Why seek business opportunities in China? There are some reasons why people should stop and take notice. Based on records that are available the China is considered as the second largest economy after the United States in the world.
The estimated Gross Domestic Product of China amounted to $7 trillion while calculating with the Purchasing Power Parity. While being the second largest economy in the world may have its pros and cons, but certainly the number of pros far outweighs the cons.
If the economy of China is so enormous, then one thing that can be deduced from it is the fact that some opportunities can be taken here. And the unique way to get it is to know where it is and in what industry or sector. Now the country is blessed with abundant natural resources, and some industries are seen in the country right now that help it grow in leaps and bounds.
But the two imperative sectors agriculture economy and trade economy. These two are the traditional source of income and employment for the majority of the Chinese population. These two sectors employ over 70-percent of the labor force of the country. The income that was sourced from these two areas accounted for more than sixty percent of the country’s GDP. These two sectors differ in many ways and are often seen as the ones that push the dichotomy between the wealthy and the have-nots. Even though it may happen, the participation of these two sectors have succeeded in employing the majority of the people in the country and helped other people from other nations gain employment as well.
Aside from these two booming sectors, the steps were taken by the government and its plans contribute to ensuring that the business climate in the country will be suited to those who are seeking employment and to those who may want to do business in China. Business opportunity did come in many forms when these government initiatives were put in place. One of the major steps done that made the country competitive and friendly to business entities is when the country was opened up in 1979. The moment the opening up of the economy was made official; the state economy has grown to record levels and has become steady ever since. To facilitate growth in the country and to encourage more business opportunities, the government adopted the five-year strategy for economic development and the more recent 11th Five Year Plan.
Steps like these that are made by the government have enabled the country to be more competitive and in the process making a China trade one of the most sought after business out there. It is expected that country economy will still grow and will continue to be the biggest in Asia. So for the business person on the look-out for opportunities, certainly a China investment is part of the plan. Doing trade with a large economy like this country has its many benefits for sure.
How to do Business in China
As the country is the fourth-largest country in the world if we speak of the size, and this is also considered as the largest one regarding population. Based on some economic indicators, the country is considered as the biggest economy in Asia and the second biggest economy in the world. Just stated the country is a safe and a prosperous nation that offers many opportunities to the prospective investors and business people. But not everyone can do business in the country since some factors will always come into play. And others may think that doing business in the country is easy.
But hold that thought for a while. Doing business and establishing a business in China may look easy and convenient, but a close inspection of the country and how it works will reveal that building a business in the country is complicated and hard as well. Here are some usual tips that can help the first time business person in the country. One suggestion is not to rush it. Western visitors may be deadline oriented, but in China, the people may be both slow and fast at the same time. It is important as well to build relationships, rather go directly to transactions. It is accepted that almost all of the successful sales in the country was a result of the cultivation of the relationships between the Chinese and their foreign partners.
Also, it is suggested that a person and more importantly the business person should know the meaning of guanxi as pronounced as was sure. The inner thought of the concept is doing your business through a value-laden relationship. This will prove helpful when the situations and the government are highly centralized and where the use of personal contacts is the only way to get all those things done. This is part of the China business culture that needs to be understood as well. The concept may appear like the opposite and the counterpart of the commercial legal system or the Chinese laws. That when the laws are weak, then the business person have to be sure that his guanxi is strong as this will be the one that can carry the business to success. The Chinese take contracts seriously. They believe in finishing the contract as a means to foster healthy relationships.
Since to do business in China necessitates for a person to learn the complexities of the language and the culture, then it is suggested as well that the foreign business person should have a Chinese or a local partner. An able partner in the field who knows the custom and the traditions of the Chinese is sure to bring benefits for the business person. The partner can do the job for the business person to seek the most important person in the room since not all of the bosses have a significant say on business transactions. Respect the face of everyone as well since Chinese takes look seriously. And of course, it pays to know the tricks of the trade. Knowing all these things and knowing a thing or two about China business culture are just the right steps for the business person to tap the huge business opportunity in the country.