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How Do You Set Up an Office in China? Seven Suggestions

Situation: A company has an opportunity to build an office in China. Their principal objective is to reduce their cost of providing services. A partner company has offered them space in its existing office in China. What is your experience working with Chinese culture? How do you set up an office in China?

Advice from the CEOs:

  • Hire someone in your US office with an engineering background who is fluent both in Mandarin and in the subtleties of Chinese language and culture. Fluency in Chinese language and culture is particularly critical when you are dealing with difficult process issues.
    • Investigate local organizations such as the Silicon Valley Chinese Engineers Association. Through these organizations you may find candidates for this role who are also excellent engineers and additions to your team.
  • Employee loyalty issues in China will be more challenging than in the US. Chinese employees want to build their resumes as quickly as possible and perceive that job-hopping will facilitate this, just as was the case during the dot.com boom in Silicon Valley.
  • Offer a significant carrot to Chinese employees – after X years of work for us in China, you get Y months of work, at our expense, in our US office. This is a much sought-after experience for Chinese employees.
    • Be prepared to deal with departure soon after return to China, or employees declining to return to China at the end of their US stint.
  • Build a stronger process documentation system than you need in the US to assure both that work is done to your standards, and so that you can easily replace talent lost to turnover.
  • Have a recruiting program based in China to fill your personnel needs.
  • You will experience a culture clash when it comes to the value placed on equity and in understanding the meaning of a contract. For China in its current state of development, neither term is well-established by US standards.
  • Time tracking is not clean cut in China and vacation time needs differ. An example is the month of February for Chinese New Year.