Contact: Working Your Network

Getting access to government officials can be challenging at times, but this section provides you with several good approaches. You can use one or all of the suggested methods.

Getting your Chinese employees to make connections

Most senior Chinese business executives know the right way to get access to Chinese government officials. They know how to build a network of relationships that can help support your business activities. They also understand the right way to go about using Chinese protocol to gain access to certain officials. Relying on your local senior management team to build the right relationships is a good approach to bettering your government relations.

Calling in company big shots to access senior officials

Sometimes, due to their relative position within the company, your senior Chinese executives may be unable to gain access to specific government officials. Chinese companies view hierarchy as very important, so only people at certain levels can talk formally to the same level of person at another company or organization. Often, your company can gain access to more senior Chinese officials by wheeling in your company’s C-level people (CEOs, CFOs, COOs, and so on).

If you plan to get your company’s C-level executives to meet Chinese officials, start planning the visit well in advance. We recommended that you start at least two months ahead of time. And don’t be surprised to get confirmation of the meeting just weeks or possibly days before the meeting.

If your company executive suite looks more like a revolving door these days, bringing in your senior executives to help you in China can backfire. The Chinese value consistency, so you need to have a stable management within your company for this approach to work.

Connecting executives with your Chinese network Get your company’s senior executives directly involved in the government relations process so they can understand how things really work in China. Sometimes, senior executives presume that if something can’t be done, it’s because your China team doesn’t know how to do it. Some executives at your headquarters may challenge you on the amount of effort that’s being put into government relationships. Developing government contacts at the local (never mind provincial or national) level takes a lot of time and effort. This idea is especially true for your local senior Chinese executives, who may need to spend considerable time networking with Chinese officials. And then your business has to deal with the additional time and expense of sending company executives from headquarters. They, too, should be actively engaged in developing relationships with Chinese government officials.

Depending on your Chinese partner

Assuming your relationship is a good one, consider getting assistance from your Chinese partner. Visiting your targeted government officials with your Chinese business partner gives your company more respect in the eyes of the government officials. You’re showing the government officials that your Chinese business partner is important to your business.

This approach to government relations works well for firms that are planning or are involved in joint ventures with the Chinese — especially with China’s privately owned companies. Using the strengths of your Chinese partner’s relationships, you get the benefit of their political connections. This perk is especially useful when you’re attempting to get approvals from government officials. (Again, this method works only when your joint venture is a real partnership and the relationship is going well.) Usually, the foreign company complements the relationship with technical expertise, and the Chinese company has the local market operating knowledge and relationships to make business deals happen.

Although your Chinese partner may have the relationships to get an approval, they may be in a rush to get the paperwork done at the expense of getting the details right. So be sure to stay engaged in the process so that any paperwork submitted to the authorities reflects what’s best for your company. For example, you want to make sure you’re submitting a proper description of your company’s proposed scope of business activity (see Chapter 7).

Using the relationships that your partner has with officials can be advantageous, but it’s important that you build your own government relations, too. You want some insurance in case something goes wrong with your Chinese partner.

Turning to consultants

Some firms use business consultants, retired Chinese officials, or retired diplomatic personnel to get an audience with certain officials. Consultants may have not only some strong relationships in government circles but also deep insights in a particular industry. You may use consultants successfully if they truly have key relationships and can deliver on their promises. (For more on consultants, go to Chapter 4.)

Although many people see this approach as a good option, it’s not the preferred method for most businesses. The best way forward is for your company to build your own government relationships (or build them in conjunction with your Chinese partner). After all, your company should be capable of developing, managing, and controlling its own network of business and government contacts. Your firm can reap the benefits directly this way instead of relying on some middleman to make it all happen. (For more on building relationships in China, go to Chapter 15.)

Plenty of consultants in China promise to introduce your company to the most connected government contacts. The best advice is to go very slowly with people making such a promise. Just be sure to check out any local consultant’s background, references, and success with other companies.