We are hosting an event at MidMarket on Thursday evening, March 7th. It has to do with the ins and outs of doing business in Hong Kong and China. We will be joined by some people whose experiences and insights may be very different than you might expect. This is made possible through the auspices of our good friend Louis Ho and the Hong Kong Trade Development Council and we have asked our client Frank van Lint to share some comments about an IPO his Dutch investment group sponsored in China which debuted on the Hang Seng.
Last month marked the ninth anniversary of our entry into China. You may remember it. Marriott Conshohocken : Patrick Hurley, late in the evening in Hong Kong, interviewing group of public company executives in a live feed to a big TV screen at the Marriott, where Graeme Howard led a discussion with a panel of executives of companies here with activities there. You may also remember Jim Papada of Technitrol, a Philadelphia company, which in a few short years had most of its employees in China, saying that if you are not already there it’s over.
This was all pretty interesting and activities around the event helped to get MidMarket into China in a meaningful way.
We’ve remained active in China, an ever interesting and ever complicated place to do business and have worked for a number of companies and some very large entities. But it’s such a big and diverse country, that if you’re not careful, you can end up trying to do business in the wrong places for the wrong reasons.
MidMarket partner Telu Tsai is pretty good at spotting the tight situations and navigating clients through them. Time and again, he would say to me “You need to understand, Chinese people think differently.” I think we understand that now. We’ve learned some other things; for example, it’s not only companies with high labor content products that can lower costs there. It can work just as well for those with high material content too.
For example, we are working with a company with a product where material amounts to 75-80% of total cost – surely not a candidate for off-shoring? Wrong. It’s done its homework, knows how significant its savings could be, and knows it would be foolish not to seriously plan manufacturing in Asia. There are many other stories like this. You have to know where and how to look.
There’s been one constant through it all, and that’s Louis and HKTDC. The HKTDC is conducting an event in New York City in June, with the March event at MidMarket serving as a preview. We will be joined by Lewis and his team along with other guests with interesting experiences in China.
This will be a good opportunity to get an update, to find out what predictions made way back when at the Marriott came true, hear something about a cross-border deal involving European investors in a now public HK Exchange company actually worked, and finally to get some insights into what’s going on and where you might want to be, and how to get there.