I believe that the concerns faced by companies from any country are very common when it comes to seeking business opportunities in China, or anywhere else where the business, language, and cultural differences are significant.

While the following advice is not an in-depth report of how to do business internationally, I hope that it may highlight some common sense approaches to frequent general questions.

As many experts would advise, it is a good first step for any company (that wants to do business in China for the first time) to think of China as Europe, with vast cultural and language differences between one end of the Country and the other.

In doing business abroad, it is important to approach the new opportunity with good attitude. Of course, certain precautions are expected to be taken by any business when entering a new market. However, do ensure that you approach the new relationship with your Chinese counterparts with an attitude of trust, openness, patience, and mutual cooperation. I have seen/heard of companies that approached a new relationship with an attitude of “I’ll assume my potential partner is a crook unless they can prove otherwise” and became the business case for a self-fulfilling prophecy.

Remember that your potential foreign business partners are as apprehensive of doing business with you as you are with them. So keep an open mind and the chances of your success will automatically improve significantly.

With that in mind, the common challenges, in my experience, would be the following:

1. Language

This includes both interpretation and translation. You will need a decent interpreter to accompany you to meetings and trade shows. Also note that translations of legal contracts from English to Chinese by professionals can be costly, but necessary. Ensure that there is an agreement with the Chinese counterpart about which version (English or Chinese) prevails if a change in the meaning of a clause or document occurs during translation.

2. Communications

Perhaps a related aspect to the language factor is the ‘culture of communication’ that exists in the new market(s). Questions such as “What is a common response time to emails and messages” in China are important to understand beforehand in order to manage expectations. This will help you to avoid a communications gap that might lead you (or them) to misinterpret long response times as an indication of non-interest in the business opportunity instead of it being a simple cultural norm in that particular country.

Here is one hint: Be aware of local holidays in the other country. Chinese New Year is usually accompanied with a month-long hiatus in business activities. Labour day equates to a week of slow-down. Major events like elections can also contribute to a general slowing down of business activities.

3. Legitimacy and Non-Performance

This is the big and common concern with doing business in foreign countries. It is even a bigger concern in countries where regulatory frameworks don’t offer much protection or viable recourse for non-delivery/performance.

I would suggest you follow some of the following methods in vetting your opportunities/partners so as to reduce the risk of seeking legal recourse later:

• Seek help and recommendations from your country’s trade offices in China (e.g. Brazilian Chamber of Commerce, World Trade Centers, Commercial/Cultural Attache office of your Embassy in China, etc.). Often times they can vouch for the reputation of a local company or business person.

• Check your potential partner’s standing/reputation in local professional associations of your industry, accreditation bodies, or 3rd-party assessors (e.g. credit bureaus)

• Seek referrals from business people you can trust, whether in China or in your Country.

For a new market entrant, almost all the above can be easily achieved by working with a local partner/consultant. They can help with your legal, business, financial, and cultural integration. They can also assist with interpretation, HR, and sourcing what you need.

So go forth and frollick in this exciting world of international business and global opportunity. The rewards are certainly worth it, and a little courage can take you and your company a long way!

As an iconic part of the New York City skyline, the Chrysler Building has been depicted countlessly in almost every medium—film, photography, video games, art, advertising, music, literature, and even fashion, as its use quickly establishes without doubt the location in which the depicted events are occurring. (Wikipedia)

The purchase marks yet another major North American investment by a Middle Eastern fund. Gulf countries, flush with revenues from unprecedented oil prices, are taking that extra cash and pouring it back into the countries who paid for the oil in the first place.

In Canada, foreign ownership is a sensitive political issue. Critics decry the so called ‘hollowing-out’ of corporate Canada, and warn of its effect on national security and sovereignty interests. Meanwhile, other countries with friendlier ownership regulations are realizing the positive effects of free markets. Businesses, consumers, and shareholders enjoy increases in wealth, competitive services, and exchange/transfer of global expertise.

The Canadian discussion on foreign ownership rules heated up last month with the release of the 65 recommendations arrived at by the Competition Policy Review Panel after a one-year study commissioned by the federal government (click here for report). The panel concluded that “the federal government needs to scrap its ban on bank mergers, lighten up its foreign ownership restrictions of uranium and airline assets, and liberalize the telecommunications industry“, reported the Globe and Mail.

