China has been largely insulated from the worst effects of the global downturn. The country’s economy is expected to maintain high single-digit growth over the coming years, far outstripping the developed world. China will be a keystone for sustained growth for companies that can navigate the challenges and succeed there.
However, China has a long history of confounding companies that want to do business there. Strategies that work elsewhere need to be reexamined to take into account the idiosyncrasies of the Chinese market. This book examines the strategies that have succeeded and those that have failed. Chapters examine the broad range of political and economic realities that one faces working within the Chinese market: how to assess the market and manage corporate expectations; corporate structures; negotiating legal and tax issues; manufacturing and distribution; making acquisitions work; dealing with corruption and financial crime; attracting and retaining talent; the importance of establishing and maintaining relationships (guanxi); corporate governance; social responsibility.
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Christopher Torrens is a China specialist with Control Risks, a global consultancy, and was its director of corporate investigations for China. He has worked in China for 16 years and speaks Mandarin. He holds an MBA from the China-Europe International Business School and a BA Honours degree in Modern China Studies.
China is largely insulated from the worst effects of the global downturn, thanks to several factors: its banks have limited links with the international financial system; its institutional and regulatory apparatus is increasingly robust; mainland consumers enjoy low levels of debt and one of the world's highest national savings rates; and private consumption is rising steadily among the country's fast-growing middle class. China's exporters may be doing less well now but the domestic market offers huge opportunities, and the country's economy is expected to maintain high single-digit growth over the coming years.
Many firms have come unstuck in China, often thinking mistakenly that it would be an easy market to crack and that they could rely on their strategies for developed markets to operate in mainland China.
This book examines the context in which businesses have to operate in China, the strategies that have succeeded and those that have failed, and it assesses the importance of a range of different factors in making sure any business venture in China is successful.
The book contains ten chapters and a number of appendices:
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