Doing Business in China: Success and Failure on a Cutting Edge

Abstract

Western managers are increasingly aware of the different ways of doing business in China. Some entrepreneurs are extremely successful even without deep knowledge of Chinese society. They just do it their way. But they are the exception. Most SMEs and MNEs have their difficulties, and they do not want to admit it. It is the Western way of losing face, for example, appointing Chinese as leader of your China practice instead of an expat is common in multinational companies. But this does not give you the guarantees that from now on, the golden mountains will appear. From the view of the headquarters, still lack of knowledge exists about the right selection, how to lead your Chinese counterpart, how to change strategies according to headquarter guidelines, and how to deal with the growing power of the Chinese branch.