Doing business in China has become more complex over the past decade in China. Among the main causes are the slowing economy, exacerbated by three years of zero-Covid policies, growing protectionism and support for local preference in the supply chain, and an increasingly conflictual US-China relationship encouraging caution from America’s allies when dealing with China.
A growing pain, as signaled by many of Influence Matters clients and partners operating in China, is the increasing difficulty in receiving accurate and trustful information from within China. To quote the global comms leader of a large semiconductor company: “when we will need to make a significant announcement in China, I’m not sure I can trust our local agency or even our team in China to counsel me objectively on our communication strategy”. The disconnect between China and the West reaches organizations internally and externally.
Culturally, while America and some countries in Europe have a clear-cut separation between business and politics (business is business!), the cut is not so clear in China. Multinationals need more than ever an objective and trustful partner to advise them in connecting the right way with stakeholders in China.
At Influence Matters, we don’t believe that the fundamentals of communicating in China have changed. They have been strengthened, if anything, for any non-Chinese company operating in China. Let me explain.
Customers need to be convinced to work with a Western partner. Other stakeholders, including employees, the Government and partners, need to be demonstrated the benefits of working with a non-Chinese supplier or partner. More than the benefits, Chinese counterparts will need to trust that there is no risk in working with a particular international partner. Explicitly communicating on compliance in both China and the West, as well as the less tangible Chinese society advancement goals.
Influence Matters team developed a comprehensive multi-channel strategy introducing Winbond’s technologies to the engineer-based audiences.
Those fundamentals are especially true for semiconductor companies, one of Influence Matters’ industry focus. Chips have been at the center of the growing trade tensions between China and the rest of the world, coined the “Chip War” by leading news outlets and industry specialists everywhere. China imports more value in semiconductors than any other product or commodity every year, and the country’s inability, so far, to rival advanced semiconductor innovation and production centers around the world, means China is very much dependent on imports and cooperation with international suppliers.
Influence Matters team leveraged its creativity & expertise in developing COVID19 world-friendly communication plans to maximize Soitec’s brand awareness in China.
Additionally, the global manufacturing center for anything that includes electronics, and thus chips, remains in China. Offshoring efforts out of China from western companies have met walls of inefficiency, labor shortage, or costs when considering other options (South-East Asia or Europe/U.S.). China’s home market rose to become the second largest in the world, consuming many of the products it manufactures and assembles. China even overtook Germany, then Japan, to become the largest exporter of cars, basically computers on wheels these days, in the world in 2022[link].
Influence Matters developed an interactive content strategy integrating comics for HARTING to reach identified decision makers demonstrating HARTING’s superiority in industrial connectivity solutions supporting China’s smart economy growth.
While diplomatic relations are complicated between China and the West, business and technology decoupling is far from being a reality, and would not be in the interest of either party and, more importantly, the progress of humanity.
Our team in China helps multinationals make sense of the Chinese market and their ecosystem of influence. We support our clients’ growth with advisory solutions that prepare them for leveraging milestones to their full communication and marketing potential, as well as for emerging issues and crises posing a risk to their reputation, and business. Our awareness building programs and sales support campaigns are designed to efficiently support our client’s business objectives in China.
