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DEL.ICIO.USTies to China growing but still challenging
The Atlanta Journal-Constitution
Georgia companies are taking notice of the opportunities in China fueled by the upcoming Beijing Olympics and the growing Chinese market.
A panel of local leaders Tuesday discussed those ties, but offered caution of doing business in the country with the largest population in the world.
Sam Williams, formerly with the Portman Cos. and now president of the Metro Atlanta Chamber of Commerce, remembered when the architect/developer entered the Chinese market in the 1980s with a major project in Shanghai.
“There was no treaty or legal protocols between our two countries,” Williams said during a panel discussion at the Commerce Club on the Georgia-China connection. “You couldn’t file a legal mortgage in China.”
Mason Cargill, a partner with Jones Day, actually helped represent the Portman interests in China in the 1980s, and he has continued his work in international ever since.
“It’s much easier for an American company to do business in China today than it was 10, 15, 20 years ago,: Cargill said, adding that now China has been producing lots of lawyers. But Cargill cautioned: “For small companies, China is a difficult place to do business.” Ken Stewart, commissioner of the Georgia Department of Economic Development, said the state now has a trade office in Beijing, and that Georgia exports to China increased 47 percent between 2006 and 2007.
Other ties: Delta now has the right to fly directly to Shanghai. The merger with Northwest will provide other connections to China. Leaders are trying to get the Chinese government to open a consulate in Atlanta. Several Chinese companies have announced investments in Georgia. And Georgia’s ports now have 23 all-sea routes from Asia.
Gary Black, president of the Georgia Agribusiness Council, said the state’s biggest industry (agriculture) already has been exploring business ties with China. “We have some quality opportunities of what we can produce here in Georgia,” Black said.
Comments
By bernard
June 11, 2008 10:33 AM | Link to this
i want to make business with you.contact5 me
By I'll bite
June 11, 2008 2:34 PM | Link to this
Okay bernard, where do I send the money?
By James Chan
July 30, 2008 2:27 PM | Link to this
Dear Ms. Saporta:
I read your June 11, 2008 article on China. For the past 25 years, I’ve helped more than 100 U.S. companies sell American-made goods and articles to China. I’d like to share my press release with you on successful selling skills.
FOR IMMEDIATE RELEASE Contact: James Chan Tel: (215) 735-7670
Selling to China is an uphill battle, but you can succeed
Consultant James Chan offers seven secrets
China’s $3.3 trillion economy has been built largely on exports to the rest of the world. Those who have tried to export American goods and services to China face heavy obstacles. James Chan, president of Asia Marketing and Management, has been helping companies overcome these hurdles for more than 25 years. With $1.8 trillion in foreign currency reserves, China can now afford the best, Chan says. Its market offers real opportunities for American companies who want to export and expand.
Chan, who has helped more than 100 companies in the China market, says that companies who succeed know these seven secrets:
Your agent is your first “customer.” Finding a China sales agent is an important first step, but it is only the beginning. You need to convince your agent that there is money to be made selling your products. Unless your agent is convinced that your products are a stepping stone to a better life and more opportunities, he or she will not be motivated to sell for you.
Your ideal agent must be an expert salesman, not just an expert. The most common pitfall among U.S. companies in selling to the Chinese is to hire a technical expert who knows their products. The ideal salesman in China should be an expert “operator.” He or she may not have to a technical expert.
Let the Chinese do the selling. Your role is to recruit, train, and support your salespeople in China. A good Western manager knows when to go to China and when to let your Chinese sales people take the lead.
Don’t compete on price. When people in China say that “Your price is too high,” they are either trying to negotiate with you or they are the wrong targets. Price is only one of several factors in your success in China, as it is in the U.S. American companies are rarely the low cost vendors, you have to be clear and direct about how you are better.
Learn to guard your secrets and train your staff. Your customers in China may also be your competitors. It is not enough that you hire lawyers and use contracts to protect yourself. You must guard your own trade secrets and make sure that your employees are keenly aware of piracy.
Emotional intelligence is what works in China, not just intelligence. The Chinese feel proud when they can successfully “reverse engineer” your products so that they don’t have to “depend” on you. Learn to make them feel good buying from you—as opposed to feeling “defeated” that they’ve “failed” to copy you.
Respect inspires loyalty, and, in the long run, sales. If you make your own agents and customers feel respected, they will give you critical market information and orders. But if they don’t perceive that you respect them, they shut you off from the market.
Dr. James Chan is the first person to create and lead a three-day course titled “Business Skills for the China Market” for the American Management Association. To view his professional background in detail, go to: www.AsiaMarketingManagement.com.
If you need a resource person with hands-on experience on selling American goods and services in China, contact James Chan at JamesChan@AsiaMarketingManagement.com or call him at (215) 735-7670.
James Chan, Ph.D., President Asia Marketing and Management 2014 Naudain Street Philadelphia, PA 19146-1317 Tel: (215) 735-7670 Fax: (215) 735-9661 E-mail: JamesChan@AsiaMarketingManagement.com Website: http://www.AsiaMarketingManagement.com