Q: How do I start looking for work in China?

A: First, you must understand that the Chinese construction market is not the same as many other international construction markets. Significant engineering and construction capabilities already exist in the Chinese domestic market. (Remember, the Great Wall was built centuries before Western construction firms decided to target the Chinese market). Nevertheless, significant opportunities for foreign contractors exist.

Initially, following major international investors into China (such as pharmaceutical or manufacturer companies) as part of their contractor team is the best entrée into the market. That way, you minimize the initial problems of locating opportunities and maximize the time necessary to learn the local market. In addition, large infrastructure projects funded by international financiers or quasi-government sources, e.g. World Bank, are generally open to foreign contractors. In either situation, the prospects for long-term success are most enhanced through partnering or joint venturing with a local Chinese firm.

Unlike what is often typical in the U.S., long-term relationships are not established with Chinese firms based upon initial meetings and impressions. You must invest time and effort to cultivate the trust relationship that is necessary for long-term success. A relationship worth having is worth investing the time to build. In China, that relationship is often referred to as "guanxi" (pronounced "gwan-shee"). It signifies a deep and true friendship that will endure. European and other international contractors who have been active in China have invested in "guanxi." To be part of the explosion in China is to be, in effect, part Chinese. While the Chinese want relationships with American companies, they also require respect for their culture, respect for their ability to exist and thrive without the foreign partner and a sense of sincerity in the relationship. Your decision to enter the market must, therefore, be a long-term decision worth investing the time and resources in to cultivate the relationships that will make for long term success.

Thanks to George J. Pierson, P.E., Esq., who is a partner of Peckar & Abramson, P.C., a New Jersey-based construction law firm. He is director of the firm's International Construction Practice Group. His expertise includes all aspects of domestic and international construction and contract law. Previously, he was an Executive Vice President of Kvaerner, the international engineering and construction company. His e-mail is gpierson@pecklaw.com.

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