Understanding 'the rules' is key to success in China

Liam Casey, chief executive of Shenzhen-based PCH China Solutions, is bullish on China

Liam Casey, chief executive of Shenzhen-based PCH China Solutions, is bullish on China. He's a great advocate for the benefits of investing in China and the business opportunities it offers.

"Thinking there is red tape and that it's difficult here is a big mistake," says the Corkman, whose company is based in the southern boomtown of Shenzhen, just across the border from Hong Kong, where he has been building up his position since 1996 as Ireland's largest exporter out of China.

Bullish certainly does not mean rash, and Casey insists that anyone coming into the China market better not be thinking short-term or hands-off.

"Take a long-term approach. You can't do it by keyhole management, you've got to be here and committed," he says.

READ MORE

"Know the difference between being present in the market and being committed.

"It's like the plate of bacon and eggs - the hen is contributing through the eggs, but the pig is committed!"

PCH sources low-priced components in China for some of the world's biggest IT and telecoms companies and has registered strong growth every year since it started.

PCH has close to 1,000 employees working in offices in the United States, Singapore, Hong Kong, Taiwan and Brazil.

And, of course, his beloved Cork, where the company is based. When Casey talks about the People's Republic, you have to check whether he means China or Cork.

There are 30 engineers working in the Shenzhen office, part of a multinational team that includes 16 Irish people.

PCH is currently doing final assembly and shipping 1,000 notebook computers a day for one of the top three Japanese companies, distributing them through China, Taiwan, Hong Kong and Australia.

It's a long way from one of Casey's earliest jobs as general manager of Tricot Marine on Grafton Street in the early 1990s, before he left the clothes shop to set up Meadows and Byrne with Freda Hayes in 1993.

He gained experience in the electronics business in the US, before coming back to Ireland where he set up PCH in Cork. He first came to Taiwan, then China, in 1996 trying to source components.

PCH sees itself as a firm that helps big companies to take advantage of the opportunities that China can give, developing customised supply chain solutions for clients around the world.

"The speed is huge here," says Casey, who is endlessly enthusiastic about the energy of the people and describes China is an extremely pro-business environment.

Among the products it provides, PCH makes cables, connectors, printed circuit boards as well as packaging and components for some of the world's biggest brands, including three of the top five PC manufacturers and a raft of blue-chip telecommunications companies. The majority of PCH's clients are based in the US, dotted around the country and on the West Coast, and Japan.

It manages the end-to-end supply chain for Better Energy Systems, the company behind the Solio portable solar power charger.

"Put simply, PCH understands the business and quality requirements of the West, while at the same time can effectively manage the day to day complexities of a Chinese supply chain," says Christopher Hornor, chief executive of Better Energy Systems.

Sales are expected to more than double this year to over $200 million (€156.3 million).

While Casey keeps profit figures to himself, he insists it's a high-volume, low-margin business. Sourcing the right factories in China has become more important than ever.

Corporate Social Responsibility (CSR), a code of conduct for how firms behave in these kind of low-cost environments, has become a major issue for multinationals.

As far as doing business in China goes, Casey keeps the rules simple: "Get a good consultancy firm, get them to set up companies for you and then you can focus on your expertise in making or selling. Get the right help from people like Enterprise Ireland," he says.

"In 1996 we took our time. A company coming now might do it differently, we've made the mistakes and know what to do.

"Just make sure you understand the rules," he says.

Clifford Coonan

Clifford Coonan

Clifford Coonan, an Irish Times contributor, spent 15 years reporting from Beijing