1. Go Global Talk - China
Do’s and Don’ts In Doing Business In China
Andrew Wong
CEO MAD Incubator
2. About Me
• Entrepreneur
• CEO and Founder, MAD Inc
• CEO, MCA Innovation Resource Centre
• President of National Incubator Network
Association (NINA)
• Council member of the Asia Association of
Business Incubator (AABI)
• Council member, Working committee – JTPIN,
MOSTI
3. Facts About China
Population: 1.3 billion
World’s 2nd largest economy after United States of America
Major industries – mining and ore processing, machine
building, armaments, building materials, consumer products,
food processing, transportation equipments and
telecommunications equipments
Major imports – electrical and other machinery, oil and
mineral fuels, optical and medical equipments, metal ores,
plastics, organic chemicals
GDP/GDP per-capital – US$8.789 trillion/US$6,600
Per-capita disposable income of urban residents – RMB
17,175 (2009)
5. Doing Business In China
Challenging market
Market Entry Strategy
3 forms of market entry – import/export, representative office and
locally incorporated entity (wholly owned or JV)
Understand the location and potential market
Understand the governing laws of the country (reference: Chinese
Embassy or MATRADE)
Selling your products and services in China
Highly protective market
Must meet regulatory requirements
Establishing an Office in China
Must be willing to spend around US$50,000 to US$500,000
Bulk of cost is office rental and expatriate package
6. Doing Business In China
Selling techniques
‘Guanxi’
Localised support
Should use local representatives
Promotion
Trade shows
Pricing
Price sensitive
Brand conscious
7. Common Business Etiquette
• Do’s
– Take your own
interpreter
– First impression is
important
– Show some respect
– Make bilingual business
card
– Present your card with
both hands
– Respect the culture on
hierarchy
• Don’ts
– Jump in the conversation
– Cause embarrassment or
loss of composure
– Assume that a nod is a
sign of agreement
– Use direct negative
replies
8. Business Etiquette – Business
Meals
• Do’s
– Lunches and dinners are popular
– Please eat what they serve
– Wait for your Chinese counterpart to initiate
formal greetings
• Don’ts
– Have business talk on breakfast
– Begin eating or drinking before the host
9. Business Etiqutte – Public Behavior
• Do’s
– Addressed with their official title and name
– Shake hands when first meet
• Don’ts
– Attempt any intimate contact such as hugs or
kisses on the cheeks
10. NINA-STIC Market Access
Centre Objectives
1. To encourage small and medium
technology companies to locate at
Shanghai and Kuala Lumpur
2. Promote international market
access
3. Inculcate creativity and innovation
among Malaysian and China
technology companies
4. Promote business collaboration and
partnerships
5. To provide low cost market entry
into respective markets
11. NINA-STIC Market Access Centre Program
1. Business coaching and mentoring
2. Linkages and Relationships
3. Shared Facilities, Services and Human Resources
4. Market Access – Business Matchmaking, Market Intelligence
5. Financial Access – Investors Contact, Government Grants
6. Statutory/Legal Assistance – Company Incorporation, Immigration, Govt
Regulations
7. Relocation Assistance – Housing, Cultural Training, Translators, Visa etc
8. Technology/Technical Collaboration
9. Joint Reciprocal Study Tours – Information Gathering and market exploration
10. Information Briefing To Improve International Export Capabilities – Culture,
Product, Market Intelligence, R&D, Partnerships
11. Creation of Alumni between entrepreneurs from NINA and Shanghai
12. Proposed Programs
Entrepreneur
Xchange Working
Visit
• Market study tours
• Market briefing sessions
(Shanghai/KL)
Market Exploration
Program
• Temporary office (2 weeks
– 1 month)
• Market assistance
• Network and regulatory
assistance
• Information briefing on
operational, culture,
product, market, R&D and
partnership.
Market Access
Center
• Long term program (6
months – 1 year)
• Office facilities
• Shared facilities, services
and human resources
• Coaching and Mentoring
• Statutory/Legal
assistance
• Business support
• Marketing assistance
• Financial access
• Relocation assistance
• Technology and technical
collaboration
13. Program Details
Entrepreneur
Xchange Working
Visit
Market Exploration
Program
Market Access
Centre
• Participating organizations to cover
transportation, food and lodging costs.
• Host country to facilitate and organize
networking/business matching sessions and
logistics for study tours
• Participating organizations to bear cost of
transportation, accommodation
• Host Incubators to provide services free of
charge
• Participating organizations to be located at
Host Incubator between 2 weeks – 1 mth
• Participating organizations to be located at
Host Incubator between 6 months – 1 year
• Incubation services to be rendered at the
lowest cost.
15. Anticipated Outcomes
1. We foresee more
successful collaboration
between Chinese and
Malaysian companies in
respective markets
2. Successful development of
companies in Chinese and
Malaysian/ASEAN markets
in a facilitated
environment
3. Enter China/Malaysia
through existing market
networks
16. Key Questions to Answer
• Identify your market
– Customer segment
– Customer value proposition
– Product that you want to sell
• Know the business environment of the location you want to do business in
• What will be your organization structure?
• Know your partners. Appoint the right agents
• Be thorough with your plan of action
• Know your marketing strategies
• Have adequate capital and be ready for the long haul
• Use soft landing zones to reduce cost of market penetration
17. Andrew TF Wong
Tel: 016 3438802
Email: andwtf@incubator.com.my
Twitter: madincubator
Facebook: andwtf
Facebook: Mad Incubator
