“ The potential for business with China is huge, but companies have to do their homework.”

Even though the Beijing Games are just behind us, for many it may feel like a distant memory of watching athletes on TV, listening to Radio 5 Live and reading background articles in the papers. Surely there are also no business opportunities through the Games anymore... Or are there?

GLE oneLondon is organising a Trade Mission to Beijing in November to look at the procurement chain there and learn from best practice models on the ground. Forming

partnerships with Chinese businesses that secured contracts with the Beijing Games will put Londonbased companies in a much stronger position to bid for contracts relating to the 2012 Games in London.

On July 31st GLE oneLondon together with TCA Consultancy organised a seminar that informed companies about current procurement opportunities in China and the benefits of a Trade Mission. Monica Montero, Project Manager at GLE oneLondon told the 40 businessmen and- women in the

audience about their Procurement Mission to China, to, some of whom had previous experience with China and others who were interested in extending their business into one of the fastest growing markets of the world. The mission is targeting businesses in the sports sector as well as other businesses interested in the Chinese market and general procurement processes.

Mr. Guo Yinghui, Chief Representative of the China Council for the Promotion of International

Trade( CCPIT) agreed with Ms Montero about the opportunities in China, but he didn’ t conceal the challenges either. While Mr. Guo proudly listed figures that symbolise China’ s rise as an economic world power, such as 2nd largest export nation in the world and an average GDP growth of 9.9 % since 1978 with 10.6 % in the first quarter of 2008, he also explained some of the cultural differences between China and the UK, when it comes to doing business. This starts from the well known example of exchanging business cards- while it is not an offense to slip a business card straight into your pocket over here, with Chinese Businessmen, you are supposed to give and receive the card with both hands, read it and only after some time put it into your pocket. Another far more reaching problem is the lack of an institution like‘ Companies House’ in China. If you want to get hold of a company’ s details, you might have to deal with several different public bodies. Mr. Guo reminded everyone that, because China is such a large and diverse country, specific market research, whether as part of a Trade Mission or by the individual business, is a must before starting to trade with China.

During a very lively and constructive discussion further potentially problematic issues were raised, such as dispute settlements and corruption. However, the bottom

line on which the speakers and those businessmen and women with past experience with China agreed was this: Whatever the problem is, there is a way around it and China is definitely a market worth exploring, if you do your homework.

Thomas Chan, Director of TCA Consultancy, summed up the entrepreneurial spirit of the event by stating three essentials to do business successfully with China: 1. Personal Presence: You have to go there- without personally experiencing the market it will be difficult to access 2. Partners: You have to have personal contacts- ideally work together with a local partner 3. Funds: Whether you are sourcing or selling, you have to have a solid physical and financial infrastructure in place. So, whilst the Beijing Games are in the past, business opportunities in China and in connection to the 2012 Games in London are in the future and could be potentially very lucrative.

If you want to find out more about GLE oneLondon’ s Trade Mission to China, please contact Monica Montero at monica. m @ gle. co. uk.

engage | uk ISSUE SEVEN 2008