CIL China’s business podcast initiative in cooperation with Benelux Chamber of Commerce PRD has been releasing its first China business video podcast. Within this series, we (CIL China) and China entrepreneurs (members of the Benelux Chamber of Commerce) will talk about their business experiences in China.

Baudouin Snel

This episode we started with Baudouin Snel. Baudouin is a serial entrepreneur in China for almost 25 years. These years of experience have gained Baudouin essential knowledge about China and doing business in this culture.

Import to China

When importing to China, especially beverages, you will need to comply with local regulations. You will face difficulties and differences compared to regulations in Europe. Customs work and think in different ways which make it essential to know what you need to comply when importing to China. In the podcast, the following import-subjects are discussed:

– Labelling of products
– Production date
– Expiry date
– Sanitary certificates

Guanxi

Discussing how important “guanxi” is to doing business with China. Guanxi, in English, referred to as “relationship”, plays a main role within the Chinese business culture. But what is a relationship? How do you know if you have a “useful” relationship or a “strong” relationship? The main conclusion is that having knowledge about “guanxi” is key when doing business in China. A relationship mentioned being stronger than an agreement or contract. Where relationships also have risks.

The middle line

When companies come to China, they often lose their common sense. They directly invest a large number of funds in their China projects or only want to go as a tourist and don’t want to start anything related to business in China. The middle group of entrepreneurs who takes the time to learn about the market are rarely found. Companies often take more time and patience to develop nearby markets such as Germany, France or Eastern-Europe. While they don’t take the same amount of time and patience to learn about the Chinese market. While business in China has the highest potential. Therefore, when investing too much while you don’t know the market is risky and irresponsible.

Start with a small capital

When doing business in China or setting up projects in China, the advice is to start with a little capital. To gain knowledge, practical experience and make mistakes to gain sufficient competencies to survive in the Chinese business environment. A budget capital from 5.000, 10.000 or maybe 20.000 EUROS is not considered as a large amount. Advised is to try out your projects before largely invest.