Common Business Challenges In Common Business Challenges In ChinaChina

Colorado Springs Office of International Colorado Springs Office of International AffairsAffairs

Presented ByPresented ByJason Christie Jason Christie Jason@apaccess.comJason@apaccess.comAndre Janusz Andre Janusz Andre@apaccess.comAndre@apaccess.comRalph Pollock Ralph Pollock Ralph@apaccess.comRalph@apaccess.com

www.apaccess.comwww.apaccess.com

AsiaPacific AccessAsiaPacific Access

01/11/2006

Doing Business In China

China

01/11/2006 Common Business Challenges in China: Colorado Springs Office of International Affairs

AgendaAgenda

• Language & CultureLanguage & Culture• Interpersonal Relationships Interpersonal Relationships • China’s GovernmentChina’s Government• Management IssuesManagement Issues• Information Validity Information Validity • Intellectual PropertyIntellectual Property• RecommendationsRecommendations• Q & AQ & A• ResourcesResources

01/11/2006 Common Business Challenges in China: Colorado Springs Office of International Affairs

Language & CultureLanguage & Culture

• The meaning of “Yes”The meaning of “Yes”• One Nation – 31 MarketsOne Nation – 31 Markets• Hands in many placesHands in many places• NegotiationsNegotiations

01/11/2006 Common Business Challenges in China: Colorado Springs Office of International Affairs

Interpersonal RelationshipsInterpersonal Relationships

• NetworksNetworks• FamilyFamily• BusinessBusiness• GovernmentGovernment

• Individuals vs. CorporationsIndividuals vs. Corporations• ““Guanxi”Guanxi”• Long-TermLong-Term

01/11/2006 Common Business Challenges in China: Colorado Springs Office of International Affairs

China’s GovernmentChina’s Government

• Central GovernmentCentral Government• Provincial & Local Provincial & Local

GovernmentGovernment• CorruptionCorruption• NationalismNationalism

01/11/2006 Common Business Challenges in China: Colorado Springs Office of International Affairs

Management IssuesManagement Issues

• EducationEducation• Talent ShortageTalent Shortage• Effects of Cultural RevolutionEffects of Cultural Revolution• A Country of EntrepreneursA Country of Entrepreneurs

01/11/2006 Common Business Challenges in China: Colorado Springs Office of International Affairs

Information ValidityInformation Validity

• AvailabilityAvailability• IncompleteIncomplete• InaccurateInaccurate• BiasedBiased

01/11/2006 Common Business Challenges in China: Colorado Springs Office of International Affairs

Intellectual PropertyIntellectual Property

• Piracy and CounterfeitPiracy and Counterfeit• Lawsuits in ChinaLawsuits in China• Beijing’s IPR commitmentBeijing’s IPR commitment• Issue for Domestic companiesIssue for Domestic companies

01/11/2006 Common Business Challenges in China: Colorado Springs Office of International Affairs

RecommendationsRecommendations

• Study Chinese Culture & Study Chinese Culture & HistoryHistory

• Learn a few words & phrasesLearn a few words & phrases• Have Patience for Have Patience for

relationshipsrelationships• Find Qualified HelpFind Qualified Help• Perform Due DiligencePerform Due Diligence• Use Your TranslatorUse Your Translator

01/11/2006 Common Business Challenges in China: Colorado Springs Office of International Affairs

Q & AQ & A

01/11/2006 Common Business Challenges in China: Colorado Springs Office of International Affairs

ResourcesResources

• Organizations:Organizations:• Colorado Springs Chinese Cultural Institute Colorado Springs Chinese Cultural Institute

( www.cscci.org ) ( www.cscci.org )• Mali Hsu 719.201.8373Mali Hsu 719.201.8373

• Books:Books:• One Billion CustomersOne Billion Customers by James McGregor by James McGregor• Mr. ChinaMr. China by Tim Clissold by Tim Clissold• China WakesChina Wakes by Nicholas D. Kristof and Sheryl by Nicholas D. Kristof and Sheryl

WudunnWudunn• Mandate of HeavenMandate of Heaven by Orville Schell by Orville Schell• The Chinese Tao of BusinessThe Chinese Tao of Business by George T. Haley, by George T. Haley,

Usha C.V.Haley and Chin Tiong TanUsha C.V.Haley and Chin Tiong Tan

• Encountering the ChineseEncountering the Chinese by Wenzhong & by Wenzhong & GroveGrove01/11/2006 Common Business Challenges in China: Colorado Springs Office of International Affairs