#01 Know your customer
China's consumer market varies hugely according to geography and demography.
#02 Make sure your product fits your market
Keep it real. China-based managers need to manage the often overblown expectations of head office early and effectively.
#03 Don't rely on regulations
Despite dozens of new laws aimed at creating a robust legal framework based on international standards, enforcement remains patchy. Prevention is easier than cure.
#04 There is no magic to guanxi
It makes perfect sense to build guanxi, or corporate networks of contacts, as a means of doing business in a society where relationships are so highly valued, but remember that guanxi need maintenance and are a two-way street.
#05 Scale up, not down
The history of foreign investment in China is littered with examples of multinational companies that entered the mainland market with grandiose plans, only to be forced to scale back or withdraw a few short years later. Start small in a small number of cities in one province or region, and get to know the local consumer market before expanding.
#06 Know your hires
Background screen all staff, no matter how junior. Alittle due diligence can go a long way.
#07 Share the love
Motivate and retain talented local staff with training and other incentives beyond just salaries.
#08 Dust off those codes of conduct
Keep your codes of conduct up to date and use training and workshops to make sure employees fully understand them.
#09 Show no mercy
Demonstrate zero tolerance towards fraud and corruption by acting swiftly and decisively to remove fraudsters from your organisation.
#10 If at first you don't succeed, keep trying
Most successful companies have succeeded in China only through perseverance and learning from their mistakes.
Chris Torrens is the author of The Economist Guide to Doing Business in China (Profile Books, £20)
BUY IT HERE: Doing Business in China (Economist)
BA flies twice daily to Hong Kong, daily to Beijing and five times a week to Shanghai. Visit ba.com
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