This presents unique challenges and opportunities for businesses. Based on a research project I conducted on Australian businesses engaging with China, these challenges could be turned into success factors if handled properly.

Key challenges and success factors

Firstly, there is no one single model that is necessarily more effective than any other. A challenge for Australian businesses contemplating expanding into China is to make sure that they examine the wide range of options and success factors. They must attend to the critical issues that seem to be decisive to business success – mastering the art of relationships and cultural differences; defining and executing a focused and distinctive business strategy with skill and agility; and being proficient in the operations and management methods needed to secure a return from the substantial and growing demand and opportunities presented by China.

A second theme has been the need to keep up with the accelerating pace of change in China. Knowledge of China quickly goes out of date. Therefore there is a challenge for Australian companies to make sure they keep up to date with the changes. They cannot take old knowledge and experience for granted.

A third challenge is the need to recognize the size and diversity of China. There is not one single homogenous “Chinese” market. China is more like the European Union rather than the United States in terms of its diversity.

A fourth challenge for Australian businesses is to hold in balance China’s situation as both a country of great economic promise and yet not be mesmerized and overwhelmed by the prospect of 1.3 billion potential customers. The fundamentals of doing business still apply.

A fifth challenge is to make the most of the new pattern of global business engagement presented by the emerging small global enterprise. Such enterprises are small, lean, technologically adept and flexible, operating globally irrespective of their home location and capable of adapting their business models to service new markets and opportunities wherever they arise.

Emerging small global enterprises

Working on this study, we identified some small and nimble Australian businesses who have been able to flourish in China. They fly beneath the radar of extensive Australian media coverage. Australia does not have the big brand names and large transnational corporations, but these small Australian enterprises are doing well internationally, and have the potential to become ‘small global enterprises’ or as some have called them, ‘micro-multinationals’.

While opening up the market to small and medium enterprises has been made possible by China’s new ethos of “free market communism”, a greater influence at the individual firm level is enhanced communications, and specifically the internet, allowing access to information, contacts and know-how that has previously not been available. With this new level of information, SMEs are empowered to engage in the market, and more importantly to control, to a certain extent, their destiny there.

It is likely that this pattern of SME engagement will only continue and grow. It is also imperative for Australian companies, in order to be competitive, to look at different business models and push their thinking to leverage the advantages of the global economy. China will be a major player in this, particularly as Chinese companies internationalise and the rise of the Chinese multinational becomes more evident.

In fact, it is suggested that we are witnessing a new pattern of global business engagement which is giving rise to the ‘small global enterprise’ or micro-multinational. These are a new breed of small businesses – enabled by internet-based communication tools – that manage production, deliver services and direct resources, and have employees and clients in more than one country. The rise of such small global enterprises is due to technological advances in the use of the internet, cheaper telephony and lower travelling costs that allow the implementation of unique business models and the capture of new business opportunities.

Australia, positioned as it is in Asia and with evidence of small businesses successfully operating in China, needs to understand this emerging trend of small ‘virtual’ global enterprises and strengthen its capabilities to capitalize on it for the China market.

Openness and adaptability

While there is no single secret ingredient to business success in China for Australian enterprises, organizations that are open to learning and that can adapt quickly to new knowledge and circumstances seem better placed to advance their business aspirations in China.

In the background analysis in our study, business engagement is constantly affected by the complexity of China, the cultural imperatives that intersect with doing business and the blurring of boundaries that are usually separate domains in the West – between the public and private sector, between the commercial and the personal, and between economic and societal considerations.

Given the heavy impact of such external influences on business enterprises engaging with China, new strategic thinking is called for. As well, planning on different time scales is essential, requiring both commitment for the long haul and agility in the immediate responses to dynamic and fast-paced changes in the current business environment.

The strategic imperative for China is all about being flexible, but not naive, in relation to critical external influences, such as culture; and this allows responses to these external elements to be toned down, integrated or dialed up as needed. Such responses need to be made against the enterprise’s explicit strategy for engaging with the Chinese market.

For example, smart firms will escalate the cultural discussion to the boardroom table to transform thinking about their best approaches to the China market tailored to the enterprise’s particular business strategy and operations. Continuous adaptation to the market is needed and the enterprise must constantly be learning and incorporating what it has learnt in order to be successful in the market. Improvisation and experimentation by businesses is to be welcomed, based on learning by doing and learning by interacting with others. This is reinforced by key themes running through the case study findings of the critical effect on business of effective partners, relationships, communications and understanding of the diversity in both the opportunities and constraints of the China market.

