The Sun Rises In Asia, Finally.

This is a guest post from Archan Mehta.

Note from Mike: I enjoyed this post from Archan on two levels: Firstly I think he makes valid points for anyone considering a joint venture with another person, irrespective of where. And secondly, I've believed for some time that the world's next economic super power is going to be in Asia. Over the centuries we've had Egypt, Greece, Rome, Spain, Britain and currently The United States as the lead economy. Where next? China is a good bet, and I think India is worth a small wager as well.

Image: zmkstudio / FreeDigitalPhotos.net

Suddenly, China is in the news. If you own a small company, maybe you should be interested in this Asian tiger. In the coming years, China will give the U.S. a run for its money.

China's domestic market has great potential and it has the largest population in the world. Translation: there are millions and millions of consumers in China. And the Chinese have good purchasing power and are hungry to buy your products and/or services.

If you are interested in forming any equity joint venture, China can provide land and labour while it's partner can provide capital and supplies. A joint venture can pave the way to success because it is a means to exploit China's useful resources, such as plentiful land, cheap labour and a large domestic market.

The challenge, however, is to find the right partner for a successful joint venture. The most important issue is the compatibility between partners. Otherwise, the entire operation can dissolve. You don't want to be a victim of such a disaster.

One way out of this impasse is to devise a questionnaire for finding out potential partners. Find out what they know and what they can do for you. Building trust and confidence is an essential ingredient for a healthy partnership.

In case of trouble shooting, you will need to be on the spot quickly to sort it out. Unlike Westerners, Chinese people don't appreciate discussing sensitive issues on the telephone. However, if you remember the personal touch, Chinese people will take this as a sign that you respect them.

The essential requirement is that both sides should agree on the venture's objectives and then choose and support the right CEO.

Unfortunately, Westerners tend to be in a hurry to get things done. This is not a good idea because your Chinese partner may expect you to demonstrate patience during the negotiations. Thus, companies that succeed with Chinese joint ventures start early and expand their time horizons. Be aware of the fact that it may take several years for a joint venture to achieve profitability. Thus, you have to be flexible, adaptable and willing to change as per your situation and circumstances.

The Western approach of leaving it to the individuals to take the initiative and independent decision-making may not work in China. Chinese managers are not used to taking responsibility. They may not be dynamic and ambitious like their Western counterparts. Instead, Chinese managers may prefer to take their own time for achieving their business goals.

The Western sense of accountability and independent decision-making is not applicable in another cultural context. Instead, Chinese managers are used to collective decision-making. You should pay close attention to your employees and encourage them to attend training and development seminars and reward innovative behaviour.

Do you agree with this assessment? What are your thoughts? Have you travelled to an exotic country only to find the local culture there different from what you had anticipated or expected? Did you venture abroad for business or for pleasure? Kindly share your experiences with us in the comments section. And thank you for your patronage here.

About the Author: Archan Mehta is a freelancer and hobbyist. Feel free to contact Archan at archanm@hotmail.com at your own convenience.