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Want to do business in China? Make sure you're high-tech, cutting edge and green

by Stephen Hawley Martin
for Virginia Business
July 6, 2007

Things have grown to the point in China where the government can begin to be selective concerning the types of businesses it wants to attract. And it wants to attract the types of businesses everyone else in the world wants: clean, high-tech, non- polluting and green-friendly enterprises.

Such businesses can expect to be offered more and better economic incentives and may even be in position to bargain. So, if you have such a business to offer, don't forget to mention you may also be considering India as an alternative location. The Chinese won't be offended. They would respect you less if you didn't do your due diligence.

One thing I've learned while visiting China and doing researching on how to do business there is that the Chinese government and the Chinese people are enamored with advanced technology. They are looking ways to leapfrog old technologies in order to be on the cutting edge. For example, Intel tried to dump outdated processors on the Chinese market, no doubt thinking China was behind anyway and would welcome a cost break. It didn't work. Only the most advanced processors would sell, and they sell very well.

For cell phones to be successful in China they need all the latest bells and whistles. Text messaging, for example, was popular in China even before the Blackberry was introduced.

Solar hot water heaters are big businesses in China. Just drive along any highway and take a look at the roof tops. But that's not all. The city of Beijing, China's second-largest energy consumer, is building a "solar street" where buildings, streetlights, and other features will run entirely on energy from the sun. A second pilot project in the city's Xuanwu Park has solar power for lighting, heating and refrigeration.

Why are they after "green" businesses? High-tech products and renewable energy make good press and bolster the standings of the politicians and government officials who champion them.

The message is that high-tech and cutting-edge are in demand. If your company has this to offer, be sure to package it and sell it to the industrial development people. It may get you a better deal on taxes and on land.

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Stephen Hawley Martin is a former principal of The Martin Agency in Richmond and the author of more than half a dozen books including his newest, Lean Enterprise Leader: How to Get Things Done Without Doing It All Yourself. He is editor and publisher of The Oaklea Press, a book publishing business dedicated primarily to helping business executives increase productivity.