Driving to work today I heard a news item about the Chinese stock market, and the fact that it had taken a turn for the worse.  This news sparked fears that the strict capital controls implemented by China’s Government were not enough to stop the country’s stock market crash.

China’s financial tremors have ramifications for many other economies, including Australia. So what do we have to look forward to as our largest trading partner endures financial wrath? Should we run for cover or does this situation need a different approach?

It reminds me of the analogy of the two shoe salesmen who travelled to Ethiopia. The first salesman wrote back to HQ saying ‘there are no prospects in this country as no one wears shoes’. The second salesman wrote back saying ‘this country has huge potential as no one currently wears shoes’. In short, one salesman could see problems while the other salesman sees the opportunities.

Doing business with China right now is a little bit like the analogy. Despite the current disturbance in economic growth, China is still home to many of the world’s emerging super rich. If China itself cannot offer a strong ROI for their capital they will look elsewhere … And, it’s entirely possible that Australia’s highly regulated financial institutions may be seen as ‘just the safe haven’ required.

It is worth remembering that Chinese people have lived through centuries of turbulence – both financial and physical. They have become the masters of resilience and the conquerors of adversity. The current financial disturbance is a small blip in China’s long-term strategy.

To maximise the potential China can offer Australia as a trading partner, Australian businesses must too have a long-term strategy towards China. Chinese customers appreciate consistency through both good and challenging times.

Smart businesses will continue to invest in China and learn about China. This includes learning the language and understanding the business culture, and this will hold them in good stead in the long term and they will be well positioned to prosper when the economy rises again.

Now is not the time to fight shy. In fact, by contrast Australian companies – especially in the financial and service sectors – still have many opportunities to seize when it comes to considering doing business with China.