During the Flanders Investment and Trade Export Fair, the Flanders-China Chamber of Commerce, with the support of Flanders Investment and Trade, organized a seminar focused on ‘Win in China: Doing business with a changing China’.This seminar took place on June 22, 2022.
Mrs. Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce, welcomed the participants.
Mr. Bo Ji, Chief Representative for Europe and Assistant Dean of China’s top business school, Cheung Kong Graduate School of Business, delivered the keynote speech. Professor Ji shared his perspective on how to be successful on the Chinese market. He discussed the opportunities and issues facing companies as they look to expand their businesses into China. Focusing on China as the land of opportunity, Professor Ji also shed light on this diverse and complex market and how business leaders can change their mindset to engage successfully with China.
A Q&A session concluded the seminar.
What are the top 3 tips for doing business in China? Mr Bo Ji: You need to understand Chinese culture and know how the Chinese business community behaves. You also need to understand the Chinese consumers and to know what kind of business model works. Not every western model is going to work in China. It is enormously important to know what Chinese consumers are looking for. Thirdly, it's important to be flexible and adapt to the Chinese speed. Work ethics are also important. You almost need to become like a Chinese: work hard and getting things happen.
What are the top three reasons for failure in China? Mr Bo Ji: 1. Just dumping your product into China. Walmart did that with its low cost approach and it failed. 2. Not abiding by government rules. It's either the government's way or the highway – go home. You need to adapt to the environment in terms of regulations. A confrontational approach towards the government could lead to failure. 3. To easily give up. You need to learn a lot in China. Making mistakes in China is normal, but you need to correct them and move on. Doing business in China requires more skills. You could fail if you easily give up.
How to build relationships with Chinese partners if you cannot meet them face-to-face? Mr. Bo Ji: Meeting by video is the way to go right now. Many Chinese businesspeople desperately want to come to Europe. Government policy is now to ease the Covid restrictions. The economy suffered a lot from the lockdowns and the lack of exchanges. You can talk to your Chinese partners via Tencent meeting and build up the relationship. Also, do not only talk about work. The Chinese mix work and personal life.
What are the three main cultural differences when businesses are going back to China? Mr Bo Ji: Certain businesses are not meant for the Chinese market, such as competing for price when your costs are high. Chinese culture is very much price sensitive but Chinese look up to brands and quality. You can sell expensive bags in China without any problem, because people pay for brand, quality and status. For cheaper products there are plenty of competitors in China. Chinese also love negotiations to get a better deal. If you deal with state-owned enterprises, some business is heavily regulated and you may not have any advantage, such as in the oil, banking and telecom sectors. On the other hand, China needs a lot of medical equipment and technology, such as in AI, batteries, aerospace and car manufacturing.
