How to Use a Consultant for Starting a Business in China

China adopted a number of market reforms in the late 1970s, and since that time commercial relationships between the United States and China have grown dramatically. There are many opportunities for American businesses in China, but Chinese law requires that business work with a liaison, or consultant, rather than signing contracts directly. Follow these steps to use the right consultant for starting your business in China.

Difficulty: Challenging

Instructions

1. Pay attention to guanxi (pronounced GWAN-shee), which means personal connections. This is extremely important when doing business in China because the Chinese rely on personal connections so strongly. Choose a consultant who you can connect with personally and who has these types of relationships with people in China.

2. Do your homework. It is most important that the consultant you choose is reliable and has the right motivation. In other words, you need someone who will operate in your best interest as well as his own. You can ask for references and check them out, but try to get information about a potential consultant from other sources as well.

3. Go to trade shows to locate sales agents or local distributors that can represent your business interests in China. The Department of Commerce offers a Gold Key Service Program that helps companies that are new to business in China find consultants and possible business relationships. They also have a list of trade shows where you can display your products in the US Pavilion.

Tips & Warnings

• Although there has been some progress in this area, China is still a challenging environment for protecting your intellectual property. Export.gov features an article about protecting your products or ideas on their website.

Resources

• Get basic market research on China at this government site.