This was the second dinner that Bailey Fisher had hosted recently on China, in response to requests from CEOs - clearly a key growth opportunity for the cluster's technology & life sciences businesses. The speakers shared great insight.
Key take-aways from the UK/China business dinners:
- Have a specific strategic reason for pursuing business in China – simple size of market/available investment is not sufficient;
- Due to cultural, language and relationship development differences, in-country partnerships or a localised team/freelance workers are absolutely vital for business success in China;
- Don’t go it alone; organised events such as investor roadshows make life much easier
- In China, WeChat is embraced as a far less formal and cumbersome form of communication than email, and often expedites processes and negotiations significantly;
- The focus between the UK and China used to be very one dimensional. UK would sell to China and outsource there. Now China’s tech is catching up & there is currently a huge push in China for innovation. Historically this has been focused on B2C but is now targeting the B2B space. The government has put in a 5-year plan for AI development;
- 48% of global equity funding in AI has come from Chinese money. With new US policies limiting this, there will be a greater focus on UK/Europe;
- The market is dominated by Baidu, Alibaba & Tencent (BAT). They drive investment and set trends;
- Average time from start-up to unicorn is 4 years;
- IP protection is far more robust that people typically perceive – this is driven by China’s own need to progress their own technologies;
- Collectively the UK should be proactive in shaping China’s appetite and recognise that a passive approach will be interpreted as indifference;
- Don’t be fooled by the apparent large sums of VC money on offer from China – credible investors with experience are what matters and currently this represents a trickle;
- Common misconceptions can put people off seeking to work with China, however with the right partnerships and guidance, business is no more challenging than any other international market.
The Technology Leadership Dinner is organised and hosted by Bailey Fisher Executive Search in partnership with Mills & Reeve and Grant Thornton. Attendance is by invitation for CEOs and C-suite leaders of innovative growth tech companies.
Bailey Fisher is an independent executive search firm finding and hiring people who fundamentally impact the success of their businesses, by working with clients to understand their challenges and ambitions for growth.