Hoping to find the right partner through a checklist with criteria drawn up yourself beforehand is by far the easiest part of your efforts to explore the Chinese market in order to develop business activities. This refers to plans for making investments in a certain project and setting up joint ventures.
Western methods for partner selection and at a later stage partner screening do not automatically lead to success. Sometimes these methods even stand in the way of success.
Partner criteria that have to be met only form a small part of the job that has to be done before any business activity is about to start and it is sometimes necessary to put them aside in the first instance.
As for partner selection, it is very important to find out which are the objectives of both parties and whether they do coincide. First begin with picking out a certain region and do not try to scour the whole Chinese market in order to find a partner. Prior to engaging into business activities with a certain partner, you must have a clear notion about the market potential aimed at, what will be the outlet area? The interests of your partner need to be identified in order to anticipate possible conflicts of interest. At the time of personal contact there should be a certain mutual understanding, and during discussions the exchange of thoughts should be as far as possible at an optimum, otherwise you never can tell whether you are dealing with the right partner. Often the exchange of thoughts is far from sufficient. Mutual trust needs time to grow and usually progress is slow. Loyalty does not arrive automatically and it is indispensable for later success. Consultations with local authorities may help in answering the question whether you are having discussions with the right partner.
The screening of potential partners in China is certainly no sinecure. Gathering information from independent sources is most troublesome to anyone without exception. One is rarely willing to give much relevant information at the beginning. The material that is handed out needs to be verified and interpreted in the right way, which is quite a discipline in itself! An assessment is only possible on the basis of consistent information acquired from different sources.
Finding the right partner therefore requires a lot more effort, nevertheless there are abundant chances and success stories with regard to the Chinese market.
Yujie Services comes each month with a premise that focuses upon a certain aspect of the Chinese business culture where things may go wrong.
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