UCBC focuses on
partnering strategies in China

"It's all about networking," said David Thorsen, PDI World Group LLC Chief Operating Officer, when asked about how his company manages to find business in China.

On April 2, 2008, U.S. China Business Connection invited PDI World Group to share their successes, difficulties and lessons learned from working with abroad clients in China.

PDI World Group is a worldwide building industry consortium, based in Minneapolis. The company and its affiliates specialize in architecture; landscape architecture; planning; interior design; structural, mechanical, electrical and civil engineering; and construction management.

Thorsen presented a number of design and construction projects in China which the company has helped with and some lessons learned from each.

A number of projects presented that day are located in Dalian, China, in the northeastern region of the country. Thorsen showed large design projects such as Fortune Land, a large city region consisting of multi-use buildings and housing. The company also designed the official Olympic Village in Beijing.

Despite all of the company's success, Thorsen also shared the downsides of international business -- clients who neglect to pay for work. Because of the distance between PDI's headquarters and its international clients, it presents a difficult challenge of collecting fees when the payment is not made. PDI's Suzhou Entertainment District project, for instance, was an elaborate construction in Suzhou to design a recreation area. The design was made and presented with the city approving the design. Only, in the end, PDI was never paid for their designing efforts.

A best practice to help prevent such instances is to make sure that both businesses are clear with each other's intent. Also, both sides need to remain in constant communication throughout the entire project.

"It is very important to get to know the clients you will be dealing with.　 Establish a rapport with them," Thorsen said. "Make sure you have good communications – both to China, and communications in return.　 Make sure you have a thorough contract that is fully understood by both parties.　 Keep the client informed as to the progress of the project."

It is clear that China's economic development has brought about opportunities for American businesses. For those businesses who want to venture into the Chinese market, Thorsen advises that these companies make sure they take proper precautions before entering a business agreement.

"Working in China can be very rewarding.　 The Chinese people are wonderful, and very friendly.　 However, do your due diligence in terms of the client's ability to pay for services. Also, make sure that what is agreed to prior to providing services is actually awarded to you.　 Make sure you establish good relationships with other Chinese who may be able to assist you in the event of perceived problems.　 Lastly, make sure that you can stop the project and resolve the issues at hand before those issues become so large that it causes economical hardship on your business."