Source Code China: The New Global Hub of IT (Information Technology) Outsourcing

Chapter 5. Ten Lessons Learned

One of the first questions I am invariably asked when I meet people, both Chinese and non-Chinese, is how long I have been in China. As noted earlier, I have been here since 1994. Regardless of who the person is, that answer is almost always met with some expression of surprise (although Chinese people then ask why my Mandarin isn’t better).

It has been fascinating and rewarding so far; the speed of change here is so rapid that sometimes I need a neck brace—I think I have got cultural whiplash!

Although I would be the last person to be considered a China expert, more than a decade of experience does provide some insights into doing business in this country.

Here are some of the most important insights and lessons that I have learned from running my business here; they can both help you with your own pursuits in China and in selecting a partner in the China market.

What Works Elsewhere Does Not Necessarily Work in China

Just because a particular plan or strategy works somewhere else does not necessarily mean it is going to work in China. Most business people based outside China invariably draft their plans to expand in the China market based upon commonly accepted international assumptions, operating standards, and Western performance metrics, especially revenue-wise. These plans are made using the experience that created the overarching framework upon which a given company has based its success elsewhere.

When the first team—the “sacrificial lambs”—is sent ...