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Due Diligence on Chinese Consultants
By andrew | February 24, 2007
Entering the China market is a double-edged sword. On the one hand, it is becoming more and more necessary to participate in the Chinese economy. On the other, finding reliable partners in China , or even locating an appropriate consultant or China business entry expert is becoming a very daunting task.
For every China success story, there are dozens of tales of disappointment, misunderstanding and failure. We have all heard that to succeed in China , you need proper connections and knowledgeable partners. While that may still hold water, the definition of “ China connections ” has changed considerably in the past few years. Shady characters huddling together in smoke-filled rooms toasting with bai-jiu (semi-lethal Chinese liquor) and exchanging red envelops stuffed with bribe-money is OUT. Finding professional, internationally oriented businesspeople with solid track records of successful cross-border deals is IN. The only problem is finding the kind of partner you need.
If you are a novice to China and want to investigate the market potential, there are a few simple steps that can help you get started.
1) Find someone who has already done the legwork.
Shanghai , Beijing and Shenzhen are full of companies that have been started by other ex-pats, overseas Chinese, locals who have recently returned to China from the US and Europe and local Chinese who have a solid track-record of working with overseas clients. These entrepreneurial service-oriented companies should be your first stop.
2) Make sure you are not somebody’s first international experience.
You do NOT want to be the first overseas client or partner for a local firm. Even if they have the best intentions and the highest standards, international business is a different world from domestic Chinese business. They will learn hard lessons at YOUR expense.
3) Don’t say NO to other westerners.
There are plenty of Americans and Europeans who have already walked this road. Look for your countrymen who have been in China for 2 years or more. They already know what you are up against, and will be able to give you invaluable advice and perspective. One of the main challenges in China is knowing which questions to ask. There are plenty of other westerners who have spent the last few years knocking down some walls and slipping around others. Let them show you the way.
Use DiligenceChina.com to start your search for professional support and partners. Do as much research from your home-base as possible – but do plan on investing the time and fund to visit China and meet as many people as possible. Shanghai is a sophisticated town, and professionals are expected to put in the “face time”, just like in New York and London .
Topics: General China |
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