It’s impossible to escape recent news headlines highlighting China’s economic woes. And yes, there’s good reason for Australian businesses to be cautious. But while some might see this as an excuse to ‘down tools and head elsewhere’, it will be those businesses that look beyond the current crisis, and which think carefully about contingency planning and revised strategies, that will reap benefits in the long term.

As China steadies itself, Australia would be fool hardy to isolate itself from its Asian neighbours. Foreign companies settled and doing business in China need to use this time to refocus and regroup. Doing business with China is complex. Pulling out at this point in time, would be a mistake. And here are three valid reasons why:

• Consistency is key

  Many companies make the mistake of setting up offices in China or other parts of South East Asia only to realise that growth is slow or profits are not as good as first expected. Disappointed, these companies close their regional offices and then, when the economy shows strong signs of growth and vitality, they try to reopen again. The problem is, by this time the damage is done. The company has already been ‘tarnished’ with the reputation of being unstable or inconsistent, and second time around it will find it even harder to get a foothold in the market. Asian relationships are built on trust and loyalty and these relationships also take time to build for they are not taken lightly. They are cultivated for the long term. Companies need to consider carefully – ensuring that the financial needs of the business can be balanced with a strategy that’s designed to ensure that the company can mature and enjoy long term partnerships with its Asian stakeholders and it’s local Asian community.

• Relationships are very powerful

  Most successful businessmen know the importance of a strong network. However, in many Asian countries the role of relationships in business is taken to a far greater extreme. Professor Michael A. Witt writes about this in his blog Ten Principles for doing business in China when he says “Chinese society is collectivist in that individuals identify with an “in-group” consisting of family, clan, and friends.” To explain this more plainly, the Chinese system of “guanxi” is still highly influential in China’s business culture. Guanxi is not easily translated into English but basically means your connections and kinship are paramount. Without any guanxi there is little hope of an outside company profiting from an emerging super-power. Although known by other names, the principle of ‘relationships first business later’ is prevalent in most of the Asia Pacific region. Success for the newcomer starts with forming strong relationships. Business success will follow. Business Insider also published an article on this concept and the impact it can have on international business relationships when it is not properly understood.

• The meaning of time

  Many Western societies are in a rush – consumers often operate that this pace too – we want everything done yesterday. In Asian culture time has more emphasis, and it is considered highly important to take time and do things carefully, mindfully, deliberately, rather than just for the sake of ‘getting it done’. If you’re doing business in Asia, you might be surprised to know that these cultures are not in a rush to ‘close the deal’ and will take their time to consider many aspects of a relationships before they do. If your normal ‘purchase cycle’ or decision-making cycle is 3-6 months for example, then you can expect to double this time when you’re dealing with Asians. Patience is a great asset – it is revered and rewarded.

During this time of tumbling stock markets and business uncertainty in China, those Australian businesses that can ‘sit tight’ and demonstrate consistency, loyalty, and a commitment to long term will reap the benefits when the economy starts to grow again.

It’s important, at times like this, to remember this particular Chinese proverb: Bu pa lu chang zhi pa zhi duan. Translated this means: Do not be afraid of a long road to success, only be afraid of a shortage of ambition.