By Ron Cune
 
China is much bigger than Europe. Most people are well aware of that. Also, the country is not around the corner, this as well is common knowledge. Although we have quite some general knowledge about China, a lot of important business-related knowledge is not known. For instance the banking sector is still highly regulated, foreign currency exchange from RMB to any other currency is not so easy and business licenses are determined by business scope.
 
Realize there is a strong preference policy to relocate certain industries to certain regions. If these policies concern your industry, it will have a big impact on future market developments.
 
Information about cultural differences between the West and China is relatively easy accessible. But culture is only a part of doing business. Laws, governmental system, taxes, etc. are just as important. Realize that the China’s governmental system lacks transparency. The unique system is decentralized and laws and regulations can differ on city level.
 
Furthermore, the laws and regulations are complex and implementation of laws is ambiguous. Where to find your legal advice? 
 
While preparing yourself for a business trip, do not only focus on cultural and linguistic differences. All additional information (whether general or branch related) does make a difference achieving your goals. For example, you would be surprised how many businesses, not aware of the unique Chinese financial system, learned by hitting the wall.
 
Entering the Chinese market should be based on a strategic decision that requires more (financial) input than any market entry in Europe.
 
By investing time in research you limit the chances being (unpleasantly) surprised in China. Your in-depth knowledge and good preparation will optimize and accelerate your capability of doing business. It will help you localize creative solutions when problems arise.

Ron Cune, DragonDancers