China is tempting territory for the ambitious but only for those with a high tolerance for risk. Many have stumbled in the quest for riches there. Here's a primer for newcomers from folks who've struggled—and succeeded—in China.
Be fair. The Chinese appreciate tough negotiating as long as they believe they are getting a reasonable deal in the end.
Build long-lasting relationships on a foundation of trust and respect. The Chinese tend to be cautious in their first encounters with Westerners but seek to establish partnerships that will last for years.
Maintain an open mind. Western business practices aren't always the best solution when doing business in China.
Know the rules. Beware of officials who offer to bend them for a newcomer. China is cracking down on corruption. Don't put your enterprise at risk with illegal practices. Expect intense competition. Chinese companies will leap at new opportunities with lavish low-cost capital provided by state-owned banks.
Don't expect a level playing field. Chinese companies will always have an advantage. Low-cost capital allows companies to provide goods and services more cheaply than foreigners can. Pricing is rarely stable.
Protect your intellectual property. Piracy is rampant in China. Take steps to safeguard innovations. Monitor global markets for rip-offs.
