INDUSTRYOPINION
For those able to commit the time, money and resource, taking part of your business to China can be one of the shrewdest moves you’ll make. However it’s easy to fall into the trap of thinking that China is this ‘exceptional’ place where profits and improved output come easily
There has always been a worry with sending sensitive IP to China as the laws are different and indeed the culture is not the same as it is in the west. However recent moves from the Government and judiciary, along with several rulings in favour of companies seeking to protect their IP, have shown that good progress is being made and, if sensible steps are taken, there is a greatly reduced risk of any IP being compromised. In fact the vast majority of IP related legal cases are now just between Chinese companies and this internal pressure is helping to drive the IP protection rules.
Strength in support 30
The first thing to consider is that taking part of your business to China is not easy, particularly the first time, and securing help or support is essential. This can either come from a business with experience in China or from a government body such as the UKTI in England, who can recommend locations and local trade groups. In China there is a lot of bureaucracy to negotiate, although thanks to the benefits of affordable labour this is something that can be easily outsourced.
Finding the right location and staff is a time consuming task and one that the whole success of the project depends upon. Having the right manager in particular can be the difference between making and losing a lot of money. The local Chinese groups are great in helping you to get started but not in finding the right person so
Finding a local partner There’s also a lot of bureaucracy, even compared to the most diligent of UK and US groups, the amount of paperwork in China is something else entirely. While this can be affordably outsourced it’s another thing that you need to keep a close eye on, particularly in the early stages of any business. Many rules and regulations are not written in an accessible format (presumably somewhere, but no one seems to know where), and you can only find out by going and talking to the authorities.
Another aspect of this is that it’s important for those back in the country of origin who are working with the China office to see and appreciate the country and the way it works. Even the most sceptical project managers at Sondrel were amazed after their first visit to China. Both in terms of what is available there and the advanced technology that is being worked on.
For those able to commit the time, money and resource, taking part of your business to China can be one of the shrewdest moves you’ll make. However it’s easy to fall into the trap of thinking that China is this ‘exceptional’ place where profits and improved output come easily. Key to this is finding help and support early on, both in the right staff and through state agencies like the UKTI in the United Kingdom or companies specialising in the bureaucratic process as well as a strong understanding of the technology.
© 2011 Angel Business Communications. Permission required.
be prepared to put in the hours interviewing to find them. Having this person is key as it’s impossible to over-state the differences in language and culture for the uninitiated. The problem is finding someone that you can trust and can deliver. Mess that up and you’ll waste months. For the first 12 months it’s important to keep a close eye on operations, even with a local manager you should be sending someone to visit at least once a month. Partly this is because it’s not always easy to get a straight answer, we’ve left several meetings only to realise a few hours later that we didn’t actually get the right information we were after.
www.solar-pv-uk.com Issue III 2011
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