In short, sustainable success for Australian businesses in China does not come by accident or just by being in the right place at the right time. Enterprises must be nimble and flexible, but at the same time, be operating to their own well-informed, structured and thoughtful business strategy. They need to focus on expertly adapting and implementing their distinctive and best practice business offerings, which they work hard on and adapt and vary over the long term to reflect their understanding of the changing dynamics of China as it affects their approach to engaging with this market.

In other words, there is no right equation for engaging with China, but the critical elements for success are discernable for businesses alert to them and capable of harnessing them.

Days of you carrying a luggage full of brochures at tradeshows, waiting in the darkness for the safe arrival of shipping vessels and spending $200 on faxes and $120 on courier for export documents a day, are gone.

Instead, having a teleconference on Skype with suppliers in a remote area while locating your shipping vessel on MarineTraffic and checking Alipay for incoming payment is becoming normality for more and more international traders today.

A transparent world and a shorter value chain

Nowadays, free information is only a click away. Middlemen who used to make a fortune by having access to information and overseas contacts find it extremely hard to operate a business the old way. Wholesalers can easily find manufacturers through search engines, online directories (such as World Directory of Importers Associations) and online marketplaces (such as Alibaba); importers and exporters can search and compare global tradeshows at www.tsnn.com.  Hence the traditional value chain consisting of manufacturers, exporters, importers, distributors, sub-distributors /wholesalers and retailers is being replaced by shorter ones.

The implication for importers and exporters is to reposition themselves and add value to the value chain through

• tailored international trade facilitation services
• development of own brands
• possession of special technology knowhow/intellectual property
• strong expertise in a niche market/focused product category
• strong financing capabilities
• backward or forward integration to shorten the value chain and lift profit margin

More E-traders and more B2C trades

Technology enables international traders to conduct trade via internet. Exporters have started cutting off importers and distributors and built their own online stores to target end customers. They may have their own shopping websites in the target country’s language or have online stores on the target country’s online B2C marketplaces. For example, if you target Chinese end customers, you may consider having a Chinese online store on Taobao or Tmall. The practical procedures are still complex as it may involve third parties to manage the online store and marketing in the target country, but it provides a new avenue for exporters to interact with end customers and improve their bottom line by cutting off middlemen.

Some online export models exporters adopt are as follows:

• An online Brand Store with its own domain name managed by the exporter or its distributor or a third party in the target country
• An online store on a target country’s B2C marketplace managed by the exporter’s own office or its distributor/agent or an online store management company in the target country
• Order function on the distributor’s website in the target country
• Order function on the exporter’s own multi-lingual website

Virtual office and virtual organisation structure

Micro-multinational is a recent term referring to small or micro businesses which operate globally by leveraging the capabilities and expertise of upstream and/or downstream partners at various markets overseas. For example, a one-man-band business in Sydney may work as a consolidator of its own brand, and outsource all or part of research and development (R&D), manufacturing, sales and marketing and after-sale services to third parties overseas. In one case, a R&D academy in California is the business’ R&D department, an original equipment manufacturer (OEM) in inland China works as the business’ production base and its licensing partners overseas are the sales arm of the business. The business does not even have a physical office but rents a virtual office at minimal cost to have a shared receptionist manning the phone nine to five. Although a micro-business is defined by the number of employees it has, the business still has an organisation chart and even generates sufficient revenue to match sizable businesses. Technology enables the micro-multinational business to run on iPhone and iPad and communicate with all its “departments” overseas when the business owner is travelling globally.

In the 21^st Century, Importers and exporters cannot be judged by the size of their office and the number of employees anymore.

Continuous learning and adaptability - a key to success

Global economic landscape in the 21^st century is being reshaped and boosted by knowledge and technology. A key to success for importers and exporters in this century is the ability to learn and adapt to new technology and new models to cope with the ever changing challenges, and seize fast moving opportunities. To catch up with the global industry and technology trend, and be more proactive, importers and exporters may consider taking the following actions:

• Subscribing to industry association and government’s E-newsletters
• Getting involved in social media and check competitors and industry activities via LinkedIn, Facebook, Twitter and search engines
• Regularly up-skilling through attending training programs and business events
• Allocating 15- 20 minutes a day to go through the titles and key contents in the business sections of major newspapers

Importers and exporters need to accept the fact that change is the norm of international trade today, and there is only one option- learn, adapt and succeed.

