The one-size-fits-all approach to doing business in the mainland can be a disaster in a country as diverse as Europe where laws and attitudes are changing rapidly
With China's economy booming, everyone wants a piece of the action. But, as many investors are finding out, not everyone comes out on top. In fact, many have virtually lost their shirts.
Joel Laykin, president of Hong Kong-based public relations agency Laykin Communications, says: 'Very few of the companies we represent have seen the black ink yet. Those that have ... had a focus and a niche. They also knew who they were getting into bed with.'
China overtook the United States as the biggest recipient of foreign direct investment (FDI) last year, attracting an estimated US$52.7 billion, according to figures from the mainland's Ministry of Foreign Trade and Economic Co-operation. This year's figures are expected to be even better, with the Chinese government projecting a 5 per cent increase. But with the world's fastest-growing economy, many analysts think those estimates are conservative.
'Investor friends tell me [they're keeping it] low to surprise people,' says John L. Chan, author of China Streetsmart, What You MUST Know to Be Effective and Profitable in China.
It goes without saying that there are as many predictions about which way China's economy is heading as there are analysts. Basically, China-watchers can be broadly divided into bulls and bears. This can make things very difficult for investors trying to make business decisions.