Two years ago, LanzaTech co-founder Sean Simpson made his first business trip to China.
Today his cleantech company has partnerships with five global Fortune 500 companies in China, including a joint-venture with Baosteel and a demonstration facility at one of the Chinese state-owned iron and steel company’s Shanghai steel mills.
That is the speed with which your business can take off once you climb on board the China phenomenon, Simpson says.
It’s not a quick thing. One dinner is not going to do it. It’s more about time rather than throwing money at it. Relationships over time are important.LanzaTech uses a unique microbe to turn gas waste into ethanol. The company’s research and development arm is in Auckland and it has offices in Shanghai and Chicago.
LanzaTech’s swift entry to the Chinese market has necessitated a swift education in Chinese business. Simpson says the first rule is to focus on building relationships rather than talking money.
“It’s not a quick thing. One dinner is not going to do it. It’s more about time rather than throwing money at it. Relationships built over time are important.”
Many Kiwi businesses are afraid of losing their intellectual property (IP) in China. Simpson says retaining your IP should be the bottom line of any agreement.
“If part of the deal is to own the IP, it’s the wrong deal, it’s the wrong partner. Get out.”
Despite the hefty time investment to build relationships, and the need to mitigate the potential for IP infringement, Simpson says businesses considering entering China should go for it.
“The people who are contemplating going there have got balls. It isn’t a scary place if you take precautions. Avoid the negativity: China is the future. We’ve got to look East.”
