Other Factors That May Impact Doing Business in China
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Other Factors That May Impact Doing Business in China
Factors that impact doing business in China range from something small, such as too much eye contact, to something big, such as underestimating the expectations of a China businessman, and everything in between. The previous statements listed only touch the bases of doing business in China. There are many other factors about Chinese business that we seem to ignore or not perceive as to be a major concern or benefit. When dealing with a different culture you must go deep into its beliefs and morals to really understand and know how to make your moves based on your knowledge.
The biggest mistake we can make is assuming that China does business like Americans do. This mistake should be obvious because America and China are on complete opposite sides of the world. With all that distance between us you could only assume that the entire culture would be different. America is transaction oriented while China is relationship oriented. There is a gap between these two styles of interaction that must be met at a certain point to gain the respect of a China businessman. Respect is what China looks for and with that met comes greater opportunity.
We think that China needs us and must have us but that may not always be the case. China is doing great economically and this belief that we have of China having some bad form of capitalism is greatly affecting the business dealing of American based businesses. We go there with the wrong business ideas assuming this belief and not only does it affect the intended business but also affects Chinas future dealing to American based businesses.
One major factor that we as Americans dont see and I personally believe to be one of the most overlooked issues with regards to business in China is the competition of other nations and countries trying to do business in China including China itself. Lets face it, China can do business with Italians, British, Dutch, Japanese, Africa, thousands of Chinese businesses just like yours, and the list goes on. With China you are dealing with global competition. Everybody wants their product to be as cheap as possible to make and able to put more of their product out there to be sold. The competition is enormous compared to the United States and American based firms and with that known you may have been overestimating your product the whole time.
The list could go on forever it seems like because we are both evolving and adapting to changes in our lifestyles in a continuous cycle. If you really want to do business in China you must not forget the basics. Be respectful, build a relationship, prove to them the advantages of doing business with you, and then you will have laid out you basis for the opportunity to achieve your business success in China.