have experienced this. The failures of many multinationals are proof of the fact that behind the neon façades in the big cities, a totally different culture with corresponding traditions is hidden. A culture quite different from ours.”

Spend money to make money
“For companies doing business with China, a contact on-the-spot probably is the most important investment. To find one however, is not easy. There only are a few Chinese who, on a level that we are used to, take initiative themselves, dare to carry responsibility or speak English fluently. Let alone poses a combination of all these qualities. Although the search for the right person can take a long time, it is worth the effort. Without it you’ve got little hold on your business. For example, if you need a shipment from China, it is wiser to check the product and the quantity in China. If you do this on delivery only, it takes a lot of time and money if the shipment is not according to the agreement. A representative of your interests in China therefore is both practical as well as financially wise.

A different calendar
When you have found a suitable local employee, there is still a long way to go. “Chinese are friendly people, but they must be handled with care. One of the things you must reckon with, is the importance they attach to status. That comes in the smallest things, even on subjects where we Westerners don’t pay attention to. Once I had a Chinese employee in the office. By the end of the year, everyone received a calendar from the company. There were different varieties: red, brown and black ones, big and small. These were handed out among the employees randomly. One employee received one too, he did not say a thing, looked at it and ripped it into two pieces. After that, he said: ‘they look down on me’ and didn’t speak for a week. What had happened? He accidentally had become a smaller one than his colleagues.”

Good copycat
Cultural differences prevail on several occasions. “Besides lots of positive qualities, China unfortunately also has a reputation in selling imitations. That copy-culture has made Chinese companies into able producers. Products from China often are of excellent quality. In China, Volkswagens are being produced which are possibly better than the original German ones.” Rob has an explanation for the reason why products from China are of such a high quality. “It is a hierarchical society and copying the master is the ultimate challenge. They want to be equally capable or even better. That is also the reason why there is hardly any taboo on reproducing products in China.”

Next generation
Not to judge plagiarism directly probably is very difficult for most people. On a less burdened area it is much easier to reach the other’s hand regarding habits. “In a Chinese network for instance, it is unusual to thank each other for a service provided. Once I thanked someone, because that person had taken pains to help me with something. He said: you don’t have to thank me, next time you will be the one helping me. To help is normal. Just like addressing each other calmly. Don’t push. Because if you do, the Chinese will resist. Also avoid discussions on difficult topics – like Taiwan and Falun Gong – with business relations. Apart from that, it is no problem to discuss such topics with very good friends.”

“Further the Chinese cannot handle criticism very well. The new generation is eager to make a career and earn lots of money, without problems. As soon as you have a good Chinese candidate for your company, cherish him or her. Because the young Chinese change jobs for more money, power and status, just as easy as we do. And you can’t blame them for that either.”