20 Things I Have Learned About China

The other day while catching up on some reading, I came across a post on Fast Company called 20 Things I’ve Learned as an Entrepreneur, and it inspired me to spend 10 minutes and write down 20 things I have learned during my time in China.  It is a list that could easily grow in size, but in the spirit of the original piece, I decided to leave it as is … and then see where the comments take it.

1) There is no “China”, and there is no “Chinese consumer”.  This is a BIG country full of people and places that range in ways that are rarely appreciated.

2) There is no “Poorly Made in China”.  There is only poorly understood, badly planned, and horribly managed.

3) Consultants can only do so much of the work, and outsourcing the core functions of a company outright is a bad idea anywhere in the world.

4) Legal documents and due diligence are necessary steps (some say boxes to check), but that is just the beginning of the journey, and at some point a firm will have to walk on their own two feet

5) Quality control is a hands on process, and that goes double for any platinum ranked supplier on the Alibaba website

6) The RMB is a political distraction… just like “carbon”

7) If you have been in China 2 years, you can make it for 5… and if you have made it in China for 5 you will likely be here for 10… but if you haven’t left before you turn 10, it only gets exponentially harder to leave.  10 is THE barrier, and anything else will get you into grad school

8 ) There are no deals of the century, and there is no one on the other line willing to pay 10% more..  There are only suckers willing to pay a premium on bad deals

9) It doesn’t matter how much money your company has invested, or if your company employees 7000 people in China. The policies have changed, and the mayor is busy.

10)  China is an unfair playing field for EVERYONE. To win, there has to be a game.

11)  Chinese investors off-shoring their crown jewels is a sign that the conditions on the ground are changing… Changed that may not be for the better. Changes you need to take note of

12) If you find yourself at a dinner banquet, and you have the person next to point at a dish and say.. “that will keep you up all night”.. that doesn’t mean, keep you “awake” all night.

13) Guanxi either (1)As my good friend Jay Boyel once said “retires or goes to jail”  or (2) asks more of you than you will of it.

14) It’s not the white folks getting rich in China, and the West does not have all the answers.  Take the time to listen and learn.

15) The best negotiations are not coercive, but are collaborative

16) If you don’t like the food, can’t stand the air, or are afraid to leave the comforts of the Portman compound, then perhaps it is better to hire someone with a stronger sense of adventure to head up your China operations.

17)  Entering China with the goal of “exploiting” China’s assets is an old, and failed, business model.  Regulations are getting tighter, laws are being enforced, and NGOs are allowed to highlight the faults of foreign firms in China. Build a plan with a long term vision.

18) China actually may NOT need all the widgets that the West is trying to sell it.  That doesn’t mean China is closed for business. There are opportunities, some very lucrative, but it will take planning, investment, and execution to make things happen…. and, at time, you may actually have to compete with a Chinese firm who has skills that you cannot compete with

19) China’s rising ambitions and confidence will deflate when their economy meets sub-8% growth. Until then just grin and bear it.

20) All roads really do lead to China.  Some are one way.  some are made of dirt.  Some are riddled with potholes… but if China were a smooth 6 lane highway with functioning stoplights, it just wouldn’t be the same.  Strap yourself in, put both hands on the wheel, and enjoy the ride.

[Via All Roads Lead to China]