SPOTLIGHT Business
The main principles of successful China relationships
John Poole from the Chinese Manufacturing Consultancy discusses the best ways to manage relationships with suppliers in China when manufacturing and buying or selling goods in the mainland
C
hina is the second biggest market in the world; according to the Centre for Economics and Business Research, it will overtake the US to become the world’s biggest economy by 2028. The study states that China will take the top spot fi ve years earlier than previously estimated – largely due to COVID-19 and the country’s strong response to it. As such, no one business should
ignore the fact that China is an important business partner.
The opening gambit
China has a population of nearly 1.5 billion people, with languages that categorise in seven main dialect groups, with Mandarin being the most widely used.
Like any country, China’s languages, traditions and culture can make it a daunting place for most Westerners, and often diffi cult to manage without the support of a Chinese host. But there are certain methods, basic language skills and knowledge that can make a business trip to China more comfortable and productive.
At the Chinese Manufacturing Consultancy, we help establish a relationship between Western and Chinese companies, by helping both parties better understand each other’s requirements. The importance of Guan Xi (relationships) to connect with a Chinese supplier is of fundamental importance and will pay dividends.
Considerations and support There’s a major oversight by Western companies that there are major savings to be had when manufacturing in a low-cost country. We say it’s essential that savings are calculated realistically, and that all costs of running a business in China are included.
The technical, purchasing and sales information must be 100% complete before asking for any support or quotations
38 July/August 2021 | Automation
from the Chinese supplier. Proposed timescales have to be made very clear, and a complete and fi nished design/process must be available and laid out to be easily understood by the Chinese partner. The requirement to audit and review the supplier has not gone away because they are situated in Asia – in fact, it is more important. It is also important that the Western company understands what it will receive, and for the Chinese company what the deliverables are and what is expected of them going forward. There has to be the required internal structure within the Western company to support the manufacturing/purchasing or buying process, so that the Chinese supplier knows who to contact and what is expected of them.
The Chinese Manufacturing Consultancy will smooth out these processes, since we train staff so that your company gains the skills to run a successful business partnership with a Chinese supplier. We have long-term relationships in China, which avoids “cold picking” new partners.
Here’s a list of what we can help with: 1. Local support from our Chinese offi ce based in Feng Gang, near Dongguan, where we have a factory. Dongguan is one of the fastest growing cities in China, strategically located in the middle of the Guangzhou/Shenzhen/Hong Kong economic corridor.
2. Support in booking hotels – we do it cheaper.
3. Language, travelling, cultural, technical and commercial support. 4. We can provide the necessary letters and advice for visa applications. 5. Purchasing work. If you must purchase many components from diff erent locations, CMC can collect and ship to Europe as a single delivery. From our 20 years of experience working with Chinese companies, we off er the support and understanding necessary to establish a successful partnership there.
CONTACT:
Chinese Manufacturing Consultancy
www.chinasupport.co.uk
automationmagazine.co.uk
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