20 years ago, few people in China had private cars. 10 years ago, Chinese new money spent big on BMWs or Mercedes-Benzs while the Chinese middle class started buying their first cars. Today, the super rich in China drive Lamborghinis, Aston Martins, Paganis or Ferraris while more and more Chinese families are buying their 2^nd or 3^rd cars.

Well, we all know the Chinese are getting rich and picky, and they are not just spending big on cars. Louis Vuitton bags, the symbol of prestigious status in China 5 years ago, have now become popular accessories for young professionals while people with some more money are carrying Birkins around.

This looks like a perfect rosy picture of a booming market with a fast expanding consumer base which has an increasing personal wealth and strong aspiration for quality goods and services. Fully aware of the market potential in China, global suppliers swarmed into China in the past 2 decades for distribution channels to sell into China but many failed by making 2 mistakes.

First they failed to identify and keep themselves abreast with the changes of consumer needs and behaviour. They believed the Chinese market would absorb whatever they were able to supply as China was huge with diversified needs and lots of cash and Chinese consumers were less sophisticated. China is a fast growing market and so are Chinese consumers. As a matter of fact, with more overseas travel, more products on the shopping mall shelves and access to product and brand knowledge on the internet, Chinese consumers are becoming more picky. In the 1^st tier cities and some affluent 2^nd tier cities in China, the good days are gone when customers were happy to pay just for foreign brands. Hence, Louis Vuitton is setting up retail outlets in the 3^rd tier cities in China, trying to fully capitalise on the remaining consumers’ aspiration for foreign branded products before it totally fades away.

Second, some businesses over-emphasised the importance of distribution channels and market promotion, but forgot the first of the 4 fundamental elements (Product, Price, Place/Distribution and Promotion) of product marketing. If suppliers do not recognise customers’ needs or do not tailor products/services based on their findings of such needs, they will not be able to market and sell to China as nobody will want the products.

Chinese customers may not be as sophisticated in foreign consumer goods and services but they are catching up quickly and they do have their own needs which are different from a foreign suppliers’ previously existing markets. For example, in the pleasure boat sector, a sun deck with an open spa and kitchen on a boat may not be as attractive a feature to a typical Chinese customer as a Karaoke room with indoor smoking facilities, a jewellery locker and a huge massage spa in the master bedroom. To sell to China, manufacturers have to do the long overdue homework and come back to the fundamentals of providing products/services based on target customers’ needs. This does not mean excluding the possibilities of guiding customers’ needs through market education.

More haste, less speed.

China’s economy is slowing down, and the expected national leadership change at the 18^th National People’s Congress of P.R China later this year is delaying business decisions. This allows some time for exporters to reflect on their China strategy and develop a feasible plan so that they can build a stronger foothold in China and better seize the opportunities there.

China is the biggest foreign currency holder worldwide and its US dollar reserve is even bigger than the combined US dollar reserves of G7. To cash in its hard work and avoid the potential risks by another round of quantitative easing monetary policy in western countries (which is less possible now though), China has little choice but invest overseas and encourage import.

It seems to be all good news for Australian exporters, especially consumer goods exporters. We have been the biggest mining resources supplier for China and now China is opening a bigger door for Australian natural skincare products, seafood, wine, milk powder and fashion products. Isn’t it?

Hold on. Before we celebrate this exciting opportunity with champagne, there are a few things we must bear in mind so that we can really leverage this opportunity to grow the export to China business.

There is a saying about China’s consumer goods market: “Brand is more import than product, and price is more important than quality.”  This summarises the characteristics of 2 market segments in China: The upper market which judges products by brand, and the low end and mass market which is most price sensitive.  As a high cost country, Australia can rarely compete with China in product price. We have to focus on brand building and product differentiation to tap into the upper or middle-upper markets in China.

However, given the fact that over 95 percent of Australian businesses are SMEs, Australian exporters do not enjoy the luxury to spend big on brand building in a huge and unfamiliar Chinese market. Lots of SMEs’ marketing investment in China is like a sand dropping into a vast sea which ends up with no or little profit. Considering Beijing and Shanghai each has a population of over 20 million, almost bigger than Australia’s entire population, Australian exporters need to have realistic expectations, start with one city/region and commit all necessary resources to win the battle in this target city/region.  It might be smart to just target an identified niche market in one city, gain positive cash flow and then roll out to other markets and regions.

