Rich-Link Business Services Ltd.

There are many attractions that can bring you to China: a huge potential market in a country

with world's largest population, lower operational costs and higher bottom line if you move your manufacturing there with lower labor, land and other costs, and a policy environment that encourages investment. In addition, an obvious reason for investing in China is a continuously opening economy with China's entry into the World Trade Organization.

While you are encouraged by these advantages, have you carefully considered the difficulties you may encounter in this completely different culture? Actually, difficulties exist everywhere:

language, communication, lack of experience dealing with Chinese officials and businessmen,

no accesses into Chinese market and business communities, excessive and unnecessary

spending that increases operational cost, understanding of the continuing ramifications of the

planned economy and the "socialist market economy", confusion about Chinese laws and

regulations and the way Chinese officials handle business, even food, entertainment and

culture - how to avoid behavior that can be deemed as rude in China or understand Chinese

behavior that in a Westerner's belief is rude? It's not easy doing business in such a unique environment! Here are some examples:

Governmental officials Not all governmental officials possess the level of professional expertise that Westerners might expect. Working with them can present special challenges.

Their methods of handling relations with businesses can be substantially different from those

customary in your country. To avoid annoying delays caused by an inefficient bureaucracy,

you need the assistance of someone who knows how to expedite official processes.

"Guanxi" This unfamiliar Chinese word simply means "relationships" or "connections".

While good relations and connections are important everywhere in the world, "guanxi" plays a

more vital role in Chinese society. Chinese people typically trust people they know well. In

order to do business and navigate governmental processes, you must find people skillful in

helping you build proper "guanxi". Good "guanxi" does not mean a connection to a certain

governmental official or a business organization, it means a web of connections.