What is the importance of taking a long-term view if you want to do business in China?
You must be patient. China is, after all, a 5000-years-old civilization and they do not measure time in the same way we do in the West. We want instant progress, instant change, instant everything. If you expect that in China, don't do business here because you simply won't succeed.
Most CEO's, when they think about doing business in China, make one or two trips and then expect everyone else to carry on for them. In China, like other parts of Asia, personal relationships are terribly important. If it becomes apparent that the relationship is being built just to benefit the foreigner, you might as well stay home.
Business relationships must be mutually beneficial - an attitude that is only recently gaining acceptance in the West. Therefore, where many foreign investors have found success in China has been in their ability to shown their commitment, by for example, recruiting bright and talented local people and developing them into managers.
Too often, global companies change their China management or board of directors dealing with China after a relatively short period of time. This is a tremendous lose of experience that is essential to doing business in this unique market environment.
What investors in China have to realize is, if they have not already done so, China is a big country. It covers a huge part of the globe and has 1.3 billion people. When viewing China, it should not be merely viewed as market, but as a country whose people have certain beliefs, even though they may be slightly different to your own, and therefore do not necessarily think the in the same way as you do. China is making dramatic progress, with change in almost every facet of human life resulting in the lifestyle of its people probably never being better at any time in their 5000 - year history. Having said that, China still has a long way to go but the change will come. You need to take the long-term view.
You can't rush China. You have to take it step by step. That is the secret of success.
