In the past 20 years, China has transformed itself from an impoverished country into a world superpower, and the trend continues. China possesses large markets and surplus capital; however, for startups in NM to take advantage of these opportunities, a thorough understanding of the Chinese business culture and working with trusting Chinese firms and entrepreneurs are essential.
There seems to be a love and fear relationship between US startups and China: love the market and resources, and fear of the unknown. Should a startup work with China? The answer is Yes! The benefit of a startup working with China is much greater than the perceived risk. If you have an innovation based startup that you believe has global market potential, you should not lose sight of China’s startup resources (capitals and manpower), which can expedite your time to market, and access to the large markets that will help your business development in US.
There is no one way of working with China: Joint Venture, Licensing, Subsidiary, Sales and Distribution, Investment, etc… However, regardless the shape and form, you need to:
1. Assess your product’s global market
2. Make China a priority of your startup
3. Understand you can not work alone in China
4. Strategize & clarify your unique technology
5. Create an IP protection strategy
6. Start your China venture through people
7. Choose to work with people you trust
8. Build relationship at different levels
9. Negotiate/interact with cultural differences in mind
To explore this further, contact Yun Li, Ph. D., Founder of Yunexus Consulting, "the Conduit for Your China Venture success"