The Wall Street Journal’s Venture Capital Dispatch recently had an article setting out China business basics (h/t to Silk Road International). The article is entitled, “The Do’s & Don’ts of Business in China” and though it is, well, rather basic, it is right on point.
It starts out talking of the opportunities in China, but then notes that “protecting intellectual property, establishing Chinese partnerships and adopting the right business strategy are some of the few obstacles that stand in the way.”
It then provides the following pearls of wisdom on doing business in China:
- “Companies need to avoid bringing Western business ideas straight into China. It’s not always transferable,” says Savio Kwan of A&K Consulting.
- “Overseas businesses need to tailor their products specifically to the Chinese user, and in particular consider the average GDP per person and adapt product pricing,” says Hermann Hauser of Amadeus Capital Partners.
- “Even though IP protection has improved over the last decade, there is still the question of whether a national patent is as secure as an international one, and if China’s legal system will enforce patent rights, which can be a ‘complex and torturous’ process, so you need the right relationships, says Adam Cooke of DLA Piper.
- Opportunities for overseas companies in China can be found in health care, food, education, entertainment and services that cater to the aging population, according to fund managers speaking in London.
Nothing earth shattering here, just good basic (okay, really basic) common sense.
What do you think?