Multinational Expansion to China: Challenges and Ppportunities
With a population of 1.3 billion, China is the world’s largest consumer market. The unique market and logistics chain demand investment. As the business climate opens, multinational companies are establishing wholly foreign owned enterprises. Projects presently executed in China are among the largest green-field sites in the world, and the engineering teams that execute these projects are themselves fully globalized, multinational teams.
In the 1990’s, Europe and North American multinational companies learned to bridge engineering codes across the Atlantic. European design codes are now “harmonized” under EU directives. Across the Atlantic, NFPA and IEC are now synchronized, but what about NEPSI? ASME and PED vessels are made in the same shops, but what about SQL? Chinese codes are mostly unknown overseas. Chinese construction labor from western provinces is cheap, and speed of construction is incredible. Chinese construction safety is challenging, but with proper management, stakeholders achieve world-class results.
Intellectual property protection of technology presents a unique risk. Strategies to protect technology loss while enabling safety, quality and schedule goals are required for success.
The teams that execute projects in China comprise individuals from numerous countries worldwide. Managing a diverse team on a fast-track schedule presents numerous management challenges. The skills and insights of team members offer a rich opportunity for low execution costs and rapid schedule accomplishment.
Projects executed in China are different than projects executed anywhere else in the world. Maximizing the performance of a “globalized” team demands effective communication, patience and cultural insight.
