This quote attributed to Albert Einstein, gives us a starting point to this article.
When the suspension of the Barcelona Mobile World Congress was confirmed in February 2020, many were surprised and some did not understand. It seemed that the coronavirus was somewhat distant, concentrated in one part of the world. It was about their problem and they would take care of solving it, as they had done with other previous epidemics. A few alerted to globalization and China’s influence on the new world order. Later came new terms that are now familiar, but then they seemed as far away as China itself. COVID-19, pandemic, health alert, confinement and finally, world crisis. Now in the “new reality” we all take for granted that these pandemics will be cyclical and will affect us all in the future.
In Chinese, the word ‘crisis’ is made up of two characters: danger and opportunity. In the business world it is used as an opportunity to innovate and use technology to deal with unforeseen situations.
Some business experts predict that the recovery from the crisis will be in V with a significant increase in GDP in the countries of the European Union in the first half of 2021 and the return to the numbers from before the pandemic, in the second half of the year. coming. Other experts do not see it so clearly and predict a slow recovery that will last until 2024..
What all experts and businessmen agree on is in looking at China.
The Chinese market is slowly returning to normal, partially driven by the significant increase in the manufacture of sanitary materials that they are supplying to the rest of the world. Chinese consumers are also gradually regaining their confidence as the COVID-19 crisis subsides, suggesting that most will resume the highest levels of spending on some categories of products and services in the coming months. All this has made China attractive to foreign companies again after the mistrust the country generated at the beginning of the pandemic.
One fact that indicates this interest is that during the quarantine period, Chinese consumers continued purchasing online. This is a new reality that was already present in Asian society and that now with the pandemic has increased. Both national and international companies want to take advantage of this effect..
The conclusion reached by international trade experts is that this new normal that will arrive in the coming months is a good time to look at China again, as a business opportunity.
Chinese entrepreneurs always put money ahead
As is quite logical and happens in all countries of the world, but with the difference that they do it their way and with their rules. They perfectly know the potential of their internal market and the need of the foreign company that wants to enter that market. In most cases where a negotiation is started with a Chinese company (Import, e-commerce, manufacturing, introduction to the Chinese market), they have the position of strength, they know it and they play with it, to get the maximum benefit.
The examples of governments and companies around the world that have had problems with medical equipment imported from China are innumerable and it has affected all areas of the world that have tried to negotiate with the Asian country in a critical situation. To all of us who have contacts with Chinese companies, they have offered us medical supplies at a good price and promises of safe and fast shipping.
China, in itself, is a difficult market to manage, even more so when unscrupulous opportunists enter the scene in search of a good commission in the absence of control due to urgency
Our experience, your ally
For those of us who have been negotiating with Chinese companies for years, we know very well that closing agreements, purchases or exports with them is much more complicated than overcoming the language barrier. There is too great a cultural distance that requires a lot of previous research work, knowledge of the culture and above all a relationship of trust (the Guanxi ) based on time and relationships. The latter requires numerous trips, factory production monitoring, documentation supervision, long meetings before starting business and being successful. To get to this point, first you have to go through the business phase that seems closed, but they are canceled at the last minute for some reason that we do not know, long meetings that do not amount to anything and finally, frustration, patience and learning. In two words: Knowledge and experience are required.