Doing Business in China: Lessons from a Decade on the Ground

I lived and worked in China for close to a decade. During that time, I built companies from scratch, established joint ventures with Chinese partners, and ran R&D operations with close to a thousand people. These were not distant, boardroom experiences. I was on the ground, in the factories, at the dinner tables, navigating the complexity firsthand.

Today, advising European companies on China from my base in Switzerland, I find that many of the lessons I learned the hard way remain as relevant as ever. The landscape has evolved, but the fundamentals of doing business in China have not changed as much as people think.

Here is what I wish someone had told me before I got on that first flight.

Relationships Are Not a Nicety. They Are the Infrastructure.

In Western business culture, we tend to separate the personal from the professional. We sign contracts, shake hands, and expect the legal framework to do the heavy lifting. In China, the relationship is the framework.

The Chinese concept of guanxi — the network of relationships and mutual obligations — is not just a cultural curiosity. It is the operating system of Chinese business. Every significant deal I closed in China was built on months, sometimes years, of relationship-building before any contract was discussed.

This does not mean you need to become someone you are not. In my experience, Chinese business partners deeply respect authenticity and directness, as long as it comes with genuine respect. What they do not respect is someone who flies in for a week, pushes for a signature, and flies home.

The biggest mistake European companies make in China is treating it as a transaction when it is fundamentally a relationship.

Joint Ventures: The Hardest and Most Rewarding Path

I have set up multiple joint ventures in China. Each one taught me something new about patience, negotiation, and the art of finding common ground between very different business cultures.

A joint venture with a Chinese partner is not like a partnership in Europe. The negotiation process itself is a test of your commitment and character. Expect it to take longer than you planned. Expect terms to be revisited. Expect the real negotiation to start after you thought you had agreed.

But when a JV works — and I have seen them work beautifully — the Chinese partner brings access, speed, and local knowledge that no amount of market research can replace. The key is choosing the right partner and investing the time to build genuine trust before you need it.

What I look for in a Chinese JV partner

• Alignment on long-term vision — Short-term opportunists make poor partners. I look for companies that think in decades, not quarters.
• Complementary strengths — The best JVs combine European technology or brand strength with Chinese market access and execution speed.
• Personal chemistry at the leadership level — In China, the relationship between the two leaders matters more than any contract clause.
• Financial transparency — This takes time to verify and should never be rushed.

Managing Large Teams in China

Running R&D operations with close to a thousand people in China was one of the most demanding and rewarding experiences of my career. The talent pool is extraordinary. The work ethic is intense. The pace of execution can be breathtaking.

But managing effectively in China requires adapting your leadership style without losing your identity. A few things I learned:

Hierarchy matters more than you think. Even in modern, tech-forward Chinese companies, respect for seniority and clear reporting lines are important. Flat organizational structures that work in Scandinavia or Switzerland can create confusion in China. This does not mean being authoritarian — it means being clear about who makes which decisions.

Face is not about ego. The concept of "face" — mianzi — is about dignity, respect, and social standing. Publicly correcting someone, even with good intentions, can do lasting damage to a working relationship. I learned to give critical feedback privately and to celebrate achievements publicly. This is good leadership anywhere, but in China it is essential.

Speed is a competitive advantage. Chinese teams can move from concept to prototype faster than almost anywhere else in the world. If your European processes slow them down with unnecessary approvals and compliance layers, you will lose the very advantage you came to China to gain. Find the right balance between governance and speed.

The Market Has Changed. The Opportunity Has Not.

China in 2026 is different from the China I first entered. The regulatory environment is more complex. Data localization requirements are strict. Competition from domestic companies is fiercer than ever. The geopolitical landscape adds uncertainty.

And yet, China remains the world's second-largest economy with a massive, increasingly sophisticated consumer base. For European companies with genuine quality, technology, or brand value, the opportunity is enormous — but the margin for error is smaller than it used to be.

What has changed most is that you can no longer wing it. The days of showing up in Shanghai with a product and a prayer are over. You need a clear strategy, the right local partners, and an advisor who has actually been in the trenches — not someone who read a report about it.

What I Advise European Companies Today

From my base in Switzerland, I now advise European companies navigating the China opportunity. Here is my standard guidance:

• Start with a question, not a plan. Too many companies arrive in China with a finished strategy. Instead, start by asking: what does the Chinese market actually need from us? The answer may surprise you.
• Invest in relationships before you invest money. Visit. Listen. Have dinner. Come back again. The investment of time pays for itself many times over.
• Choose your entry mode carefully. WFOE, JV, licensing, cross-border eCommerce — each has trade-offs. The right choice depends on your industry, risk appetite, and long-term ambition. There is no one-size-fits-all answer.
• Protect your IP, but do not let fear paralyze you. IP protection in China has improved dramatically. Register early, register locally, and structure your partnerships to keep your core technology under your control.
• Think beyond Shanghai and Beijing. Second-tier cities like Chengdu, Hangzhou, Wuhan, and Shenzhen offer exceptional talent, lower costs, and growing consumer markets. Some of my most successful operations were outside the obvious cities.

The Human Element

After a decade in China, what stays with me most is not the deals or the numbers. It is the people. The engineers who worked through the night because they believed in what we were building. The partners who became genuine friends. The moments of understanding across cultures that reminded me why international business, at its best, is one of the most human endeavors there is.

China is not easy. It is not simple. But for those willing to approach it with respect, patience, and genuine curiosity, it remains one of the most extraordinary places in the world to do business.

If you are considering China — or reconsidering your China strategy — I am happy to share more specific insights over a conversation. Every situation is different, and the best advice starts with listening.