10 Minute Text

‘Beijing has to prove it’: A European corporate leader on how doing business in China has changed

Updated May 18, 2023, 5:27am EDT

Joerg Wuttke has been doing business in China for decades, first visiting in 1982 before moving there in 1996, eventually becoming the president of the EU Chamber of Commerce in China, a position he holds for another week. We talked about how doing business in China has changed, and what companies thinking about investing in the country should know.

Prashant Rao said:

Hi Joerg, thanks for doing this.

Prashant Rao said:

How are you?

Joerg Wuttke said:

Jet lagged in Shenzhen, but meeting friends keeps me alert.

Prashant Rao said:

All part of the travels before you finish your time as head of the chamber?

Joerg Wuttke said:

Rejuvenation tour after being stuck in Beijing all of 2022, and certainly high demand for the president of the eu chamber to meet members and officials, demanding but rewarding.

Prashant Rao said:

Makes sense. We ask all the people we text with to send us a selfie — can you send one over?

Joerg Wuttke said:

Prashant Rao said:

Nice

Prashant Rao said:

Let’s get to it! You’ve been head of the EU Chamber of Commerce in China since 2019, but you’ve also been in China since the 1990s. What’s been the highlight of that time?

Joerg Wuttke said:

I came first time in 1982, a time of poverty yet great curiosity. I fell in love with the resilience and optimism of the Chinese. My highlight was my engagement with former premier Zhu Rongji in 1998-2003, I admire his courage and intelligence.

Prashant Rao said:

But it feels like a much darker place from a business climate point-of-view in more recent years. Is that right?

Prashant Rao said:

Beijing says its open for business, but it doesn’t feel like it.

Joerg Wuttke said:

Covid restrictions sapped this marvelous country of its trademark can do spirit.

Joerg Wuttke said:

Beijing has to prove it. No more Sunday speeches, walk the talk.

Prashant Rao said:

Last question: What would be your advice to a Western company thinking about investing (or increasing its investments) in China? What should they watch out for? Are the opportunities still worth the risks?

Joerg Wuttke said:

Join the EU chamber for a reality check :)))

Joerg Wuttke said:

But serious, look at your specific competitive advantages, benchmark with chjnese competitors , and than decide if you want to join the rat race here.

Joerg Wuttke said:

Chinese companies are very fast in adopting new technologies and then scale up. China speed.

Joerg Wuttke said:

Yet better to compete here before they come to your traditional markets. If you are not at the table you shall be on their menu.

Prashant Rao said:

Fascinating points, that’s great advice.

Prashant Rao said:

Thanks for the time, and hope you enjoy Shenzhen!

Joerg Wuttke said:

Cheers j