Lap Kei Chang: Advising Chilean firms in China

“I miss China when I’m away. I really love its air of progress. In China, it seems you can achieve anything you wish,” says Lap Kei Chang. Chang, who advises Chilean firms in China, is the son of a Chinese father and Chilean mother. He decided to travel to China because he was attracted by its vast number of business opportunities. Later, Chang founded an advising firm, Mine Designe, which advises foreign companies wishing to trade in China. These days, the pioneering firm is a leader in the field. It works closely with the Chile-China Chamber of Commerce and Industry, but it is founder Kei Chang who tells us the story from the lone entrepreneur’s point of view.

Visiting the land of my father

I made my first trip to study languages, back in 1996. At the time, my paternal grandmother was still alive. She welcomed me, along with my uncle. I attended school and also had a private tutor in Chinese.

Upon arriving, I met uncles who I had not seen since childhood. I barely knew who they were. From the moment I arrived, the family never treated me as an outsider or foreigner. I simply became part of their normal activities.

They invited me to the cemetery on weekends. I was with them when they talked to the dead; when they brought food to the graveside of my ancestors (a practice which might seem very strange to Chileans). We did a lot as a family: weddings, religious festivals and other kinds of celebrations. All this… and always as just another member of the family.

I later returned to Chile in order to finish high school. Then I was off to university, where I studied engineering. After graduation, I worked at some firms and often had a couple projects of my own going. Then I received an offer from a Chilean firm that had a QA station in China. This is how my return to China began. This phase began in early 2007.

My experience in China, so far, has been wonderful. I have been able earn a living at no cost to my growth as a professional. (One can’t help but grow) in a country with so much to offer. After all, it’s the hub of the international economy.

My second journey to China

I was still single when I left, but we had been dating for five years. Andrea, who is now my wife, waited for me in Chile. The firm that hired me had promised they would pay for her flight and relocation the following year. But then the economic crisis hit and many of their projects in South America fell through. This meant that the company closed some of its plants, and relocated some employees and fired others. I decided to leave that job. I was very happy in China and Andrea had decided to join me, without any particular plans, per se. She simply arrived.

I applied to several jobs. However, as things were not panning out, I founded my own consultancy. We represent firms and provide help on legal issues, business start-ups and market research. Thus, Andrea has been a partner since the firm’s inception.

Andrea then received a scholarship with the help of AGCI (a Chilean agency which disseminates information on scholarships, etc.). The scholarship money made us increase our expectations, which led to the decision to remain in China. The award money not simply an economic boon, it also gave her life there more meaning. Andrea then ended up top in her class, so the grant was renewed for another year.

Experiences as a Chilean entrepreneur in China

For my part, I started my firm in February this year. I am the founding partner at Designe Mine. During the last six months, I have also had a working relationship with the Chile-China Chamber of Commerce and Industry. We have been cooperating on some initiatives for small and medium-scale enterprises. We tend to focus on industries that are willing to join forces with the chamber and, more importantly, sectors which can compete in the Chinese market.

For example, a small restaurant in Chile that wants to import drinking glasses can find the Chinese market to be pretty tough. However, if the chamber can get 50 restaurants and 10 hotels to draw up one purchase order, then we have real purchasing power. An order for 200,000 glasses, for instance, makes them a more attractive client. This type of client always receives a better price, too.

Chile's national image in China

Chile is a little-known country in China. It takes a lot to come in first. Our government, however, via CORFO and ProChile, has made some real efforts to improve the Chinese market’s knowledge of Chilean products and services.

There is one situation that I would like to see changed in the near future. It involves how I answer the question, “Where are you from?” For now, I tell people I am from a country that is near Brazil. It’s just easier that way. Telling someone you are from Chile is like saying you are from some tiny African nation. No one has heard of us yet. Clearly, the Chilean government is trying to remediate this issue (as quickly as possible). I find this task an especially taxing one; particularly when trying to reach the broader Chinese market.
After all, Chile is a small country. Both geographically and demographically, it is smaller than a province in China. However, I also believe can change this paradigm if we focus on the fact that Chile has been the most stable economy in South America in recent history. (We will be successful) if we promote it as representing all the best things South America has to offer.

We must also emphasize the fact that we have had zero problems with terrorism, as well as a stable and steadily-growing economy. Attributes like Easter Island are nice but not exploitable, per se. However, Chilean wine, for instance, is in nearly 20% of Chinese supermarkets. This is exposure (and a platform on which to build).

So the idea is to link together all these factors with a phrase (which places Chile in context for the Chinese market.) Something like, “We are one of the top three economies in Latin America.”

How does one do business in Asia?

As far as young Chilean professionals are concerned, if you want to work in China, head hunters are looking for three important characteristics. First, good command of English and, hopefully some Mandarin Chinese, is essential. Secondly, it is vital to demonstrate a high tolerance to frustration when interviewing with a prospective employer’s psychologists. This should be done through practical demonstrations of teamwork, like working at a non-profit charity or having been involved in some business failures. You must show you can shake off the dust and get back in the ring, because that is just everyday life in China. Thirdly, and most importantly, demonstrate a strong desire to achieve and that you know what you want out of life.

If I could say one thing to Chilean firms wishing to do business in China, it would be, “Be clear about what you want in a product or service.” I receive requests for quotes that do not even provide a detailed description of the product a firm is after. Phrases like, "I want a nice-looking, low-priced shirt,” are a waste of time, because buyers end up refusing all the samples provided by the Chinese producer.

Business opportunities

Despite the current crisis, as professionals working closely with the chamber of commerce, we see opportunities out there. We are learning how to capitalize weaknesses by identifying areas of opportunity. For example, it is possible to enter niche markets as long as we have top-quality products. This is an activity reserved to large companies. At the SME level, trade co-ops are thes best option because they help reduce a firm’s costs. However, there are also medium-scale firms which are beginning to export, too.