Shortly after the release of the panel’s recommendations on foreign ownership, the Canadian Center for Policy Alternatives (CCPA) countered the study with a report arguing that Canada needs less foreign ownership, not more. Readers of this blog who are from Atlantic Canada may remember that the CCPA is the organization that vehemently argued against Atlantica and the proposal led by AIMS (Atlantic Institute for Market Studies). Click here for a previous blog post that discussed the confrontation in more detail.

The recommendations regarding the telcom sector specially hit close to home with many Canadians. The existing oligopoly of wireless providers in Canada has seen increasing criticism in the past few months. In the spotlight are exuberant data charges highlighted by the advent of the iPhone which will hit Canadian shelves for the first time tomorrow exclusively through Rogers Wireless.

Bell Aliant (BCE) and Telus Mobility are also under fire for announcing the introduction of new charges for each text message received by cell phone users unless they subscribe to a monthly plan. Many consumers feel that the competitive landscape in the telcom sector is unfriendly to the needs of the consumer.

While protectionists scorn the findings of the Competition Policy Review Panel, they fail to address a real hollowing-out currently taking place in Canada: existing foreign owners abandoning their Canadian assets and relocating elsewhere.

A rising Canadian dollar coupled with expensive union demands is leaving Ontario with an Auto Workers crisis as American auto plants shut down operations and moved out of Canada to friendlier markets. Atlantic provinces have been experiencing a drain of skilled workers for some time now as various plant shut-downs force skilled workers to relocate to western Canada in search of jobs.

So where will the next billion dollars of oil money be invested? Most likely not in Canada.

Here are five leads into top business opportunities for businesses seeking to position themselves along growth sectors in the Middle East:

1. Finance and Banking ICT & Software: The Arab banking sector will invest $1.8 Billion in information and communication technologies in 2008, a 15% increase from what they already spent in 2007. Arab banks boast one of the highest rates of growth in technology investment in the world (mainly because they got on the boat a little later than everyone else). Ofcourse, being a late adopter in this sector also means that Arab banks are being fitted with the latest technologies in the industry, giving them an edge compared to banks using archaic systems. Canada has 83 ICT companies that specialize in the Financial industry. Please, at least one of you should go down there and grab a contract or two!

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1. Sharia-Compliant Hospitality Products: Aha! Read that again. It’s not Sharia-compliant Banking. This time, a new Islamic trend is set to launch, and with it a new need for niche products. This May, Dubai-based Al-Mullah Properties will announce plans to invest $2 Billion to develop an Islamically-compliant hotel brand portfolio appealing to lifestyle travelers – both Muslim and non-Muslim. A new chain of up to 90 international hotels (branded as Cliftonwood, Adham and Wings) will operate with universal Islamic codes such as no alcohol and Halal food only. If you are a manufacturer/exporter of luxury and fine food products for the hospitality industry, now is the time to think about new product lines or re-branding existing products.

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1. Cement and Construction Materials/Technologies: Everyone knows it. Dubai is the fastest growing city in the world, with anywhere between 15 to 25% of the world’s cranes working constantly on its towers. The real estate boom in the UAE is about to face a crisis. Cement is on back log! Zawya.com reported that “Companies that provide ready-mix concrete have issued their clients notices that they are not in a position to supply more than 45 percent of the ready-mix orders. In some cases, ready-mix companies have even ceased production.” If any company has a solution, get on the next plane to Dubai and bring home some goat meat! (sorry, no bacon in UAE)

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1. Recycling and Industrial Waste Management Solutions: With all that construction comes much industrial waste. Lots of it. Recycling and Waste Management technologies have an open opportunity here. (Edit July 13 2008: This recommendation has been confirmed here).

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1. Oil, Oil, and Oil: Duh! Oil services are still in high demand. Better, cheaper extraction technologies. Maintenance services for older wells. Training services for labour localization initiatives. It’s all there. This week Bahrain announced plans to add 700 new oil wells to meet increasing energy demands. This summer, Yemen will award its first round of contracts for off-shore operations, prompting a scurry by local firms to find international partners who have much needed expertise in providing offshore services in a market that traditionally relied on on-shore production.

And there you have it. If you are a company that found this advice helpful and was able to capitalize on it in any way, shape, or form… congratulations! You are one of very few smart chicks who found a crack in the shell of Canadian reluctance and broke out successfully!