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Archive for July, 2007

How to do business in China

Tuesday, July 24th, 2007

The economic explosion of China

China is one of the most promising countries of this 21st century from an economic standpoint. The economy is soaring. China is one of the only countries that experience a two digit growth. The size of the Chinese market is huge. China was the first country to reach one billion people, and they are now close to 1.5 billion.

A short trip to Shanghai allows a quick evaluation of the country’s rate of economic development. Wherever you look you will see cranes. Constructions of skyscrapers are everywhere. They replace the traditional three or four story homes. It is said that if you go to Shanghai once a year, you will not recognize the landscape from one visit to the next.

The emergence of China goes together with an uprise of the quality of life. There is now a large, wealthy middle class in the major cities.

From an industrial standpoint, Chinese companies are in constant development. Very competitive world-class companies are emerging. They are competing in global markets against the best American and European companies.

Between Modernism and Tradition

But China remains a traditional country in its approach to commercial trade. Deeply anchored into an ancient culture, the Chinese market is difficult to enter for a foreign company.

Business in China can only be done by relationships. You have to be properly introduced to the person you want to meet with by one of your relations. It is unthinkable for example to pick up the phone and call a company to try to sell your products. This practice is considered provoking, even insulting, and certainly opposed to traditions. You will most likely close doors if you try to go this route.

This seems unthinkable for a European or an American, used to a market-driven economy. It seems like good business practice to them to pick up the phone and call a prospect. A CEO can call the CEO of another company to discuss synergies between their two companies. Not in China.

You also need to know that Chinese society is very hierarchical and seniority is a dominant factor. In a company the oldest person is generally the highest ranked person as well.

Many companies fail their introduction to the Chinese market, either by ignorance of the local customs, or by thinking that economic development would change the traditions. But the companies that succeed are the ones that adapt to the Chinese culture.

You must have a sales representative

You cannot call prospects directly. How can you make business then? Find a local sales representative. Only he will find the necessary connections that will introduce your company to your prospects.

When choosing a sales representative, make sure that he has the right connections in the industry you are targeting. Choose an experienced person who already has a full address book. A sales representative that is already in your industry, or that represents other companies in your industry, or that worked for your competitors, will be the best sales agent.

Seniority being an important factor, make sure that your sales representative is old enough to be respected. A sales representative that is less than 40 years old will generally be less respected and his opinion may not matter as much.

You can find the original article under the name “Find a Sales Agent in China” by clicking here.

Touring the Great Wall of China

Tuesday, July 24th, 2007

The Great Wall is the most significant symbol of China which has become one of the widely known artificial constructions in the world today. This structure has contributed to the development of China’s history and continues to pay a major role in the culture and tourism development of China. Travel to China without visiting the Great Wall is like not accomplishing anything which is the reason why many people want to start off their China tour itinerary in Beijing. Aside from the historical feel of Beijing, it is the best city in China to visit the Great Wall. A brief history about the Great Wall tells us that it was built over two thousand years ago as a key to protect the agricultural lands from invasion. The wall was built in sections in between years by peasants, villagers and prisoners; which also reflects the reason why the different sections of the wall portray different looks due to the types of materials used in the construction. These materials varied from grass, stones, earth and wood. Although the construction of the wall started in the early seventh century B.C., it was later during the Qin dynasty; the sections were further built and renovated to become a whole structure. This was the period when China derived its English name from the word “Qin” pronounced as “Chin”. Today, the Great Wall of China stretches to a length of over 6,700 kilometers winding through hills, cliffs, plateaus and deserts from across the east coast to the northwest of China. At present, there are nine sections of the Wall opened to tourists from all over the world which include Liaoning sections of the wall, Hebei sections, Tianjin sections, Beijing sections, Shanxi sections, Shaanxi sections, Inner Mongolia sections, Ningxia sections and the Gansu sections. However, out of all these sections, the most visited are the sections of the Wall in Beijing; this is because the wall is well preserved and showcases the remains from the Ming dynasty, an era when the wall was in tremendous construction. The main sections of the Great Wall in Beijing are: Badaling, Simatai, Jinshanling, Mutianyu, Gubeikou, Huanghuacheng and Jiankou.

Badaling section is famous for it imposing structures, completeness, and the famous Juyonguan Pass. Most of the pictures of the great wall published in guidebooks were taken at the Badaling section of the Great Wall. The Mutianyu section also provides great viewing pleasure for tourists. Jinshanling, Simatai and Gubeikou sections of the wall is narrower and quieter than the Badaling and Mutianyu sections of the wall, while the Huanghuacheng and Jiankou sections have become an ideal choice for adventure hikers. The fascinating aspect of the Great Wall is that no matter what section of the Wall you visit, the outstanding engineering of this structure tells you a lot about the history of China.