Canadian took me inside a Chinese Factory... I Didn’t Expect This

Summary

In this insightful discussion, a successful entrepreneur shares his experiences of doing business in China, highlighting the importance of personal relationships, understanding local culture, and the efficiency of China's manufacturing capabilities. He emphasizes the significance of face-to-face interactions, the advantages of China's robust supply chain, and the flexibility in scaling production. The entrepreneur also explains the challenges and benefits of the industry, the value of skilled labor in China, and how his company focuses on contract manufacturing without competing with clients. He concludes by advising anyone looking to succeed in China to immerse themselves in the culture and build genuine connections.

Takeaways

• 😀 Face-to-face meetings are crucial for building trust and relationships in China. It's important to spend time with people to understand their values and business philosophy.
• 😀 Sending emails or messages alone is insufficient; people want to know who you are behind the business, and personal interactions are key to successful partnerships.
• 😀 In China, meeting people offline and spending time together, including meals or casual conversations, helps strengthen business ties.
• 😀 Asking personal questions about family, education, and life philosophies helps foster deeper connections and trust with Chinese business partners.
• 😀 You don't need a Chinese partner to do business in industries like contract manufacturing, as long as the industry allows for foreign ownership.
• 😀 The Chinese manufacturing supply chain is a significant competitive advantage, allowing quick turnaround times for product development and production.
• 😀 Manufacturing in China offers unmatched speed, where products can go from design to production and shipping in as little as two months.
• 😀 Outside China, it's more challenging to replicate the same level of manufacturing knowledge and flexibility, especially in high-mix, medium-volume production.
• 😀 There is a high supply of skilled workers in China, especially in fields like welding, thanks to decades of experience in manufacturing.
• 😀 The key challenge in China is selecting the right equipment to ensure manufacturing flexibility and versatility for different production needs.
• 😀 Building products that serve industries such as mining and agriculture helps improve safety and efficiency, making the job fulfilling and rewarding for manufacturers.

Q & A

What is the most important aspect of doing business in China?

The most important aspect is building personal relationships. It’s crucial to meet people in person and understand their values, philosophy, and how they think. This is essential for establishing trust and successful partnerships in China.

Is it sufficient to rely on emails and digital communication when doing business in China?

No, relying solely on emails or digital communication is not enough. Personal interactions are key. Spending time with people in person and showing genuine interest in them builds stronger business relationships.

How can you build trust with Chinese business partners?

To build trust, you need to meet people offline, such as through meals or face-to-face meetings. Asking personal questions, like about family or their thoughts on education, helps to understand their values and creates a personal connection.

Do you need a Chinese partner to do business in China?

Not necessarily. In industries like contract manufacturing, you don’t need a Chinese partner. Foreign businesses can own 100% of their company in these fields, as long as the industry isn’t restricted.

How does China’s supply chain advantage contribute to its business success?

China’s supply chain is highly reactive, allowing for rapid production and shipping. A new product can be brought to life within 2 months, and shipments can be made within 30 days, which is a significant competitive advantage over other countries.

Can you replicate China’s manufacturing capabilities in Canada or other countries?

It would be difficult to replicate China's capabilities, especially in high-mix, medium-volume manufacturing. Countries like Canada and those in Europe lack the same level of manufacturing knowledge and infrastructure.

What is the best way to approach a Chinese manufacturer for business?

You can approach a Chinese manufacturer through their website, email, or live chat. It’s important to introduce your product and discuss potential opportunities for collaboration.

Are there any special offers for people reaching out for the first time?

Yes, if someone reaches out and mentions 'Max Chernov,' they can receive a 10% discount on the first tooling order, valid until June 2025.

Is finding skilled labor a challenge in China?

While it’s never easy to find the right people for any job, China has a large supply of skilled labor due to its decades of manufacturing experience. The workforce is highly capable, especially in industries like welding.

What makes working in China rewarding for the speaker?

The speaker finds it rewarding to bring new products to life, especially those that help industries like mining and agriculture. Seeing the products used around the world and knowing they contribute to safety and efficiency is a major source of fulfillment.