Chinese in Germany

Around twenty boxes filled with titanium balls are put in the corner, ready for transport. This room is about twelve square meters, and it doesn’t exactly look like the office of a thriving company. And you wouldn’t guess that the goods stored here are worth about 30.000 Euros. But this Chinese, Zhang Changjia, the owner of Sulfan Fine Metal GmbH says his titanium is the best around and that business is booming even though he only launched his company last year in Cologne. So, what’s the secret of his success?

“My dad has a factory in China. He’s worked with German companies for many years. He was the one who has sent me to Germany so that I can open a business here and expand our family trade.”

Zhang is one of many Chinese who set up business in Cologne today within the framework of the cities “China Offensive.” Thanks to his dad’s contacts, he didn’t have a lot of problems accessing the German market. Yang Gangtong’s starting position was similar. His parents have a factory in China as well. They sent their son to Germany to study and set up business there. But Yang’s story was a bit more complicated. He didn’t finish his study and his application to set up business here was turned down. The second one’s been successful, and it’s been a year of hard work.

“The first year is really difficult. There’s the language barrier, and it’s very difficult to get a visa. That’s the real problem.”

Tim Glaser, the director for the Chinese-German Trade Association agrees. There are tough residency restrictions for non-EU citizens. And a company has to show it’s doing well after operating for one year. Otherwise its permit will not be extended. Glaser says, a good business plan is essential. But how well prepared are his clients?

“Well, I’d say the majority is not very well prepared although they do have a certain idea in the back of their mind. But the majority hasn’t put enough thought in their business idea and their business plan.”

Fewer than half of the Chinese Glaser works with will eventually start up their own business. Mrs. Yang is one of them. She is planning to set up a consulting office aimed at Chinese companies. Having already worked in Germany, she thinks that she has an advantage in this field. But she also hopes that she will come to grips with the differences between doing business in Germany and in China.

“There are so many little things that are different. The businessmodel, the mentality. Even the contracts and the international payment procedures, and many other things. All these are very different in China and in Germany.”

Thinking of his own experiences with his German business partners, Zhang agrees. In China you pay at least fifty percent of the price in advance. In Germany, you do it after delivery. The customers here in Germany are simply different, he says.

“We have a saying that goes like this. The American client only looks at the price. And if the price is right, everything is right. The Japanese client is different, he looks at quality. If the quality is good, then everything is good. But the German client wants Japanese quality for an American price. And that’s difficult.”

But according to Tim Glaser, there are aspects of Chinese culture that benefit to launch a company. For example, he says, Chinese are more flexible than Germans.

“Germans work from A to B. Everything is planned with a predetermined number of steps. And Germans stick to their initial plans. The Chinese also say they want to go from A to B, but then they take the first step, turn around 360 degrees, before they decide to take the next step.”

While Zhang takes up the offer of a big German company, the Mayor of Colone, Fritz Schrama, has traveled to Beijing to promote Colone as a location for doing good business. By the end of this year his initiative wants to have settled 188 Chinese companies in Cologne. 188 because 8 is a lucky number in China. So far 116 enterprises have responded to his call. So, is it possible to reach that goal? Zhang thinks it is, because he says that the Chinese have a temperament that guides them. And there’s a saying that expresses this:

“Don’t hesitate in making a decision.”

Well, this kind of driving force might well drive more and more Chinese companies to set up business in Cologne.

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