Business relationship development and management in China

The Australian Government's White Paper on Australia in the Asian Century, released in October 2012, is based on the premise that the transformation of the Asian region into the world's economic powerhouse is not only unstoppable, it is gathering pace. Asia's extraordinary ascent has already changed the Australian economy, society and strategic environment. Within a few years, Asia will be the world's largest producer of goods and services, as well as the largest consumer market and the home of the majority of the world's middle class. The White Paper notes that thriving in the Asian century requires the Australian nation to have a clear plan to seize the economic opportunities and manage the strategic challenges that will arise, by taking a farsighted approach focused on fairness. To do so, Australians must be Asia-literate and Asia-capable, with a thorough understanding of Asian cultures and languages. These capabilities are needed to build stronger connections and partnerships across the region. Australia's commercial success in the region requires that highly innovative, competitive Australian firms and institutions develop collaborative relationships with others m the region. Australian firms need new business models and new mind-sets to operate and connect with Asian markets. Against this backdrop, this chapter discusses several important issues relating to Australian firms developing and managing their business relationships in China, in the context of urban planning, architecture, civil engineering and construction. The chapter examines the Chinese business environment, in terms of guanxi, business opportunities, risks and strategies, in a case study of the successful partnerships established to manage the 'Water Cube' for the Beijing Olympic Games in 2008.