China Business Seminar

Today I spent the day with my dad in Chicago at the KattenMuchin law firm. Several highly respected lawyers and investors from companies such as The Jordan Company, Wells Fargo, Lincoln International, and Navistar International held a seminar about investing in China. Sadly, the seminar was not completely focused on the Chinese economy and its future, but more about doing business with the Chinese. However, it was still interesting to listen to. They all mainly spoke about how its an extremely difficult process to invest in China because their culture is very different from ours. Besides in the bigger cities like Beijing and Shanghai, the Chinese don't yet understand the western business values. This complicates the process if the investor doesn't understand the Chinese values and way of business. Business is extremely personal in China and relationships are key to being a successful international businessman. Because China has a communist government, there are three levels you would have to deal with in order to get involved. The local level, the provincial level, as well as the national level. For example, in Shanghai, in order for Christmas lights to be put on the trees, there are 27 permits you must have. Furthermore, almost every process done in China will be much slower because of all the regulations and the different business style.
Another interesting point that was mentioned is that the Manufacturing Investors are becoming less and less. The people willing to be involved with China are now in the service industries as well. The market is much more open and is rapidly changing to fit western standards. China has come a long way over the past few decades and they will continue to evolve as time passes by.