Doing Business in China For Dummies®

Buckle Your Seatbelt: Preparing for Common Challenges

For many people, the challenge is one of the reasons that succeeding in China is so rewarding. Here are some common obstacles to prepare for.

Gaining trust

Trust is a big part of doing business in China. The country doesn’t have a credit rating system, so a lot of business is done on faith. Earning trust with the Chinese is a challenge, but you want to earn it, so be patient. Don’t be surprised if your business is moving slowly until you’ve earned the trust of others. Then it’ll start picking up speed.

Ironically, Chinese people are often less likely to trust other Chinese than they are to trust an outsider. In fact, some Western businesspeople in China question whether employees’ inability to trust each other will prevent Chinese companies from becoming true global competitors. If you’re going to be managing Chinese employees, understand that they’re usually suspicious of each other. You’ll have to work hard to encourage your employees to be open about their work and cooperate.

Although the majority of people you meet in China are fair businesspeople, some people may try to screw you over, so don’t trust anybody too much. Don’t give people too much access to your proprietary knowledge or too much money. And don’t make it obvious that you don’t trust them, which can cause them to lose face. If push comes to shove, though, letting people figure out that you don’t completely trust them may be a lot cheaper than a major mistake ...