First steps of doing business in China

Like any export activity, a thorough understanding of the market will help to underpin the sales proposition of your products. China is no exception and a number of tips for doing business are outlined here:

• The appointment of a good agent in China is essential, especially if your sales staff are non-Chinese nationals. Always identify an individual who understands your market place. The UK trade desk at the DTI is a good starting place for information regarding agents.
• If the local agent does not have a good command of English then a good technical translator will also be required. However many of the young Chinese have learnt English or have moved to China from Hong Kong.
• Plan and make good your time. China doesn’t stop. A good agent will look to maximise the time for visiting as many people as possible within 24h days!
• Be very aware of the culture. In the majority of cases a company business transaction is linked with the local government, regional official or even mayor.
• In the case of manufacturing or service requirements be clear of the technical strengths of your partner. Be very clear of the quality specification that you require. For example a grade of steel in the UK is NOT the same as similar graded steel in China. Double-check in the UK all raw materials before agreeing the specification.
• There is a risk associated with trading with less established Chinese businesses in more obscure locations. However there are big financial gains to be made if the implementation is handled correctly and ongoing training is given to the workforce.
• If your product has some patent or IP surrounding it then think carefully about manufacturing it in China. Clones have been known to surface in the market place with other products. One way around it is to semi-finish the goods in China and complete the manufacture of the goods back in the UK or Europe.

If you would like to know more information on doing business in China then please do not hesitate to contact us at info@wsqsolutions.com or see our website wsqsolutions.com for more details on how we help businesses to grow and develop profitably.