So You Want to do Business in China

(Utah Pulse)How much do you really know about China? Michael Chen, an attorney with Kirton & McConkie, provided answers to that question for Utah businessmen at the law firm’s latest Global Law and Business Forum.

“Virtually everything you know about China is true,” said Chen. “However, so is the opposite.” Chen says the interplay between China’s federal government, and the individual governments within each province and city is a crucial understanding that anyone wishing to do business in China needs to have.

However, Chen says understanding of China in the West is not at the level it should be. “If you read a book about China, it was probably written 30 to 40 years ago. So many things have happened there, even in the last five years, that it’s often difficult to keep up.”

Even basic understanding of China is lacking in the United States, according to Chen. “If someone in China can name all 50 states, we call them a high school student. If someone in Utah can name all the Chinese provinces, we call them a ‘China expert,’” says Chen with a grin.

If you want to do business in China, Chen says the most important thing is “know what you need” before taking the plunge. Chen adds that once a company hires someone in China, then realizes they haven’t hired the right person, it’s difficult to replace them. “Take the time to get a concrete idea of what you want to accomplish, then take the time to do your background work.”

• Listen to the Global Law and Business Forum with Michael Chen.

Michael Chen holds degrees from the People’s Public Security University of China and the J. Reuben Clark Law School at Brigham Young University. He is a member of Kirton International Law Practice Section specializing in international trade and investment, corporations, immigration, intellectual property, technology related to legal matters, and recently enacted direct selling regulations in China.