A glimpse of doing business with China

In the last two decades, no country has got as much coverage as the People's Republic of China. Be it the number of search results on Google or books, China has become synonymous with the future of the world in the 21st century. Already, the fourth-largest economy in the world in real dollars, it is the hottest spot for companies around the world seeking new business opportunities; for many global companies, it already is or potentially would be the biggest market outside the US and Europe. China CEO describes some of the major challenges faced by multinational companies while establishing themselves in China during the last two decades and then goes on to prescribe some do's and don'ts for those who have yet to enter China.

The book starts with a general overview of China with emphasis on management and strategy aspects of running a business in that country. It then also talks about the judicial and social aspects of running a business in China. There is an overwhelming use of quotes and anecdotes to illustrate most of the points but sadly, these are at a very broad and general level. Further, bulk of these anecdotes have been apparently sourced to American businesses rather than a more balanced mix comprising American, European and Asian (e.g. Japanese) executives, which could have provided some diversity in the conclusions and recommendations.

The authors seem to have primarily an American college- educated audience in mind. Non-American readers with a background in international business or marketing (and especially many of the successful Indian business executives) will find many solutions and practices described as "obvious" and "generic". It is only some of the later chapters like "Intellectual Property", "Negotiation with the Government" and "Living in China" that may offer something more substantial to the India reader.

To the credit of the authors, the language is much easier than other business texts and most readers can finish the book in two or three sittings. However, content-wise there are many instances of contradictory remarks such as:

"[I]n fact, our interviewees generally agreed that JV partnerships can be extremely valuable to MNCs entering China" (Page 64).

"The general consensus among international managers interviewed is this: if you can avoid forming a JV, do so" (Page 69).

Furthermore, by and large, there is no specific advice or suggestions from the authors for most of the issues described. Instead, they have just included anecdotes of what some companies have done to respond to these situations. In fact, many such questions have been answered with open-ended replies. The book, hence, gives a feeling of an information resource rather than an expert treatise that can enhance knowledge and provide directions for doing business in China. Plus, the information could be more valuable for a lower- or mid-level manager rather than a functioning top-level CEO.

Overall, the book presents a very rosy picture of China without any allusion to some challenges that the country faces even today and which may become more crucial in the coming years. These could include concerns on human rights violations, territorial conflicts, censorship, environmental degradation, demographics, or IPR issues, which a new entrant to China may wish to factor in while planning the entry.

I conclude by stating that China CEO is good quick read for someone utterly new to the world of China but it cannot be used to gain substantial knowledge about any one or more aspects of this remarkable nation. Further, many of the challenges and cultural nuances described by the author may appear like a revelation to an American manager but would seem very obvious to an Indian manager, as stated before. To those interested in getting a deeper insight into China, I would encourage the readers to also consider some other bestsellers on the same topic such as China Shakes the World by James Kynge and The New Silk Road by James Schiro, and then some others focusing on more specific aspects of doing business in that country. The good news is that there are enough good books out there, with many more in the works.

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China CEO
Voices of Experience from 20 International Business Leaders

Juan Antonio Fernandez, Laurie Underwood
John Wiley and Sons (ASIA)
Price: $19.95; Pages: 250