In this recent article published in the Jongo News, Steve Dickinson writes about how American or European companies must be patient and not rush the slow process of establishing themselves in the China market. Trying to rush the process will only lead to disaster, according to Dickinson.
When setting up a new business in China, speed kills. Things take longer to accomplish in China, particularly at the start up phase. U.S. companies are notoriously impatient and will often attempt to speed up the process, which generally leads to disaster. For success in China, you need to expect that everything you plan to do will take longer than expected. If meetings in the U.S. or Europe require three days, plan on three weeks of meetings in China. Any attempt to rush the process will lead to disaster. While this message has generally been accepted by foreign investors in here, I am now seeing a related issue that is very dangerous for foreign investors in China.
The process can take a particularly long time for newcomers to China who are unwilling to provide all of the detailed documentation required by the Chinese authorities company approval. In many cases, as the approval process drags on for many months, the foreign investor grows increasingly impatient as it watches business opportunities pass by while waiting for government approvals. This frustration is compounded by the desire of the Chinese JV partners, employees and suppliers to begin earning income as soon as possible.
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