In most cases, Australian exporters are not alone doing the hard work in China. We usually leverage local distributors/agents in China. But one thing I have learned again and again from working with over 200 Australian companies to develop the market in China is never leave marketing to Chinese business partners’ good hands and think they will do the right thing. Unfortunately they may not, especially if they do it alone. Established Chinese distributors/agents may be competent in sales with their existing sales network and market experience, but they are often not willing to invest in building someone else’s brand or are incapable at conducting effective marketing. The mindset of ‘sales without marketing’ due to the practices within previous economic systems, the belief that strong ‘guanxi’ (relationship) makes sales and the concerns for wasting money on building someone else’s brand, are all barriers for Chinese businesses to be keen and effective in conducting marketing for foreign brands. Australian exporters need to leverage Chinese business partners’ local experiences and knowledge, develop a clear marketing strategy and work closely with Chinese business partners to build the brand and market the products in China.

To succeed in the competitive consumer goods market in China, Australian exporters also need to be agile, creative and committed. China works on a speed much faster than Australia. Its ever changing business opportunities and challenges require businesses to respond quickly to the changes. Also the Chinese market is not at a maturity stage and so accepts new ideas, emerging trends and pioneer approaches. Creative ideas, especially creative marketing, may help businesses build brands overnight.  However, in most cases, as you may have heard, “when you go to China, double your budget and take twice the planned time to develop the market. Committed businesses eventually all achieve success in China.”

The key word is qualifying. Conduct due diligence on your Chinese manufacturing partners/suppliers before you sign the contract.

Here are some factors you must include in your due diligence on Chinese manufacturers / suppliers:

• Is the business a genuine business? Obtain a copy of their business licence and, if possible, check with the local Commerce and Industry Administration Bureau on the legitimacy of the Chinese business.
• Is the business a manufacturer? Smart Chinese middlemen understand you would like to cut down costs and go directly to the manufacturers. Hence they may work on a manufacturing site picture, put it on their websites and claim they are manufacturing what you need. Again obtain the copy of their business licence to check their business scope and/or investigate  with local government agencies/industry bodies directly or through a Chinese business consultant.
• Does the Chinese manufacturer have surplus manufacturing capacity and capabilities to meet your current and potentially growing demand? Check with the staff of the company on their manufacturing capabilities. If you are placing big orders and/or look at working with a long-term manufacturing partner, it is worth visiting the Chinese manufacturers to better assess their manufacturing capabilities.
• Does the Chinese manufacturer have quality control systems in place? Do they have an international quality accreditation? Obtain a copy and check with the appropriate authorisation organisation.
• Is the Chinese manufacturer a reputable business in the industry and protect clients’ intellectual property? Check with industry bodies, their clients and suppliers and conduct secondary research to find information on the company’s reputation.
• Is the Chinese manufacturer committed to work with you? If your business is not vital to them, you are at the very bottom of the list when they prioritise orders and hence may delay the production or delivery for your order during peak time.

For assistance with due diligence on Chinese companies or further information on doing business with China, contact Sara Cheng, Manager-Greater China Region, Australian Business Consulting Solutions, Email: sara.cheng@australianbusiness.com.au or call 1800 505 529

Sara Cheng, Manager for Greater China, shares her eight “must-knows” before you set up the business in China.

1. You have more than one option for a local presence in China.

Your China presence may be in the form of a wholly owned foreign enterprise, a contractual joint venture, an equity joint venture, a representative office or a local representation by a third party (local secretary/representation service companies).

2. Carefully define your business scope for the China presence.

China National Development and Reform Commission may prohibit, restrict, permit or encourage your business set-up based on your business categorization and scope. Hence it is critical to carefully define your business scope so as to be permitted or encouraged to set up the presence.

3. Select the right location for your China operation.

China abandoned its preferential tax rate for investments of foreign companies from January 1st 2008. However, some areas still offer local preferential policies for foreign investors in terms of land leasing/procurement, staff recruitment and management, local tax etc.

4. Confirm the minimum registered capital for your China operation.

The Chinese government requires certain minimum registered capital for various types of businesses. However, local Industry and Commerce Administrations may decide on your minimum registered capital based on their judgement of your business scope and operation scale. You need to confirm with local government agencies the minimum registered capital through local contacts before taking any other actions in case they require an amount far above your financial resources available for the China operation.

