Working with China – key tips
I came across a good story in the Summer issue of Bright, the NZTE magazine that goes out to people interested in international business.
Key stories in this issue include coping with the international credit crisis; insights on trading in the Middle East; tips on perfecting your sales pitch; the world's growing bioeconomy; interviews with two members of NZTE’s China Advisory Board; carbon-labeling of exports; staying sharp in the adventure tourism market.
I want to highlight some salient points from the interviews with the 2 members of NZTE’s China Advisory Board, who have in-depth China market knowledge and have lived and worked in China for a long period.
If you have some time, do read the article. The 2 guys interviewed are:
David Mahon, Chair of NZTE’s China Advisory Board.
- Worked in Beijing for 25 years, heading a private equity firm Mahon ChinaInvestment Management Limited.
- He says change in China has been so great though that he says it’s largely his last two years’ of experience that are relevant to clients.
Andrew Browne, partner in a corporate communications advisory company, Beijing Brunswick Consultancy Ltd.
- Advises clients on business development acquisition and listing strategies.
- Previously worked for Reuters for 20 years and in 2007 won a Pulitzer Prize.
- Grew up in Hong Kong.
Some quotes from Mahon:
- “If you’re looking around the world and trying to see sources of global growth, China is one of the bright spots”
- “Brand New Zealand is strong but we lack unity. There are all these meat producers and wine producers selling fragments. We need to approach in a unified way – then Brand New Zealand can be protected.”
- “Language is important”. “I learned five words a day – no one can afford not to learn five words a day.”
- “Too often you see companies with a product in China and it doesn’t do well. China demands products unique to Ch
ina. For example, media is very culturally sensitive.”
Quotes from Browne:
- “What is it that China
needs? They need brand, technology, marketing and sales channels. You’ll see a very serious shopping expedition going out in search of all those things.”
- “It’s a truism that China is a complicated country”
- “We each have a vision which is only a tiny slice of the whole. For all New Zealand companies, it’s critical that they meet as many people as they can and get as broad a view as possible. The secret of doing well is asking the right questions.
- The economy has been far too focused on exports and heavy industry. The low-end sweat-shops
along the coast have resulted in excessive use of raw material and energy. In that sense, the old
model has run its course and was looking unsustainable before the credit crisis hit.
- “Would you advise a top Chinese company manager coming down to New Zealand to learn a little English? The notion you can send a senior manager to China without language is ridiculous. China is changing so quickly. Language gives you a feeling of engagement and
learning about the market.”
- “If you’re an architect, there is nowhere in the world doing building like China,”
- “Take parks. China needs parks; in the West, all the parks are there. Companies in the West that have long become dormant have sprung back into life in China. China is not something
to fear at all. China is creating vast opportunities across the manufacturing and service sectors.
- “If you’re a banker, China is your big opportunity. I’ve watched the private equity funds
of the world trooping through the lobby of CICC China Investment Corporation with their hats off.”
Also want to highlight an opportunity for Kiwi businesspeople to connect with Chinese investors and businesspeople at an upcoming event on 30 March 2009 – known as the International Sustainable Cities Forum. A delegation of high-level business and government leaders will be in New Zealand for 4 days to explore partnership opportunities.
It's the perfect opportunity for those wanting to do business with the Chinese to attend.