The China business opportunity.

It's not just there for the taking, of course. Consider the logistics challenges of this vast country. Even in the affluent southern and coastal cities, distribution systems and retail chains are still modernizing. Managing supply chains is testing. Finding, training and retaining good staff is an ongoing problem. Chinese product quality is coming under increasing scrutiny, both domestically and abroad, and some business practices remain questionable by international standards. China ranked 72 out of 163 on the 2007 Transparency International Corruption Perception Index.

Much has been written about the importance of business contacts and good relationships with national and local government officials. The clichés about the importance of government and business connections are true – although guanxi is now just one of the elements of success, which also include technology, management best practices, powerful branding and marketing, and managing relationships with communities and the media.