Fünf unangenehme Wahrheiten des Tuns des Geschäfts in China
Durch Yue XI
China, mit 1.3 Milliarde Leuten und einer dröhnenden Wirtschaft, ist zu den meisten amerikanischen Firmen unwiderstehlich. Aber ein Traum bildet nicht Wirklichkeit - über den Jahren sind viele von versucht zu haben, die Geheimnisse des chinesischen Marktes zu knacken und viele ausgefallen. Wenn Sie mit Firmen sprechen, die versucht haben, einschließlich einige der respektierten Firmen in Amerika, ist die Antwort unvermeidlich „es war sehr schwierig.“ Die Schwierigkeiten gehen über den typischen Ausgaben hinaus, die entstehen, wenn sie übersee Geschäft, wie Unterschiede bezüglich der Sprache, der Kultur, der Regelungen, etc. tun. In China gibt es mehr zu ihm.
Diese Unterschiede sind zu mir, während ich immer mehr die Zeit verbracht habe, die Geschäft in China tut, und zum Rest von Asien, über den letzten fünf Jahren offensichtlicher geworden. Ich bin glücklich, daß ich in beiden Kulturen bequem fühle - ich war in China geboren, aber meine Familie wanderte in die Vereinigten Staaten aus, als ich in Juniorhohem war und bald danach ich ein amerikanischer Bürger wurde.
So von meiner Erfahrung, sind hier fünf unangenehme Wahrheiten, die eine westliche Firma gegenüberstellen muß, um erfolgreich zu sein.
1. Chinesen folgen nicht den Richtlinien - und tatsächlich, zeigt den enormen Scharfsinn, der Wege um sie findet. Folgendes Mal besichtigen Sie China, gerecht gehen Sie unten zu einer beschäftigten Straße Ecke und passen Sie auf, was ausbreitet. Niemand beachten die Ampeln oder die Zeichen, es sei denn selbstverständlich es einen Polizisten gibt, der an der Ecke steht.
Passen Sie so vom Schließen von Vertragsverträgen auf. Amerikanische Firmen haben einen fast frommen Glauben in den zugelassenen Verträgen, wie Nicht-Freigabe Vereinbarungen (NDAs). With their typical hubris, American companies expect Chinese companies to sign NDAs written in English, and enforceable in US courts. Chinese companies are happy to oblige, unlike for example Japanese companies. On the positive side, they want to get down to business as soon as possible and can’t understand why Western companies waste so much time conferring with their lawyers. On the negative side, Chinese companies generally never have any intention of actually honoring the agreement.
2. Chinese will copy anything. As part of their frantic drive to overcome the disasters of the 20th century, Chinese thirst for knowledge. They take pride in learning how to do new things, and duplicating them quickly and cheaply. There is very little respect for intellectual property - either from the West or home grown. A typical saying among Chinese is that “once we figure out how to make something, we will never buy it from you again.”
What that means for Western companies is that the Chinese will be very humble at first and will ask for training sessions to help with “knowledge transfer.” Once they get a product, they will take it apart piece by piece and figure out exactly how it works. There is nothing surprising about that - there is a long and rich history of reverse engineering in Silicon Valley - its a cornerstone of good engineering. But Chinese do it with the full intention of copying the product - and any parts that they can’t copy they will try to clone or buy locally.
3. The trap of joint ventures. Chinese love doing joint ventures with foreign companies and will tell you how profitable its going to be for both parties. Their logic is compelling - the Western company provides the cash and know-how, the Chinese company provides access to the local market and cheap labor. But want to know the real reasons Chinese love joint ventures? Its three fold. First, they get access to Western technology. Second, they get an infusion of cash overseas. Third, they get a nice tax break from the Chinese government. Needless to say, almost all joint ventures fail.
4. Expectations of high margins. When doing business in Chinese, most American companies expect to make the same profit margin as they do at home. Hah! This muddled thinking causes their products to be many times more expensive than local products. And it doesn’t take much insight to figure out that is not the path to success.
Even accepting lower profit margins, American products will still be more expensive than local products. Chinese companies have lower cost structures, and in extreme cases, can compete by giving away products for free and making up the revenue via services. And American companies simply cannot compete on services since labor costs are so much cheaper in China. So to succeed, you must offer a superior product that is worth its additional cost, but you must accept the fact you will not make the same margins in China as in the United States.
5. Last, and I hate to be so blunt, but the brutal truth is that most Chinese consider Americans stupid. Another Chinese saying sums it up nicely - “Taiwanese are old fashioned, Hongkonese are heartless and Americans are stupid.” Of course, they’ll never tell that to your face. In fact, many Americans love doing business in China because the Chinese will entertain them in a way that they’ve never experienced in the US. But don’t believe you are becoming friends, you are not.
Obviously, there are host of other issues you’ll run into, but these are the ones that have really struck me.
Yue Xi, Yue’s Yappings




































August 10th, 2007 at 5:23 pm
Xi Yue, you clearly know what you are writing. People who have done real things in China, either burnt their fingers or managed to get through, definitely have similar experiences and completely agree your points!
August 13th, 2007 at 2:01 am
[…] Five Unpleasant Truths of Doing Business in China | China Business Success Stories: China Business Success Stories on Chinese Business and Commerce China, with 1.3 billion people and a booming economy, is irresistible to most American companies. But a dream does not make reality - over the years many of have tried to crack the mysteries of the Chinese market and many have failed. […]
August 23rd, 2007 at 2:42 am
While I sort of agree with you I want to submit here that many Chinese companies and people are really very nice and most if not all agree that more has to be done to reduce pollution,poverty and prices in general - some may be indulging in cloning products and using cheap labor in the bargain - these type of ventures do not really last long unless really revamped and cleaned up.I have met a few people from China Tsinghua University and Ministry of Science and Tech. and this is their response too and Chinese really respect elders and buy from companies that have stood the test of time and also sell to the companies that have stood the test of time.
August 24th, 2007 at 2:51 am
I set up contract manufacturing arrangements for seven years and agree with almost everything you wrote.
My Chinese partners understood where I stood and where their role was. My American customers let me do all the work and depended on my deliveries without trying to inform me how to deal with our foreign manufacturers.
And, we very carefully chose the appropriate products to outsource!
January 2nd, 2008 at 1:28 pm
Dear Yue,
surely you know what you write. The situation with Chinese business seems somehow to me like the situation in Italy during the 60es. Being not well organized, not respecting the rules, trying to get the benefit for the single instead for the community etc etc.
Nevertheless, I would like to turn the question around. I am certain there are several examples of good cooperation China-rest of the world, what are in this case your advices to get a good and durable cooperation ?
Thanks a lot for your time.
Kind regards,
Cosimo Caraglia