Confusion said, “How happy we are, to meet friends from afar!”

However, I had a lot of experience that foreign companies cannot find the right way to enter or develop China market. The main problem I believe they find the wrong person.

Who will be the right person? She/he must be honest, focus on business. Actually foreigner likes to find the person who speaks foreign language frequently in political way. You should know you are trying to find a real businessman, not a politician or linguist. For sure the language will help the communication. However, you will find out the real businessman will help you understand the market much faster. It is not because of language, it is because of the working experience. The difference is, linguist knows the language but don’t know what and how to say.

To find a real businessman, you will have to know something about China market. If you judge a candidate with foreign experience, knowing nothing about China, you might find him outside mainland. We see a lot of examples. However, it is not good enough, even it is not good.

What’s the basic knowledge of China car market?

1.  Whatever, if you think Chinese know nothing, you are wrong. For example, it is funny in my past, my foreign colleagues thought Chinese cannot design vehicles.

2. If you think Chinese can do everything, you are wrong again. Still take the example of car design, after I showed Chinese suppliers’ capabilities to my foreign colleagues, they lose confidence. Some of them left China market. They are fooled by such words, once Chinese can do, you will never have chance to do. Believe me, Chinese can learn fast, but still need time and opportunities. Also since the market is so big and so diverse, you will always have chances to find your tailored opportunities.

3. Be aware of to enter mature industry for example lamp and ECU. For example Koito, Valeo, Hella and so on and so forth, they had fully developed their business in China market. However, if you think you will never have chances to succeed in such field, you might be wrong again. You can set up JV with China local companies. Sooner or later, China local suppliers will take over foreign suppliers business in China. Since you come late, you still want to have some breakthrough, you can go to China self brand car makers directly to talk about JV issues. You might find new continent. Once the JV sets up, the business will come from your current traditional competitors. However, you must sacrifice something.

4.If you are in a new industry like some electronics ESP, EPB, power train and so on, please drive at full speed. Though you are second or third brand in your market, you might have chances to be biggest one in China. Your biggest competitors might be conservative and swellheaded. Maybe they chose the wrong persons. Furthermore, they are not always luck enough to find the future champion strategic allies even they have right people.

I always told my friends, as Chinese carmakers, they should think about to help foreign good suppliers to survive in China market. It is critical to both. Chinese car wants to win competitors home and aboard, we will have to make full use of resource all over the world. Owing to historic and realistic reasons, international carmakers cannot make full use of resource all over the world. They have to give up something useful and strategic. For Chinese self brand, it will be our opportunity. The competitors will feel happy to see so many good, maybe be middle or small companies die out. For example, VW can stop ItalDesign to support Chinese self brand, but they will never have chances to stop all the European stylist and engineers to find business in China unless Chinese self brand closes the door to cooperate with foreign suppliers. The reason is very simple, though VW is strong enough, it is still not strong enough to control all the resource all over the world.

It is time for foreign suppliers and Chinese carmakers to think about this issue. It is not only the question for foreign suppliers how to develop business in China, but also the question how China self brand to make full use of resource all over the world.

To Foreign friends, I would like to say, stick to it! Sooner or later, you will find, it is right to come to China.

Ali 2010-11-3

PS: It is pity to find out good companies left China owing to first entry failure. Also I need time to pratice my English though I am working for an American company.