This book seeks to provide a deeper understanding of the issues that foreign companies will encounter in China, through a compilation of eight inter-related essays – each with a particular topic of focus. Through the use of real-life case studies and analysis of success and failures of some multinationals (MNCs), it aims to help chief executives develop strategies to effectively compete in the world’s fastest growing major economy. Each of the eight essays addresses a unique aspect of doing business in China.

The book starts off with the chapter on “The Great Transition” which outlines the opportunities and risks associated with doing business in China as the economy continues to open up. The chapter also ends with a helpful “Advice to CEOs” section that includes questions to interrogate the effectiveness of one’s China’s strategy.

The following chapters move the discussion forward to address other aspects of business operations in China, such as skill development for successful negotiations, competition with rising local firms, strategies to penetrate the domestic market and Chinese consumers’ behaviour and preferences. The table of contents reads like a list of hot-button issues for China business – though with the omission of one of the most pressing issues: staff recruitment and retention.

The book’s modular format allows it to explore a wide range of topics in an easily accessible format. The authors are also able to leverage a broad pool of experience so as to bring to the book a rich array of perspectives.

Of particular interest is the essay on “The Chinese Negotiation” written by John L. Graham and N. Mark Lam. It is helpful in dispelling many of the myths associated with business negotiation with the Chinese. For instance, well-known tools of etiquette such as “speaking to the Chinese in short sentences” or “wearing a conservative suit” would only get one’s foot into the door but not guarantee a successful negotiation nor sustain a long-term relationship.

It also yields many helpful and less obvious tips for business negotiations, such as the use of intermediaries and sending a person of similar social status with the negotiating party. The authors’ attempts to establish the reasons behind the Chinese negotiation style with reference to Chinese history are also appropriate.

The essay on “Short-term results: The Litmus Test for Success in China” also presents very useful and relevant case studies of MNCs operating in China such as Coca-cola, Kodak, Ericsson and Tingyi. These detailed accounts of MNCs succeeding amidst a challenging competitive and business environment would no doubt strike a chord with many readers.

Although a few of the essays offer in-depth analysis, other topics appear under-illustrated and lacking in concrete examples. Some of the book’s themes are a little too well-worn, such as the importance of “guan xi” or personal connections in China, as well as the role of the government in successful business execution.

While style editing is commendable, with a high degree of cohesion in writing styles, there is perhaps an unevenness among the articles in terms of the level of detail. As a compilation of various theories, it would have been helpful if there had been a concluding chapter to summarize key lessons learnt and relate them to one another. Some long term predictions about how the China business environment will evolve would also have been most welcome.

In addition, although there has been mention of the vast differences among the various regions in China, more focus has been placed on explaining the historical reasons behind this phenomenon rather than specifying the differences with specific case studies and statistics. The discussion of how businesses can adapt to local differences is also short and inconclusive.

Nevertheless, this book provides the reader with a thought-provoking look at China’s current stage of development as experienced by MNCs operating in the country. Readers will find it helpful to know what problems are experienced in common by their peers, so as to benchmark the effectiveness of their own China operations.

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