Our Friday session at IPREX was an outstanding education on the state of business in China. Our Asia partners and hosts, Upstream Asia, arranged for a presentation from William Reinfeld, a management consultant, Asia expert and professor at the China Europe International Business School.

Here are the highlights from his presentation:
1. China is modernizing, not Westernizing. They don't want to be like America. They do want to be rich and powerful. Deng Xiaoping famously said, "To be rich is glorious," and the Chinese people are taking this to heart, albeit in their own way.
2. Foreigners doing business in China must understand the Chinese philosophy of Confucianism, the way of thought that still drives Chinese to this day.
3. China is not one market, but many markets, cultures, and ethnicities.
4. China's businesses are built on two models: family businesses or state-owned entities.
5. In China, the law of large numbers attracts foreign interest, such as:
A population of 1.3 billion people; 500 million in the urban centers.
25% of urban households are middle class; 75% will be by 2015.
500 million mobile subscribers and growing at 19% annually.
31 million credit-card holders
China accounts for 30% of global merchandise exports.
China has the second highest investment rate in R&D in the world (second to the US)
Approximately 200 million Internet users (second only to the US).
12 million private cars
Literacy rate (male) of more than 90%
Less than 10% of Chinese citizens are in the Communist Party.
There are 350 million Chinese who speak English; it's the largest English-speaking population in the world.
The other major point Reinfeld made I found so interesting, and relevant to us in the PR profession, is how important relationships are in doing business in China. Reinfeld said, "Business here (in China) is not transaction based, it's relationship based." Chinese look beyond the transaction. In a business situation, the Chinese are looking for a person to show "Guanxi", which is ones true personal interest in a relationship.
What I love about this is that every business relationship should have Guanxi, and as PR Professionals, we should be trying to build Guanxi between our clients and their stakeholders.
Later in the day, we heard from Sam Flemming, CEO of CIC, a social-media monitoring firm that monitors only in Asia. Sam was a wealth of information about social media use in China. Some nuggets:
The Chinese use social-media tools to a higher degree than Americans; The net culture is very mainstream.
75 million Chinese are using social media
There are 50 million Chinese bloggers
The most popular blogger in the world (in terms of traffic) is Chinese
I'll be coming back from Shanghai with many new insights. This trip has been incredible.
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China, Pudong, Shanghai, IPREX, CIC