Why there’re more and more companies dedicated to explore the foreign market? There’re many reasons, such as China has become a member of WTO, a big potential market and so on. I don’t intended to discuss these big issues here, but just analyze the business condition in Mainland China, and then I think you’ll get some hints.
Firstly, let’s took a glance at this fact: “According the analyse data, there’s at least two companies went bankrupt because of complexed triangle finance relation.” What’s a triangle finance relation? Let’s explain it in a simple samples: Company A is a components manufacturer who make the parts to Company B. B make goods for company C, D purchase the goods from C and sell them via supermarket E.
When B buy components from A, he didn’t pay by check immdiately, generally is a 30 or 45, even 60 or 90 days monthly finance settlement. He promise to pay 30 or 45 days later, so it’s similar to 45 days D/A. The same things happened when C purchase from B, D from C, E from D. Each process is complexed crossed, just like a lantern ring. Frankly, each payment promise in depened upon the previous company. If everything is going goods, then it’ll be a happy ending for all. But how about the true?
In fact, the market economy is not so matural as the western. Credit standing is a strangle thing in China. So maybe then factory A want B cash the chek in matural time, the B will be delayed or even rejected, and has lot of plea. So do the others. And then the whole lantern ring is destoried. The complexed triangle collapse. Then company A or C, or D have to declare bankrupt to protect his own interest.
I think you’ll know the dangerous to do business with companies in Mainland. Althought seldom companeies existed, you can imagine what things will be happened till it done. Am I right?
Secondly, Various people relationship
Maybe we can call it “Chinese character”. You don’t know how complex it’ll be. It’s a mess. But I don’t want to explore it more, just touch the surface. To know the deepth of a river, you just need to step in. Am I right?
Thirdly, different strange requests
In fact, it’s also the Chinese character. Do you know why the Google can’t get big success in Mainland China as he get otherwhere? As someone joked:”To do business in China, you have to know the Chinese Character. It’s unique. The market will give a lesson to anyone ignore it.
Okay, you’ve know these things. Maybe you become a scared to do business in China. But don’t worry, there’s one important thing I skip over is what I talk it’s business between Chinese merchant. When foreign involved in, things will be changed. Everything will be smoothly. Why? It’s a Chinese Character.
Maybe what I said it’s in a extreme way, it’s not a typical market phenomenon, and the fact is more better than what I saw and said. But we can’t ignored it, yeah? Days after days, the business condition become better and better, then it’s the time to forget my words, treat it as a joking. ^_^