Business location - China

China: Seven Tips for solving the China-Challenge

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Tip 5 – Accelerate your market launch: Medium-sized companies that are not yet represented in China must consider the rate at which they enter the market to be as important as the decision criteria like the level of investment and intellectual property protection. The classic Joint-Venture partnership is rightly viewed with scepticism and we don’t recommend it. Currently for an estimated 99 % machine building companies in China there is no legal Joint-Venture obligation. An option to speed the entry into the market could be a partnership with a Chinese investor unfamiliar with the industry or a private investor. This increases the complexity but still this alternative is worth considering in view of a speedy entry in the market under certain circumstances.

Tip 6 – Make Human Resources your top priority:Taking into account the rapid increase in wages in China most German companies feel their biggest challenge is the staff. Therefore, German mid-sized companies must also understand the staff engagement, the connected protection of the know-how and motivation of the personnel as factors for success. The cultural differences and their implications for the on-site leadership style and communication style must be adequately considered. Then again Chinese employees want to be treated just like their colleagues in Germany, i.e. with respect and a long-term development perspective that too honestly and reliably. Also please make absolutely sure that Chinese employees get satisfactory meals, in China this is a personnel measure with the best cost-benefit ratio.


Übrigens: Sorgen Sie unbedingt dafür, dass die chinesischen Mitarbeiter zufriedenstellende Mahlzeiten bekommen – in China die Personalmaßnahme mit dem besten Kosten-Nutzen-Verhältnis.