By David DeChant

China continues to emerge on the world stage as an economic powerhouse, projected to be the world’s fourth largest economy within two years. U.S. companies, especially small to medium enterprises (SMEs), stand to benefit significantly from this growth, assuming that they are prepared to enter this highly competitive environment filled with considerable but manageable risks. Nearly 97 percent of all U.S. exports originate from SMEs—companies with fewer than 500 employees (International Trade Administration, 2006).

To enhance their chances of success, SME decision makers must understand Chinese cultures, business norms, and values, and be willing and able to adapt quickly to always-changing markets. This article should help you participate in the world’s fastest growing economy with its ever-increasing demands for premium quality goods and services. You will need to deal with the following questions: Read the rest of “Accept the China Challenge” or post a comment

Within a two-minute walk from my apartment in Shenzhen, there is ample evidence that intellectual property, particularly American, is not very well-protected in China. Nighttimes, three different vendors set up their folding tables on the main street with pirate DVDs by the carton-full, including many of the latest Hollywood releases. Cost: RMB5 each, or 73 cents each.

Read the rest of “Intellectual Property Law in China – Rule of Law is Replacing Law of the Jungle” or post a comment >>

By Steven Chow

Screen and verify China supplier

Screen and verify supplier is just like dating. Someone in who you will lose interest at first sight, someone of whom you will gradually find out that they don’t fit you, someone you can’t tell by appearance so you need to do some test/research to know if he/she is your Mr/Mrs. Right. If you do your homework properly, you will find a great partner, if you just chance your luck, you might be the lucky guy, but more likely, you will get a pain in your ass.

Many buyers have been scammed by “suppliers” or have a contractual dispute with “suppliers” due to the following reasons:
a. they don’t realize they should verify the supplier.
b. they know you need to verify, but they don’t verify them properly
c. they know they need to verify, but they don’t have resources to verify them properly. Read the rest of “China Sourcing Ultimate Guide – Part 2″ or post a comment

By Leanne Li

After you have arrived in China, the following are crucial points to consider.

Choose your visiting time wisely
We always try to arrange plant visits at two time slots: 8:30 – 11:00 and 14:00 – 16:00. Compared to normal office times in the West, Chinese plants have different working hours. They start and close earlier and have a longer lunch break. You can only see the production line in operation in one of these two time slots.

Things to look out for during the workshop tour
Every company has their own evaluation methods to rate suppliers. Here we just mention a few basic points that we have picked up from our experience in visiting Chinese plants.

1. Ask and verify the raw material sources of your suppliers to make sure that the products are qualified to meet your country standard.
2. Check the production process in detail. Make sure their examining and testing machines are actually functioning properly. Read the rest of “China Plant Tour Tips – Part 2: During Your Visit in China” or post a comment

From time to time, MTD readers write to me directly for advice. I received the following e-mail from a Korean manager who is a new arrival in China that I thought I would pass along:

Dear Mr. Perkowski,

I read your excellent book, Managing the Dragon, which gave me a lot of inspiration. I think it is a…

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