| What
are the first steps for someone looking to manufacture in China
?
Relationship, relationship, relationship ! This is absolutely
critical. Whereas Westerners prefer brief meetings and a direct
approach, to the Chinese, it is much more of a ‘courtship’,
with an emphasis on building the relationship. Make sure that
the people you work with can be trusted and make detailed investigations
of possible sites and companies to work with. . It is critical
to have a good communication infrastructure and appropriate network
of transport.
Do not be
tempted by subsidies and tax breaks offered by some areas –
these may be underdeveloped and the infrastructure may not be
there.
How
useful are government organisations (UKTI, Chinese government)
trade associations and other support bodies ?
We did not use government bodies for this but I can say that the
UK government were very helpful in providing background information
and resources to help to us to set up in the Far East. It’s
worth taking great care in appointing good independent advisors
in China.
Can
you suggest a few key issues to be aware of when moving your manufacturing
to China ?
Negotiations and agreements. In a dispute, don’t expect
a western approach to the letter of the law. . The emphasis is
much more on an approach which is fair and reasonable to all parties,
so the outcome can often be difficult to predict. And don’t
expect that with the signing of a contract that the deal is sealed
– contracts can be renegotiated !
IP can be
protected through separating the product amongst several suppliers
and/or keeping critical parts to yourself.
Saving face
– Mian Zi - is also critically important. Preserving
the dignity of the business partner is the highest form of diplomacy.
Try to find an alternative solution to a problem rather than saying
no outright.
China is
a potential goldmine but it can also be a jungle !
What
has surprised you most about working with China ?
The dedication and hard-working nature of the Chinese people.,
How
much time did you spend in China to get things started, and how
much does it take now ?
Initially, I was there every month for about ten days at a time
and this lasted for the first two years. Now I am there every
six to eight weeks for about seven days at the most.
Could you describe a setback you’ve experienced
in your Chinese operations and how you overcame it ?
So far no setbacks, in fact the relationship is stronger and stronger
all the time. It is because I am there for them and helping them
with products as well as they help me. In this way it is seen
really as proper friendship and bilateral relationship. I think
this is win-win attitude is critical for success.
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