Introduction to International Business in China

Abstract

From the beginning of the 21st century the gravitational centre of the world’s economy has shifted to East Asia (De Mente, 1994); China is now considered a country whose influence on the international business environment has become increasingly important. Recessions, the internationalization of business, the development of online retailers, political turmoil and customers’ demands are forcing corporations to diversify their offerings and find ways to become more competitive in order to gain, or even maintain, their market share. Many Western countries are now looking to China as a market for exported products, a source for imports or as a location where, thanks to the low price of labour, the construction of factory sites is both time and cost effective. In many industries moving operations to ‘the Middle Kingdom’, finding suppliers or workers in China and focussing on that country as a market for Western products has proved to be a winning strategy. However, the business context in China changes quickly and misunderstanding about ‘the Chinese way’ of doing business can cause costly misunderstandings and even failure.

He who asks a question is a fool for five minutes; he who doesn’t remains a fool forever.

Chinese proverb