Mainland China Trading Company

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Doing Business In China

The most populous country in the world, The People’s Republic of China is today emerginas one of the major global economies. China is infamously known as a country of etiquette and ceremonies. The unique character of the Chinese is built on a strong sense of pride in their ancient history and culture.

Understanding the basic Chinese cultural, ethical and business values is paramount to any organisation wanting to conduct business in today’s rapidly progressing China.

Chinese Business Continues To Be Based on Family Ties

Mainstream Chinese culture is rooted in Confucianism. The belief system of Confucianism is based on the teachings and writings of the 6th Century BCE philosopher Confucius. Emphasis is placed on the concept of relationships and the elements of responsibility and obligation – especially obligation to one’s family.

Francis Fukuyama, in his landmark book, “Trust: The Social Virtues and the Creation of Prosperity” says that despite the explosion of Chinese industry around the world in the past twenty years and the high-tech, modern façade of many Chinese companies, Chinese businesses continue to be based on family ties. Simply put, there is a very strong inclination on the part of the Chinese to trust only people related to them, and conversely to distrust people outside their family and kinship group.

Fukuyama says, “The tendency of Chinese firms to remain small and family managed . . . constitute an advantage. They have done best in relatively labor-intensive sectors and in sectors with fast-changing, highly-segmented, and therefore small markets such as textiles and apparel, trading, timber and other commodities, PC components and assembly, leather goods, small-scale metalworking, furniture, plastics, toys, paper products and banking. A small, family-managed firm is highly flexible and can make decisions rapidly.”

In order to take advantage of highly flexible, low-cost Chinese manufacturing, you need someone that can navigate the unique economic and social characteristics of Chinese society. Mainland China Trading & Consulting knows Chinese culture, because we are Chinese! We are American too, and that’s the beauty of our business model. And you get to reap the benefits of that model – if you’re willing.

Low-cost China sourcing: South Africa case study

Note: This posting is an abridged version of an article by Julian Hewitt which originally appeared on The Beijing Axis website. The full verison of the article can be accessed here.

Two and a half decades of economic reform have placed China firmly on the path of rapid industrialization. China’s recent ascension to the World Trade Organisation has further hastened its opening up to the rest of the world.

At the same time, South Africa has also enjoyed a fruitful period of economic and political progress after many years of international isolation. However, it was only since the establishment of formal diplomatic ties in 1998 that these two regional leaders have begun to realize a significant growth in trade.

China annouces 11.2% growth for Q4

China Economic Review China's economy grew 11.2% in the fourth quarter of 2007 despite government efforts to slow the pace of expansion, AP reported. The figure represented only a slight decline from third-quarter growth of 11.5%. Annual growth was given as 11.4%, the highest figure since 1994. China's rapid growth is seen as a sign that it remains insulated from a possible US recession, but some, including the Chinese government, worry that measures to restrict borrowing and investment will not prevent the economy from overheating. Inflationary fears have been fueled by rising consumer price figures, which were up 4.8% in 2007, well above the government's 3% target for the year. The official growth target for 2008 is 8%.

Import Export and Sourcing in China

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Large American manufacturers are already manufacturing in China. Typically companies doing $50MM or less do not have the resources (time, money, expertise) to scale their business to accommodate a full-scale facility manufacturing in China. Downtown Beijing

Sure, you may be importing already (from Taiwan, Hong Kong, or even the mainland), but are you getting the best prices? Are you having quality control issues? Shipping issues? Do you even know who the decision makers are? That's where we come in. We take the fear and mystery out of dealing with the Chinese.

Why are we different? Because this is a family business. With family both in the U.S. and in China and in Chinese factories, we have the experience and the relationships that others do not. Whether you are interested in China sourcing, China manufacturing, or doing any China business, we can help.

How We Add Value To Manufacturers:

We partner with you so our interests are the same!
NO RISK transactions. All pricing is contingent on your approval
Price Negotiations - our greatest strength!
Quality Control. Are you familiar with the different Chinese management styles? It helps to know.
Translations, interpretation, trade show representation
Background checking. Know who you're dealing with!

Not all products are right for Chinese manufacturing. Let us help you determine if you can make money with Chinese manufacturing.

Will You Join Us on the Next Factory Trip?

Below, Ms. Zhang, a partner with MCTC (in white coat) and factory owners and managers, host an American client from Fort Worth Texas on recent factory inspection trip to China. Will you join us on the next trip? Learn more...

Group on recent product inspection trip