Why there’re more and more companies dedicated to explore the foreign market? There’re many reasons, such as China has become a member of WTO, a big potential market and so on. I don’t intended to discuss these big issues here, but just analyze the business condition in Mainland China, and then I think you’ll get some hints.
Firstly, let’s took a glance at this fact: “According the analyse data, there’s at least two companies went bankrupt because of complexed triangle finance relation.” What’s a triangle finance relation? Let’s explain it in a simple samples: Company A is a components manufacturer who make the parts to Company B. B make goods for company C, D purchase the goods from C and sell them via supermarket E.
When B buy components from A, he didn’t pay by check immdiately, generally is a 30 or 45, even 60 or 90 days monthly finance settlement. He promise to pay 30 or 45 days later, so it’s similar to 45 days D/A. The same things happened when C purchase from B, D from C, E from D. Each process is complexed crossed, just like a lantern ring. Frankly, each payment promise in depened upon the previous company. If everything is going goods, then it’ll be a happy ending for all. But how about the true?
In fact, the market economy is not so matural as the western. Credit standing is a strangle thing in China. So maybe then factory A want B cash the chek in matural time, the B will be delayed or even rejected, and has lot of plea. So do the others. And then the whole lantern ring is destoried. The complexed triangle collapse. Then company A or C, or D have to declare bankrupt to protect his own interest.
I think you’ll know the dangerous to do business with companies in Mainland. Althought seldom companeies existed, you can imagine what things will be happened till it done. Am I right?
Secondly, Various people relationship
Maybe we can call it “Chinese character”. You don’t know how complex it’ll be. It’s a mess. But I don’t want to explore it more, just touch the surface. To know the deepth of a river, you just need to step in. Am I right?
Thirdly, different strange requests
In fact, it’s also the Chinese character. Do you know why the Google can’t get big success in Mainland China as he get otherwhere? As someone joked:”To do business in China, you have to know the Chinese Character. It’s unique. The market will give a lesson to anyone ignore it.
Okay, you’ve know these things. Maybe you become a scared to do business in China. But don’t worry, there’s one important thing I skip over is what I talk it’s business between Chinese merchant. When foreign involved in, things will be changed. Everything will be smoothly. Why? It’s a Chinese Character.
Maybe what I said it’s in a extreme way, it’s not a typical market phenomenon, and the fact is more better than what I saw and said. But we can’t ignored it, yeah? Days after days, the business condition become better and better, then it’s the time to forget my words, treat it as a joking. ^_^
you should enlighten us ignorant Americans by teaching us about the Chinese character. I’d be interested to learn about that, as would many others i’m sure, especially if what you say is true.
Dave,
Maybe what I said is in a extrem way, but it’s. We hope it can become more better.
It is true,there are something beyond business itself,especially in the old but young China.
Anyway,with the opening-up and reform drive,China is now poised to one importing leading ways to tackle business.
What need to change?
Perhaps just the destination there.
Maybe what we need is the patience and time, just waiting.