China BizConnect

Selling technology to any foreign government can be challenging due to national security concerns and the bias to support the local industry. This is especially the case in China, where heightened international tensions and protectionist policies in the West have caused China to look for ways to reduce its reliance on foreign technology. Despite these challenges, the Chinese government remains an attractive target for many foreign technology vendors, because it is a major technology consumer that relies on foreign suppliers to meet many of its needs. This article explores key challenges foreign tech vendors face when selling to the Chinese government. And for companies up to the challenge, it investigates important considerations and tactics for succeeding in government sales.

The choice of where to land in China will have a huge impact on your business. But too often companies make this decision in an ad hoc manner. Xiaoling Wu and Jin Hu of the Guangzhou Liaison Office in Boston share their views on how foreign companies should choose a Chinese city.

Success in China requires effective collaboration between the foreign headquarters and the China team. Executives back home rely on Chinese staff who understand the unique requirements of the local market. And the China team relies on the headquarters to instill the corporate mission and culture. Many foreign companies use an expat manager to enable close ties with the headquarters. However, it is important to understand expat managers’ limitations and empower Chinese managers to fill the gap in key leadership functions.

Making a successful China market entry is especially challenging for foreign technology companies. In fact, many companies spend a great deal of time and money attempting to establish a foothold in China, but later find that their product isn’t a good match for the market. TechCode’s Tony DeOrsey advocates a disciplined approach to evaluating opportunities in China that includes legal due diligence, market research, and product validation with Chinese customers.

Digital marketing in China requires a different approach than in other markets. Foreign companies looking to enter China should first investigate the unique requirements of their target Chinese customers. They must also learn to use new marketing channels to reach these customers. While China offers great opportunities, it is a fast-moving and highly competitive business environment. In order to succeed, foreign companies need to fully commit to the effort.

When you think about the internet in China, you might imagine nearly a billion people using their smartphones in a vast digital landscape that is isolated from the rest of the world. What you may not consider is that China’s internet is also teeming with “things.” To get an overview of China’s IoT industry and to find out what opportunities are available for foreign vendors, we spoke with Chance Jiang, and early Chinese IoT innovator.

One of the most striking differences between the IT industry in China and the West is the “996” 72-hour work week. To get a better understanding of the advantages and disadvantages of “996,” we conducted inquiry calls with six China-based IT analysts and boiled down our findings into thirteen views that provide a comprehensive overview of the topic.

A trade show can be an effective platform for foreign technology vendors to enter the China market. Achieving success requires up-front planning, tireless execution during the show, and diligent follow up. Many of the details involved are different from other markets and require a unique approach. In this episode, Michelle Zou discusses what is required for foreign technology leaders to manage a successful Chinese trade show from beginning to end.

One of the first steps in doing business in China is establishing relationships with potential partners and customers. To do this, you will want to meet people face-to-face. A trade show is a great venue to attract a crowd and to have many conversations in a short period of time. In this episode, Michelle Zou discusses the reasons why foreign technology companies should include trade shows in their China go-to-market strategy and provides recommendations for choosing the right shows and getting expert advice.

Dimensional Insight (DI), an American data analytics software and services firm, entered the China market with limited resources and relatively inexperienced staff. After originally hoping to be profitable in year one, they quickly found out how difficult the market was, and began planning for the long-term. Although DI faced many challenges, including a low market price, relatively high costs of doing business, and relentless competition, they succeeded in building a nationally recognized healthcare analytics brand.

Software Productivity Research (SPR), an American software and consulting firm, came to China looking to establish a foothold in the defense sector. Unfortunately, after operating for three years, SPR lacked significant sales and exited the market. In this case study, general manager Michael Bragen shares details about SPR’s efforts in China as well as some insights learned from this experience.

An important element of success when doing business in China is establishing strong relationships with partners. Computer Aid Inc. (CAI), an American outsourcing service provider, didn’t have a long-term strategy for the China market. But they did have a paying customer and a manager who was wise enough to focus on building relationships. David Broderick, former Director of Global Services Delivery, shares CAI’s China story.

Going global is a survival strategy for many tech companies, and China is too big of the global market to ignore. This episode explores past, present, and possible future aspects of China’s tech market that foreign tech company leaders should be aware of when considering whether to enter the China market.

In this episode co-hosts Tim Lindeman and Michael Bragen share a little bit about themselves and their plans for future China BizConnect episodes.