ManageChina - Case Study
From the Asialink Business China Country Starter Pack
Tim Lyons, who set up ManageChina nine years ago, says newcomers to China need to hit the ground running.
Normal business networking reaches a new level of sophistication in China, where it is impossible to be "across" a vast, diverse and complex market.
Australian Tim Lyons, who set up ManageChina nine years ago to provide "non-core" services to businesses, says newcomers to China need to hit the ground running.
"You need networks wherever you go but in China you almost need an instant network when you land. The chambers of commerce in China are more important than anywhere I've worked before. The first thing you should be doing is reaching out to the local chamber of commerce and asking how to get involved and building your network out from there. It’s a starting point, a kick-off. It's mission critical."
Chinese business processes can be complex, and been-there-done-that information is invaluable, says Lyons.
"I read a PricewaterhouseCoopers report about 'triangulating' your information in China and that's what we do in our business, we ask someone, check in over here then check a third time because it's not as clear a system as Australia's. You find yourself reaching out to others to seek clarity and they're doing the same. So there's always a need in China to reach into your network."
"China gives us the opportunity, we need to be respectful of that and follow the rules and they're not very difficult rules to follow."
"I worked with an Australian service provider who landed about 18 months ago, and from the very beginning he registered his trademark, made sure all his staff were employed properly, had the company completely legally set up before he started anything, did Chinese lessons, paid his taxes on time. All the things you would do in a business in Australia he did in China, and he won."
Not all newcomers are as diligent, says Lyons. Oversights might not be deliberate, but operating in an unfamiliar environment is not an excuse.
"The number of people who don't do any of it is extraordinary, it still amazes me. People probably do need advice around those things but they make too many presumptions and then start pulling their hair out and saying 'why are things like this?' It just is like that.
"The fact is, the Chinese are very clear about what your obligations are. We're allowed to set up companies in our own right and in most cases they don't require a business partner. Being able to do that in a country like China is extraordinary, in many Asian countries it's not like that. China gives us the opportunity, we need to be respectful of that and follow the rules and they're not very difficult rules to follow."
ManageChina provides services including legal, administration, customer service, HR and IT. Lyons is understandably an advocate for "doing it right".