Q: Are my company's products and services needed in the Chinese market?

A: Yes, U.S.-based products and services are highly regarded in China, but the key phrase in doing business in China is, "Trusted Partner." An architectural, engineering or contracting firm can not perform its services in mainland China as a stand-alone venture. Such companies must partner with a Chinese-based organization.

Jonathan R. Woetzel, director of McKinsey & Co.'s Shanghai office, wrote in the The McKinsey Quarterly, 2004 Special Edition that,

China's importance in the world economy clearly varies greatly by sector. In some, the country plays a critical role in the global balance of supply and demand (basic materials and energy), the supply chain (personal computers), or the growth of demand for consumer products (automobiles and mobile phones). Infrastructure-focused multinationals that sell products from elevators to subway systems are finding China to be their most important market for growth. In other fields, the country is not yet a significant factor in global trade, because sophisticated customers are lacking (for high-performance fibers, to give one example) or regulatory barriers impede competition (as in the financial-services and media industries).

What I find interesting about Mr. Woetzel's comments is that the infrastructure of the country still has high growth potential. This is good news not just for architects, engineers and contractors, but for U.S. building product manufacturers too. American ingenuity is highly regarded in China and the process of how we move from design to construction to facility management is one that intrigues the Chinese. Our use of systems like the CSI 16 Division format is one that is becoming a standard in many Chinese projects.

If you are thinking about entering the China market, do your research on the need for the types of services or products your organization provides and build a trusted relationship with a Chinese-based company that complements your proposition.

Thanks to Paul Doherty, AIA. He is the managing director of General Land Corp., a full-service, global real estate development firm with a focus on the Asia Pacific market. He is an author, educator, analyst and consultant to Fortune 500 organizations, global government agencies and prominent institutions and is on the board of directors of the International Facility Management Association (IFMA). He can be contacted at pdoherty@general-land.com.

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