[AL]: Although the importance of building relationships has been emphasized in the West, I feel that having a good network of relationships in China is the most important aspect of doing business here. Not to sound cliché, but it’s true what they say, that you can’t do everything by yourself, and that eventually, you will need help from other people. When you work with other people, your rapport with that person can act as a multiplier. When trust is high, productivity can sometimes grow exponentially. The reverse is true as well. If you have a bad relationship with someone you have to work with, things will be that much harder to get done. There will be more challenges and obstacles to overcome. Whether that may be a vendor, a strategic partner, or even a client. The stronger the bond is in the relationship, the further you can go together. Not everything in China is as straightforward as it is in the West. There may be unforeseen circumstances, issues and challenges that you can’t plan for or you may not even understand. Or you may not even have the capacity to handle them on your own. This is when having a good network can really go a long way. Cultivate your relationships and treat them like gold.

Another shift in mindset is the concept of being flexible. There’s a good Chinese proverb that says that it’s better to be a blade of grass than a strong oak tree because when the wind blows hard, the blade of grass can sway in the wind but the oak tree will snap… or something like that! Due to the foreign complexities of doing business in China, there will be considerable cultural differences from strategizing marketing campaigns, to the way you manage employees to even your demeanour when talking to clients. If you stick to the rigid ways of doing business that you were taught and know, then you may hit a brick wall. By learning to be flexible, you won't get bogged down and can keep the momentum going. That’s important when dealing in an environment that sees more greys than black and whites.

[AL]: Learning the local culture and traditions is paramount when doing business in a foreign country. Although, my background is ethnically Chinese, my parents are from Hong Kong and I was born and raised in Canada. My first experiences of being in China were similar to that of any non-Chinese Canadian that has never been to China; or at least that’s how I felt at the time anyway! Taking the time to get to know the culture and especially the nuances of doing business in China is definitely an asset worth investing in. Keeping an open mind about all things is not always an easy task. I feel like entrepreneurs in general are quick to judge. They have to be. The need to size things up and to make a business decision is a skill that is quickly developed and very necessary as there is no one else to make the decision! I try to keep a flexible mind and a curious attitude so that I don’t shut any doors that may lead to potential opportunities.

[AL]: Yes. This is an inevitable fact. As any society becomes more and more developed, the need for foreign expertise will decline as homegrown talent emerges. With a population of 1.4 billion, China has a lot of minds that can eventually replace foreign talent given the right education and training which China is ever-improving on. Of course, the West will continue to innovate and produce top minds in their respective fields due to their inherent culture of cultivating and nurturing creativity and self-expression that China may not yet have caught up on, but that gap is closing fast.

Every industry is different so I can’t comment on other industries but it seems to me that for foreigners to become competitive, they need to provide value where their local counterparts lack. In other words, they need to have a comparative advantage that is worth the extra cost of working with a foreigner instead of a local. That may be expertise, or industry knowledge, or soft skills like leadership ability or even having the capability to become cultural bridges to China that Peggy Liu spoke about in TEDxShanghaiWmn 2013.

[AL]: What isn’t a challenge doing business in China!? Knowing who to trust is a big one. As mentioned earlier, you can’t do everything yourself so eventually you will need help from others and if you have people around you whom you trust, then that’s extremely important. This goes back to having really good relationships. Another related point is finding good people to join you on your vision to build a great company. This is a challenge for all companies around the globe but one that is even more crucial to success here in China I would say. It seems like staff turnover is especially high, perhaps due to the volatility of the markets or the rapid growth of societal wealth.

[AL]: CanCham is useful in that its mission is in helping their members grow their businesses. Every entrepreneur is limited by their time & resources, so partnering with CanCham is like hiring a Business Development Manager except with the added benefit of already having a pretty large network to play with. CanCham does a good job in bringing everyone in the community together.

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