5. Integrate commercial clauses in the Articles of Association to maximise profit repatriation into Australia.

You may have commercial arrangements between your Head Office in Australia and the subsidiary in China in order to guarantee maximum profit repatriation. However, some arrangements must be included as part of the Articles of Association to be valid. The Articles of Association is to be submitted to local government agencies for approval and filing during business license registration. Hence, you must incorporate necessary clauses in the Articles of Association in the first instance.

6. Fully understand employers’ responsibilities and liabilities in China.

China issued the new Law of Labour in 2007 which specified issues on employment contract, redundancy, etc. Without preliminary knowledge of this law, you may end up spending a huge amount of time and money terminating the contract with under performing employees, as the structure of the contract was wrong. You also need to be aware of the mandatory employee welfare and benefits so as to include such cost in the budget.

7. Conduct thorough due diligence and credit check on your joint venture partners.

Your partners may not be what they claim to be. China has the business culture to show their wealth and status by driving luxurious cars, wearing prestigious watches and owning an impressive factory. Hence your Chinese business partners may look financially viable and well connected but, as a matter of fact, live on bank loans and personal debts.

8. Develop a comprehensive local employee management system.

It is a hard job to recruit the right staff in a foreign country. It is even harder to effectively manage the local staff in a foreign country. A sound and robust employee management system will encourage the engagement and commitment of local staff and avoid potential risks. You may include reporting and communication policies, staff training, performance assessment, remuneration, career management and employee management manual in the system.

If you need any assistance or require further information regarding business set-up in China, please contact Sara at sara.cheng@australianbusiness.com.au or  follow Sara on twitter.com/DoBizWithChina

In the last decade China’s annual GDP growth fluctuated between 7.5 and 13 percent while OECD countries posted 3 to 4 percent. China’s year-on-year GDP growth for the first quarter of 2010 was 11.9 percent, second quarter 10.3 percent and annual growth is expected to be over 10 percent this year.

China’s labour cost is still competitive compared with most frequently talked about emerging economies, it recovered quickly from the global financial crisis and last year its exports outperformed global competitors.

However, China is also facing some challenges: an unbalanced and possibly unsustainable GDP contribution structure that relies heavily on government investment, construction and export; soaring labour costs; a rapidly growing gap between rich and poor; environmental issues and limited mining resources.

To tackle these China has started implementing strategies focusing on building a sustainable economy and stable society by increasing individual income, going green and directing both domestic and foreign investment into under-developed regions.

With this backdrop and ongoing changes, China presents multi-faceted opportunities for foreign businesses to export, import, outsource manufacturing or invest there.

The changing picture

As a result of policies aimed at increasing individual income levels and boosting domestic demand, consumer purchasing power has soared, and in spite of the GFC its retailing sector grew by over 15.4 percent in 2009 and is expected to maintain this annual rate over the next decade. As reported by the World Bank, China has replaced Japan as the world’s second-largest economy as measured by purchasing power.

In response to this huge and rapidly increasing market potential, overseas companies have been keenly pursuing opportunities in the consumer goods and service markets. Coca Cola, KFC, Louis Vuitton, Chanel and many other household names established a foothold in the first tier cities such as Beijing, Shanghai and Guangzhou over 15 years ago and then started exploring the second and third tier cities to further capitalise on increasing consumer demand and purchasing power.

While these well-known brands entered the second and third tier cities, overseas SMEs ignored them, thinking these markets did not have purchasing power to afford nor consumer awareness to appreciate quality goods and services. These businesses perceived first tier cities with high individual income to be more international, easier targets and hence guarantee better return.

However, thousands of such SMEs plus almost every big consumer goods and services player all competing in the first tier cities created a very crowded and competitive market. Some SMEs have found themselves lost in a huge, vibrant but tough market which their capacity can hardly cope with.

Where the affluent are

Today, with fast increasing income and consumer purchasing power, the second and third tier cities in China present unprecedented opportunities for small and medium sized foreign consumer goods and service providers.

In the list of the richest 20 cities in China in terms of GDP per capita, three out of four first tier cities are ranked as number one, eight and 13, while the other 17 are all second or third tier cities, mostly with over four million population each.

Compared with the first tier cities, affluent second and third cities provide:

* Big but still manageable market size
* Fast growing purchasing power
* Increasing demand for quality Western goods and personal services
* Less competition.

