China, without a doubt is the hottest market in the world, be it GDP growth, the biggest shoe exporter, biggest DVD exporter, biggest consumer market, mobile phone subscriber, textile exporter, biggest cigarette market, to name a few. It is clearly the most dynamic market on the face of the planet today.

    China has a very segregated market, and even if you have a global product, it does not mean that if you get it in Shanghai, you will also have it in Beijing and elsewhere. Contrary to popular belief, there is no such thing as a one China market. China’s “Geo-Economy” is not evenly developed shaped by a mix of maturing, developing and emerging markets. In addition, there are 23 provinces, 5 autonomous regions, 4 municipalities directly under the central government, 2 special administrative regions, 7 major dialects, more than 80 spoken languages overshadowed by a big rural and urban income divide.

    The way Chinese conduct business is still predominantly relationship based
wherein relationships are at the heart of almost all business transactions.
Popularly known as “Guanxi”, which denotes a “relationship” based practiced
form of respect and obligation that adheres to Confucian Hierarchical Values
system where favors are given and received only when there is mutual benefit
involved in accordance to how people conduct themselves.

    Presently, “Guanxi” is not enough. It is equally important for the foreign
businessman to conduct due diligence on the prospective relationship, particularly
as to who can help them get things done effectively. Companies worldwide
who want to source from China will definitely require a strategic partner.
Such a partner should know the ins and outs of China like the back of their
hand. One should count on a partner who is from the local area and is
knowledgeable with the customs and how business is transacted. With
provinces and areas rich in diversity, a holistic approach to understanding
the trade system is paramount to gaining a foothold in China