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Aimed specifically at Western and non-Chinese businesses and managers this book offers a theoretical framework for understanding Chinese business culture and a practical guide to business practices, market conditions, negotiations, organizations, networks and the business environment in China and the factors that can lead to business success. The authors guide the reader through the processes of market entry, marketing and managing operations in this unique social and cultural context by including: case studies and examples of business ventures as diverse as ornamental lamps, car washes, sausages and outdoor clothing; discussions of the issues surrounding products, pricing, distribution and advertising; advice on choosing business partners, negotiating and entering Chinese Overseas markets; and, guides to further resources in local cultures to help businesses tailor their strategies to local conditions.Building on the strengths of the first two editions with new case studies, updated discussion of the evolving marketplace and its interactions with government and a new chapter on business law, the third edition of "Doing Business in China" will continue to be the number one resource for students of international business and managements studies and practitioners with an eye on China.

Tim Ambler is Senior Fellow at the London Business School.

Morgen Witzel is Honourary Senior Fellow at the School of Business and Economics, University of Exeter, and editor-in-chief of Corporate Finance Review.

Chao Xi is Assistant Professor at the Faculty of Law, the Chinese University of Hong Kong.

Foreword ix
Acknowledgements xii
Introduction 1
PART I 13
1 The road to Cathay 15
Research before the first visit 16
Market facts 18
Availability of facts 22
General knowledge and sensibilities 24
Options for visiting 27
Finding business partners 32
The decision to enter 34
2 Through a glass darkly: China from a Western perspective 37
Geography 38
History 40
Ethnicity and language 46
Culture 48
Government and the political situation 50
Economy 53
Chinese attitudes to the West 60
Why all this matters 62
Appendix 63
3 The furniture of the mind 69
Philosophy 70
Values 82
Economics 87
Strategy 89
Conclusions 94
4 Relationships and regulations 95
Guanxi 96
Guanxi and business 100
Government 102
Commercial relationships 110
Conclusions 113
5 Business and the law 115
Law-making 116
Courts and judges 119
Lawyers 120
Contracts 122
Arbitration and mediation 123
Intellectual property 125
Conclusion 127
An ethical interlude 128
PART II 137
6 Creating harmony: establishing businesses in China 139
Distribution and focus 141
Agencies and licensing 143
Joint ventures 144
Wholly foreign-owned enterprises 147
Identifying and negotiating with partners 148
Making the choice 155
7 The marketing mix 159
Looking back 161
Marketing strategy 163
Products, branding and packaging 165
Pricing 170
Promotion and advertising 171
Place, channels and distribution 179
Conclusions 182
8 The marketing process 185
Market research in the PRC 186
Other information 192
Planning 193
Conclusions 198
9 Rightness and correct form: the yi and li of
organisation in China 200
Hierarchies 204
Lack of specialisation 207
Decision-making and leadership 208
Management by relationships 209
The ‘personnel problem’ for Western companies inChina 211
Training and development 213
Recruitment and rewards 215
Conclusions 221
10 Doing business with the sojourners:
the overseas Chinese communities 223
The overseas Chinese 224
What sets the overseas Chinese apart? 229
Doing business with the overseas Chinese 238
Conclusions 243
11 China and the world 245
Skilled hands, skilled brains 247
Beyond the Great Wall 250
Implications 254
12 Western and Chinese commercial thinking 255
Summary of the book 256
Doing business in China: the ‘five pillars’ 262
Conclusions 266
Notes 267
Bibliography 272
Index 281
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