Par Biao Wang 

1. Prenez du temps d'établir un rapport sain avec vos contre-parties chinoises. La confiance absolue doit être établie, puisque les Chinois ont limité la foi dans le système légal/cour. Cela prend du temps de développer la confiance. Projetez sur cette étape du processus prenant au moins six mois du dialogue continu. Établissez la bonne structure d'affaires pour votre rapport en Chine.

2. Établissez la bonne structure de gestion pour votre rapport en Chine. La route vers la Chine est salie avec les compagnies qui ont essayé seul de se y mettre et ont échoué. Il y a un certain nombre de manières de le faire comprenant des opérations clés en main, en utilisant des agents en Chine, en utilisant plusieurs différents types de joint-ventures en participation et possédant votre propre usine. Pendant que vous procédez par cette liste, l'épargne augmente, mais ainsi faites les risques.

3. Recherchez un associé chinois avec la qualité et le contrôle du processus de cycle forts. Vous ne pouvez pas dépendre de la certification de l'OIN - l'organisation internationale d'étalonnage. La certification de QS (utilisée dans l'industrie automotrice) est plus sûre. Découvrez si votre associé potentiel peut être rapidement qualifié fabriquer à vos normes. Si votre fabricant éventuel est trop lointain au-dessous de vos normes exigées, le temps requis pour se lever à la vitesse pourrait être prohibitif.

Conversely, if your potential partner is too large or too quality-focused, and if you would not represent a significant part of their business, you might not be able to get the attention you need. You don’t want to become a “low priority” client for them.

The best match is when you find a small manufacturer just achieving your level of quality control.

4. Engineering is needed on both sides. Examine the high tech capabilities of manufacturers. Look for their Web and CAD-Cam capabilities in particular.

5. Plan on routine trips to China. You will need to go twice a year to get the “face time” that builds and maintains relationships in China, unless you are looking for a “turn-key,” “hands-off ” arrangement.

6. Understand the logistics. If you will be shipping by sea, for instance, expect a 4-8 week allowance for delivery of products. Therefore, just in time inventory systems may not work. You will need to maintain a higher level of inventory to support your customers. It is also useful to maintain a back-up supplier.

7. Understand the Rules of Thumb for costs of manufacturing in China. For example, labour costs are typically 0.70 USD per hour and the labour content of manufacturing costs is typically 5%. Generally, your manufacturing costs can be reduced by between 30% to 50%, depending on the structure of the relationship (see paragraph number 2). Similarly, the costs of raw materials can be dramatically lower in China.

8. Recognise the importance of family relationships in China. Business networks are based on familial ties (i.e. the father owns the factory and eleven relatives work in it). An entire family might be involved in the factory, which helps them diminish the impact from the sudden loss of a key employee, but might not always be the most productive organisational structure. While you might find it inefficient, it’s a fact of life - not a problem you can fix.”

9. Plan to participate robustly in social activities. Business is conducted through social interactions more in China than in many places. Dinners, drinking, tours and sightseeing are all part of a continuum of daily commerce and are important in building relationships and establishing the trust that is mandatory for doing business in China.

10. Political connections are important to expedite the business process. The government officials are in control. You need their approval for almost everything including a business licence. Gifts are part of the social-business mix too. Give them liberally, accept them graciously.

11. Low labour costs, high profits, but make sure there are no ethical problems, such as use of child labour. Most companies are looking for low labour costs in order to be competitive, but are keen to avoid unethical exploitation of workers. We take these issues very seriously, and take great care to recommend only organisations with high ethical standards.

Biao Wang is the Founder & CEO of Camellia Universal Ltd (China Business & Investment Advisors).