About doing business in China: Interview with Gabriel Yong, NUS@Shanghai

Are you planning to start a business in China, or specifically Shanghai? What is the business climate in China and what are the key industry areas that most Singaporean entrepreneurs are into? What are the things that a Singaporean entrepreneur need to look out for? It is our pleasure to have Gabriel Yong, both the general manager in NUS@Shanghai and programme director for NUS Overseas College, Shanghai, to share with us his thoughts and experience working with both Singaporean entrepreneurs and local Chinese community. He will also tell us about his experience and role as a mentor to the students studying in NUS Overseas College (Shanghai).

SGE: What made you decide to go to Shanghai? Any interesting stories to share in the process of starting NUS@Shanghai?
Gabriel: With over 10 years of working experience in sales, marketing, exhibitions, events, projects and IT in Singapore, I realised that my views are very much shaped by Singapore’s standards of what is correct and effective even though I do work with overseas clients and agents. I have always harboured the hope of working overseas and when the opportunity came for me to work with the NUS Overseas College, I jumped at the chance and chose Shanghai – China over the States. Of course, having a trusting and empowering boss like Prof Teo made the choice so much easier.

Personally, I feel that it is very challenging to work in a foreign country where I need to use my Mandarin to communicate. The time spent here in Shanghai has definitely made me appreciate the potential of one of the world’s biggest economy better and made me realised the smallness of Singapore in comparison.

Interesting story/lesson learnt – never just believe in what the guidelines and media tell you. Do your homework, talk to people and walk the street. Never ever believe that there is only one way to get things done in China. Be prepared for changes to rules and policies. They do get changed almost as soon as it is announced.

SGE: What is the function of NUS@Shanghai?
Gabriel: NUS@Shanghai is set up primarily to serve as an extension of NUS in China. We provide basic serviced office facilities like telephone lines, fax, internet connections, conference and meeting rooms for all NUS offices, staff and NUS starts ups to arrive on the 1st day and start working. NUS entities can use these facilities to interview potential students and have meetings.

NUS@Shanghai also serves as a platform to facilitate meetings with the industry and government agencies and other reliable business partners for doing business in Shanghai and the larger China. (Note: You can obtain contact information of NUS@Shanghai at the end of the post).

SGE: What are the areas/industries Singapore entrepreneurs are mostly involved in Shanghai?
Gabriel: From my understanding, a lot of the Singapore entrepreneurs are concentrated in the services and “brick and mortar” businesses in Shanghai ranging from events, advertising, consultancy, investment, headhunting, medical, food and IT services amongst others.

We have other Singapore run or Singapore MNCS involved in OEM manufacturing, finance & banks and property.

SGE: How big is the Singaporean community in Shanghai and how do they interact with each other there?
Gabriel: The official Singaporean community in Shanghai is close to 4000 though the numbers might be an additional 500 – 1000, if you include the other Singaporeans who travel frequently to Shanghai for business.

There is the official Shanghai Singapore Business Association which helps to organise formal networking and social events like the NDP dinners and festivals get-together. Amongst the other Singaporeans, it is very much informal social gathering whereby, we will meet each other for dinners/meals. You will be surprised at the number of new Singaporeans you can meet from these informal gatherings. There is also the existence of the Chinese Old Boys club and these former students come from Maris Stella, Chinese High, Catholic High and Hwa Chong.

SGE: What is the climate and pace of doing business in China?
Gabriel: The pace of doing business in China is extremely fast. Much faster than that in Singapore. Time is the essence and money here, if you are too slow, you will miss the boat. The pace of doing business is paralleled to the development in Shanghai. If you did not go to a area in Shanghai for about 3 months, you can be sure that the empty plot of land will be developed for some use, when you next visit the same area.

Shanghai is one place where you feel the pulse of capitalism very strongly. New businesses, restaurants and clubs are popping up every other day and foreigners (caucasians and others) are comparable in numbers with the local chinese.

SGE: We understand that you are also mentoring the NUS Overseas College (NOC) students in Shanghai. What do you think are the important lessons that these students have learned in their stay here in China? How do you usually help them in their stay here?
Gabriel: The most important lesson that NOC students learn from being in Shanghai is that there is a black and white way of doing things, and a large grey area when you want to do business in Shanghai. In all societies, the importance of “personal relationships” cannot be over emphasized but in China this is more pronounced. Cold selling is almost in non existence here, from my personal experience.

Survival of the fittest is also very telling in Shanghai for these students. With over 16 million people residing in Shanghai alone, one has to be very “determined” to get the service you want ranging from taxi, telecommunications, housing agents, restaurants to dealing with the government. If you are too accommodating, you are unlikely to get the things that you want and you might end up getting cheated along the way.

Back in NOC Singapore we prepare students with all the necessary literature and meetings with former alumni. In Shanghai, I give them practical pointers about what type of rent payment to negotiate on, things to avoid, clothing with regards to the changing seasons and the managing of work expectations. My common advice to NOC students “Do the small things well before people will start giving you big things to manage”. Managing of these students expectations can be a very challenging issue as many of them come to Shanghai expecting to learn how to do business in one year but there is no such book on “How to do or start a business in China” as the rules of the games in China are very fluid and dynamic.