DOING BUSINESS IN CHINA: 5 MISTAKES TO AVOID

The opportunity of the Chinese market is no longer to be proven. But many venture there too quickly, skipping the steps.
Whether you are in importors or in exporting with China, what are the main mistakes not to make in doing business with the Middle Kingdom?

1- Wrong choose your partners

When you look at the Chinese market, everything looks promising. As everywhere, however, some partners will be blameless, while others will cause you to suffer delays on payments, deliveries, quality defects ...

This is a serious problem. The amount of corporate debt has risen sharply in China in recent years. So much so that 80% of businesses in China are affected by late payments.

It is therefore best to avoid 100% virtual negotiations: meet with your partners and carry out the checks that are useful to you.

Depending on the nature of your business, it may be essential to use sourcing firms, which can become real partners.

2- Neglecting the language barrier

Nothing worse than a customer who makes no effort.
If you know a little about the language or you use a Translator in Chinese,your partners will be as grateful as they are admiring, and will certainly be much more open to negotiations.

Keep in mind that trading in China by speaking only English can bedifficult. However, investing in an english enhancement is a good idea.

Try to have the best possible accent. In China, as in other Asian countries, the way a syllable is pronounced can change its meaning. This affects their understanding of English, and having a strong French accent can be a real problem.

If need be, don't hesitate to call on your favorite translation company.

3- Believing that China rhymes with low quality and low prices

In China, the middle class is growing rapidly and is going up market. Gone are the days when "made in China" were only mediocre. If Chinese products remain cheaper than European goods, the difference is blurred: quality improves.

Notably thanks to beautiful companies, the most media of which are in the technology and communication sector: Xiaomi, Huawei, Lenovo. Their products compete with the best.

This is one of China's major trends in recent years: the upscaling. We know Lenovo for computers, several brands for e-cigarettes... For more and more industries, quality comes from China, not Europe. This is a fundamental trend that is bound to grow.

4- Mal balance the balance of power

You must not lose in your negotiations. Bargaining is common place in Asia and trading is often expected.

You need to position yourself on an equal footing with your partners. Beware of the misstep, it's all about skill. The art of negotiation is a profitable talent.

You will be far from your home market and your habits. A loss of benchmark may weaken you. Know how to surround yourself, especially if this is your first trip to China.

5- Focus on business by neglecting the human aspect

Don't give up your good manners and your life skills to a faster transaction. Chinese social relations are based on harmony, hierarchy and respect, so put the forms in your interactions.But above all, find out about Chinese habits, so you don't get surprised.

China has several millennia of existence, Chinese culture is rich and deep. Too many foreigners forget it, don't make that mistake.