ASEAN businessmen need to take precautions against risks when in-vesting in China, according to Lee Peng Shu, the vice-president of Singapore Chinese Chamber of Commerce and Industry's education committee.
Lee said that Asean businessmen needed to understand the Chinese culture in dealing with foreigners to avoid conflicts when their business partnership had progressed.
Giving an example, Lee said that Hong Kong and Taiwan businessmen had a good understanding of the culture in China and tend to enter China together as a group and succeed in their venture.
Malaysia and Singapore businessmen should co-operate and venture into China instead of going alone to have better chances of success, he said at MCA National Economic Conference Challenges of Globalisation: Repositioning Mal-aysian Business in Seri Kembangan yesterday.
He said Asean businessmen could take advantage of China's massive manufacturing capabilities to produce goods for the global markets.
They should look at developing their intellectual property which brings in higher value and outsource the manufacturing of goods, he said.
He said American sport company Nike, was more of a marketing firm than a manufacturer of sporting attire and equipment as it outsourced the production of its goods.
I-Bhd chairman Datuk Lim Kim Hong said building a close rapport with China authorities and businessmen was important as it took him more than three years to set up his first factory in China in 1984.
After having good relationship, setting a new factory took less than six months, he said.
JP Morgan Chase Bank (Hong Kong) chief economist Joan Zheng said China's long-term prospects appeared much more attractive and that Malaysian and Asean businessmen should take advantage of China's booming economy.
Asean countries should develop strategies to compete and co-exist with China, she said in her paper China - The Emerging Economic Powerhouse: Its Impacts.
Describing China as having a rosy long-term growth prospect, Zheng said further reforms should reduce China's current lack of right incentives structure and inadequate financial intermediation.
She also said that China's growth would eventually reduce its social welfare burden and rising cost of education.
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