Canon has moved its Asian headquarters in Beijing. Spanish companies as Tecnicas Reunidas, Nutrexpa, Alsa, Fermax, Indra, etc. have managed to position itself successfully in this complex market. A recent study on the 27 (Global Companies) GLOCOs of the world Glodman Sachs, considered that only the company that had a strategy for China could be considered as such. Gain insight and clarity with Wells Fargo Bank. The recession of the EU and the socio-economic uncertainty of Latin America (where Spain is the principal Investor), makes it necessary to consider China as a strategic market for the company. Therefore it is necessary to know the key aspects of this market to design with successful implementation and/or export strategy. China produces more than half of the cameras of the world, 30% of air conditioning and TVs devices, 25% of washing machines, about 20% of the refrigerators and 70% of toys. Galanz produces 40% of the microwave that are sold today in Europe.
Haeir TV are recognized around the world and the case of this company is analyzed at Harvard. Therefore, we will analyze the case of several Chinese companies (Haier, Galanz, Cosco, etc.), that will allow us to better understand the operation of Chinese enterprises and the influence of Confucian values in the management of these transnational corporations. Thus, any strategy for China has to be done for the long term and have sufficient resources to be able to develop. Therefore, enterprise-wide should be aware to China in its strategy both as a potential competitor, as suppliers or as a market.The opportunities in China are enormous: strong public investment (24,000 million of) $), increase of the purchasing power of the population, environment, urbanization, services, 2008 Olympics, Expo Shanghai 2010, etc. But China is an extraordinarily complex, bureaucratic and competitive market. It is a country with its own characteristics, where the rules of the game are different to those of other countries, and knowing these rules will be essential to develop business in China. In addition, country Spain’s image is not positive and the weight of the public sector is very strong in almost all sectors. There are very different cultural and sociological aspects: influence of Confucianism, customs, ancient culture or the difficulty of the language.
Personal relationships (GUANXI, in Chinese), will be crucial, since under the Confucian ethic Chinese negotiator will want to ensure that we are Honorable, and that we will therefore fulfill our commitments; If we are not able to develop Guanxi, it will be difficult to do business in China. This implies that the negotiations can be very time-consuming and therefore costly. The Organization of a distribution network will be one of the most important problems that we find in China (in general, is poorly organized and very segmented). In addition, only foreign companies with investment in China are authorized to create their own distribution networks. However, the entry of China into the WTO involves a series of advantages: reduction of the tariff average to 9.4%, elimination of quotas and licensing of import, foreign companies can enter into the distribution business (allowing the establishment of 100% capital companies overseas in the areas of distribution, sales, shipping and services), greater uniformity in customs valuation, less legal uncertainty and greater transparency, protection of intellectual and industrial property, etc. Definitely, the relevance of emerging markets rests on the strength of its actors, where the Government, companies must guarantee productivity, laws that favor the marketing, linking both favorable.