Business risk in China is well documented, and foreign companies often leave the country between their dick. In saying this, under the growing economic conditions, the temptation to have a business relationship with the Chinese is strong. One of the factors that determines the success of a business relationship, risk management here is some of the ideas that it is grounded for.
Complete and thorough risk analysis
It's amazing how many companies do not make a small plan before it gets in trouble. Risk analysis is difficult in China, but it is not impossible, it has to rely more on representatives of the local media and the company (and the local government) to understand the market position of prospective partners. Your industrial organization and / or your chambers of commerce can help you find more information or take part in qualified counseling.
Before you contact, determine what risk you are carrying and if your business exceeds this threshold – walk around. If you have other risk management policies in other countries, you should apply exactly the same high standards as China and not reduce them because they think of higher profits.
Developing a Problem Prevention Culture
By filling up a lot of beautiful balance sheet data at the start of a project, spend some time planning issues around things.
Creating a complete contingency plan for each case, including practical solutions that can be solved. Make sure you set milestones for each section of the project and an exit strategy beyond each location of the plan if you do not intend to use it.
Never forget that China's business is built around personal relationships and Chinese suppliers may mislead you or even lie to you completely if you have another personal relationship (from outside) that the truth would have violated.
Many Chinese companies are also not a constrained entity, as they are in the west and local political issues can have a significant impact on business relationships with foreign organizations. It may be very difficult to gain visibility and access to information, especially if there is a "loss of limb" in the image.
Ideally, you need to build relationships and relationships between local governments and central governments who might be able to intervene in your name when things go to failure.
The complexity of business culture in China means you have to spend more time and effort before understanding your working methods before you partner and risk management strategy is a key element of successful relationships management.
Source by sbobet