Tell in a ONE sentences about business with China: There are many potential opportunities but also some tricks.

Denis Lee, Operations Director, JitVerify Services

Company Profile:
www.jitverify.com

Who are your clients? The client who import from China, especially from US and EU.
What is your mission? We protect the interests of Western companies by providing a full range of high quality verifications of claims by Chinese companies.

What problem do you resolve? Quality issues, trust, and other communication problems caused by differences in culture.

What kind of problems between Western companies and Chinese manufacturers do you see?

1. Misunderstanding caused by culture. Most western companies are straightforward, but Chinese people seems complicated. So, you need to dig into the deep meaning hidden under their words. This can cause some misunderstandings.
2. Distance problem. Due to the long distance, the buyers can’t oversee the Chinese suppliers and it is difficult for the buyers to know the real condition at the far away suppliers.
3. Communication problem. Due to culture and language problem, they can’t understand each other very well, so they need someone to bridge the relations.
4. Regulation and practice problems. There is a big difference between the east and west in term of business regulations and practice.

How a Western company can find a reliable Chinese supplier?

Visit trade shows is one way. Another is to check on the Internet which is easier but has risks as well. You need to visit the suppliers personally to check their ability. Sometimes you can’t find the potential problems by yourself. If you use an agent who knows local situation very well, the agent can give you a detailed report.

What is necessary for TOP managers of western companies for start-up business with China?

Personally I think they need to find a local assistant to help them. This can help them achieve their goals by low cost. Of course, it is important to use a good assistant.

What are the risks while working with a Chinese manufacturers and with what they are related?

I think the main risk is credibility. It is pretty natural that the Chinese suppliers break the contract. Once they can’t follow up with your requirements, it is very hard to appeal by legal means due to the long distance. So, the key resolution is to figure out the problem in advance and then resolve it before it becomes a big trouble.

Could you tell us a short interesting story from your experience, which shows difference of the Chinese and Western business culture?

A few years ago, I ran a small sourcing company. Initially, there were few responses after I send out a quotation. I don’t know why. Then I asked one client who told me that my price was high. I said, you can bargain with me. In China, the seller must prepare a margin for buyer’s bargain. For example, if one seller wants sell one item at $10, he must quote $12, because every Chinese buyer will bargain. The buyer will be uncomfortable if he buys the item at the price the seller quotes. So, there are many differences between east and west.

What would you like to tell to our audience?

To do business with China is not so difficult. Most Chinese people are friendly and kind, but you need know some Chinese culture and regulations. As a minimum, you need at least one person on your team who is experienced with China.

What are you think about it? Please  leave a response in comment….