Australian exporters have not overlooked opportunities to capitalise on China’s fast growing purchasing power. In 2008 China overtook Japan as Australia’s biggest trading partner. Australia exported USD26.1 billion of goods and services to China in the first half of this year, a 54.3 percent increase from the same period last year, on top of GFC-affected 5.4 percent annual growth in 2009.

While the World Factory takes two thirds of Australia’s iron ore export by value, the affluent among China’s 1.3 billion population are consuming Australia’s quality lamb and shiraz. China is also the biggest buyer of Australian education and the fourth biggest overseas market for Australian tourism.

A favourable perception is one of critical factors facilitating Australian goods and services entering China. Australia and China are both in Asia-Oceania region, with similar time zones. There are neither historical issues nor major disputes and Chinese perceive Australia to be a green country with abundant natural resources and a relaxed lifestyle.

For these reasons Australia’s products, especially lifestyle products such as sportswear and equipment, health supplementary products, food and beverage and personal services, are perceived to be superior to those of most OECD countries. Lifestyle-related consumer goods and services Australian exporters could consider offering to China are:

Services

Exotic café, salon, restaurants, entertainment centres, clubs

Fitness centres with advanced programs/concepts

Education for children

Vocational education and training

Tourism

Products

Food and beverage

Health products

Fashion, jewellery and accessories

Home decoration and renovation

Products for children

However, in a foreseeable future, Australian exporters can hardly compete with Chinese competitors in the price-sensitive mass market or competitive first tier cities. The market scale in cities such as Beijing, Shanghai and Guangzhou is beyond the capacity of most SMEs. But, by leveraging our positive image and reputation for premium quality, Australian exporters, especially SMEs, should consider targeting niche markets to service the emerging middle and upper middle class in the second and third tier cities.

Go inland to manufacture

With the average competitive labour cost at around CNY15,000 to CNY25,000 (equivalent to around AUD2500 to AUD4000) per head per year and the economy of scale accumulated over the 30 years since it opened its doors to Western countries, China is an attractive sourcing and outsourcing destination compared to developed economies and even some emerging third-world manufacturing countries.

However, labour cost in export manufacturing-oriented East and South China is rising quickly and squeezing manufacturers’ lean profit margin. Contributing over 84 percent of China’s national export revenue, East China and South China are also stretched in term of land supply and facilities.

To implement a strategy of sustainability and move up the value chain, on 6 April this year the China State Council issued the Guidance on Better Usage of Foreign Capital Investment, directing foreign investment in labour intensive products to under-developed regions in Central and West China.

This national strategy is intended to maintain China’s domination as a world factory while reducing environmental damage and depletion of resources and alleviating the labour shortage and soaring costs in export manufacturing oriented regions. In line with this policy, local governments in Central and West China provide incentives such as low interest loans and priority land supply for foreign investment, across a range of industry sectors.

One example of inland relocation is the labour intensive textile manufacturing sector. The growth rate of investment in this sector nationwide was 4.8 percent in 2009 but ranged between 15 percent to over 40 percent in various provinces in Central and West China, compared with minus 5 percent in the traditional manufacturing bases in East China.

By relocating to Central and West China, textile companies can reduce up to 40 percent total manufacturing cost, thanks to low labour cost, preferential policies in land leasing and tax in these regions. In the six provinces in East China such as the Jiangsu, Zhejiang and Shandong provinces, where the majority of revenue comes from export, the average profit margin of two thirds of textile enterprises is a mere 0.62 percent.

Forty percent cost savings can revitalise almost any business, including low profit margin industries such as textiles, toys and electronic goods. Relocating to low cost regions in Central and West China provides a compelling competitive edge to manufacturers based in China.

With all these trends and changes in China, Australian businesses should take a break and review their China strategy, look beyond the horizon and adopt a smarter strategy—consider going west and/or exploring second and third tier cities.

It is rarely a short or cheap journey to do business with China. Companies looking to capitalise on new opportunities need to carefully study Chinese regulations, understand Chinese consumer behaviour, develop a robust China strategy and even leverage Chinese expertise to do business there successfully. All the little things can add up to big difference or even a commercial miracle in China.

—Sara Cheng, Manager Greater China region, Australian Business International Trade Services, has assisted over 100 Australian companies to do business with China and co-authored Engage China—The Realities for Australian Businesses.

For more information visit her blog http://chinasolutions.wordpress.com or Australian Business’ website www.globalinsights.com.au