Partnering with Chinese Companies for US Business Success

Would US companies be better suited trying to "go it alone" in China or to partner with a company that will provide tangible assets and other services for the US-based MNC? What stumbling blocks might exist when partnering with a company in China? After reading the article I believe that a US company will partner up with a company that will provide them with tangible assets and other services. As the fastest-growing major economy in the world, China continues to offer global companies attractive investment and business opportunities.

However, doing business in China also means navigating the complexities that arise from China’s unique historical, political, and cultural contexts (Burkitt, 2012). Establishing a company in China can be a trying and tedious task requiring elaborate approval and registration procedures. Despite the challenges, leading US companies are succeeding in China by developing collaborative relationships with Chinese stakeholders and demonstrating the agility to continuously adapt their strategies to the country’s dynamic environment. Applying for approvals from various authorities is common in China.

Navigating China's complex business and regulatory environment to submit the applications to the right channels is an extremely tedious process that the enlightened businessman would rather leave to a partner in China. These companies are positioning themselves for long-term success by embracing the Chinese proverb qiu tong cun yi, which means “seeking similarities while respecting differences. ” In doing so, they are co-opting China’s long-term interest in stability and prosperity into their business strategies, China investment regulations and compliance issues (Chu, nd).

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China is doing business more and more the American way, but non-Chinese executives still must work hard at building trust in relationships with their Chinese business partners. Chinese business strategy has changed a lot, and they adopt western practices (Chau, 2012). Cultural misunderstandings and stereotypes are one of the main causes of business failures, when doing business overseas. You should be able to share your vision and enthusiasm, with a good partner, who can bring expertise in the areas in which you are inexperienced.

Having a partner from China with a good reputation and should be someone who understands the legal and financial responsibilities endemic to sharing a business, most importantly, it should be someone who has a good relationship base business culture of China; it might be advantageous to learn about some basics of the Chinese language, culture, history, and geography (Csanad, nd). If done so, your Chinese potential business partners will take you much more seriously, and you will have more chance of being able to get the business with whom you get along and also to keep up with frequent regulatory changes can prove daunting for businesses.

There are some barriers in doing business in China, because we must learn the cultural and religious differences. One con is that most Chinese business activities and deals are made through face to face interactions. To successfully launch a business in China you will need to travel to china and meet with your partners and employers unlike in the US they will do meetings on the phone and via webcam.

A pro, which can still be part of barriers, is that having a Chinese company as a partner they can help you with land and buildings, because they know the country and where the best place would be the con to that is that you have to rely on someone else, to do the leg work with you. Another barrier is that the US likes to work direct and have upfront communication while the Chinese are the opposite; they are indirect and try to avoid accountability for making business decisions, the US always like to take accountability and deal with things head on.

A barrier that must be overcome is that American’s tend to be overly friendly, patting each other on the back and saying good job, whereas in China that is not done, patting someone in the back can be construed as aggressive and insulting. I have to say that the barriers can be overcome, but it will take time, it’s just a matter of getting use to the cultural differences. This will take time, but it can be achieved.

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