Building business in China is a hard task!
1- Build Chinese mind-set + Flexibility
Companies should have Chinese-minded entrepreneurial goals, shaping their business to perfectly fit Chinese society. Flexibility is a must. Shaping businesses already working well in other countries, is mandatory. A profound adaptation drive, heavily required.
2-Use malleability, don’t oppose it!
Given the low level of predictability of Chinese market, shaping the business is not a one-and-only effort, but a continuous exhausting challenge in everyday business life. Malleability of the market alongside unpredictability are major concerns for all companies in China.
The degree to which a company can influence competitive forces, or malleability, is characterizing growth rates, industry and social demographics, creating incredible opportunities for newcomer business, especially in medium-sized cities like Hangzhou.
3-Start from scratch
Innovation spillover and know-how has to be reshaped in Chinese market. Businesses have to start from scratch, since starting point onward. Partnering with key stakeholders, Chinese university and research laboratories is an important innovative effort that will definitely prove successful. Of course, banks and government officials can be painful subjects to deal with, and partnering with them both can be a great move.
4-Manage deficiencies
Merger and Acquisition (M&A) joint ventures, and contractual alliances, can play a role in global business building strategy, and are becoming more frequent. Attracting new talent is highlighted by many as the basic strategy in business management, leading to development of high capabilities and management of lack of significant deficiencies.
5-Persevere!
Global businesses face lack of high levels of perseverance and problem solving skills. For these reasons, global firms face enormous competition from local companies. In 2011, 80 percent of the most preferred employers were Chinese companies, up from 50 percent in 2007 (Caye et al., 2012). The wage rate is increasing more than productivity and the supply of skilled graduates does not meet the higher demand, causing market inefficiency and a “shortfall in talent” (Bel, 2014). Attracting new talents, and leveraging
Chinese innovation activities to international know-how and value chain, are the hardest challenges in today’s Chinese market business development.
Trading to the world 