China is one of the most sought-after marketplaces in the entire world. Many companies are looking to do business there because of the huge potential that the country offers. Business owners looking to establish a base in China need to know what to expect when they are first starting out. This post discusses a few important details about doing business in China.
1: Relationships Matter
In the U.S., there is an attitude that “time is money” and many businesses want to move things forward as quickly as possible. Depending upon the circumstances, business owners may never meet, simply taking care of everything over email or over the phone.
The business culture is completely different in China. There, things have to go at a much more leisurely pace. It is important that business owners put in the time to develop relationships with their partners to help establish a strong base from which to build their entity.
In addition to building a healthy relationship with the Chinese companies you will be working with, this extra time will allow you to be sure that you have prepared yourself fully for doing business in the country. Just like in the United States, deals go south all the time. The more that you have done to protect your products and intellectual property the more options you have when you start encountering challenges.
2: The laws are almost constantly changing
China is a huge part of the global economy, yet there are still some areas where the country is still trying to catch up to other marketplaces. There are significant gaps in the laws that cause problems for business owners, and officials want to react quickly to close up some of these potential loopholes.
When going through the process of preparing to do business in the country, be sure that you understand exactly what you need to do at every step. Keep a close eye on existing regulations because they are revised frequently, and some of these changes could have a negative impact upon your company.
3: You need an attorney experienced with business law issues in China
This is perhaps the most important thing you need to know about doing business in China. An experienced attorney will be crucial to the success or failure of your company. You will be able to feel confident that you are protected in the event that your business needs to take legal action to protect your rights in the country.