By Nicholas Compton
N. Admasu was just 18 years old when he first came to China in 2002. When the flight from his home in Addis Ababa, Ethiopia, touched down on the Beijing tarmac, he could barely say ni hao, but that didnt matter. Fresh out of high school and full of self-confidence, he was determined to carve a niche for himself in the trade business between China and Ethiopia,
More than a decade later, and Admasu, now 29, has realized that goal - establishing for himself a lucrative career as an intermediary in trade between the two countries. With 11 years of experience sourcing and shipping products as diverse as printer parts and raw materials from China to clients in Ethiopia, Admasu has amassed a wealth of practical knowledge about doing business in China. He shared with ChinAfrica the problems hes faced doing China business, advice hed give to those thinking about entering the China market, and why he thinks China-Africa trade is a win-win for both parties.
ChinAfrica: How did you first become interested in China?
N. Admasu: I was interested in China because my father (also a trader) did some business there, as well as some family friends. I decided to go right after high school graduation, directly to Beijing, on a tourist visa. For two weeks I was there, studying the market, and suppliers, and thinking of how I could do business. That time I spent time buying electronics in Zhongguancun and the Pearl Market, to send back to Ethiopia. My friends told me I should spend a year learning Chinese before going into business, but I didnt have the time, so I went in knowing very little, and I gradually learned to speak and listen.
Why did you decide to focus on electronics trade?
At the time (2002), Ethiopia was just starting to get those technology products like computers and printers. They were just starting to gain popularity. So I could source those products, and spare parts in China and send back to clients in Ethiopia who needed them... at the time, in Beijing, there were just a few (Ethiopian traders) in Beijing. There are more and more, but being here for this long has helped me establish ties.
Why did you decide to settle in Beijing?
If I can say it without sounding too boastful, Beijing is like my second home. I love this city. First, security comes first, its number one, and Beijing is one of the safest cities there is. Also the cost of living, food, transportation, all is so cheap. Cheaper than other cities, and even some rural areas in China, Ive found. If I need to go to Shanghai or Guangzhou, I can just get on a train and be there with no problem. So in a sense, you could say Beijing is centrally located. I wouldnt want to live anywhere else.
What has been most difficult of doing business in China?
The language barrier, although I learned to speak and listen, Im still not good with written Chinese. Thats the first thing. Then there are sometimes delays from the suppliers, or the quality of the products they end up giving you is not what they have agreed to. Thats why inspecting factories and the goods is so important... but Im still doing very well, growing every year, and my hope is to get bigger and bigger.
What does your business consist of?
Clients in Ethiopia (from single individuals to large corporations) approach me and tell me what they need, usually IT products. I use Alibaba (mostly) to find suppliers in China, most in Zhejiang and Guangdong Province. After checking the reliability of the supplier and their goods, I quote the price to clients, and when they agree, we sign an agreement. They send me a down payment, and we ship or air cargo the goods... I have contacts, agents, at the major ports in China, and the ports of destination who help me through the logistics of the shipment. Once you purchase the goods, getting them to Ethiopia is not a problem.
What advice would you give for a businessman thinking of entering the Chinese market?
First, I would tell them, “come!” The market is big. But, when doing business you need to have a target. You need to know what the market in your country needs, and you cant just guess. You need to do pricing first, and check quality, where will you buy, plus consider the time it will take (for shipment)...One of the keys of doing business here is that you need to have guanxi (close personal relations), and you need to have good communication skills. Thats what Ive found in China, and in life. You must be able to communicate.
What do you like most about China?
The working culture. I mean, how hard Chinese work. Its amazing, you know, when they work, they work hard, and when they play, they play hard. Its something that I never expected.
What most surprised you about China?
When I came here everyone told me how it was still a developing country. I was told it wasnt developed. But to see some of the markets and the factories, I was really impressed. It was much more developed than I expected.
How does China-Africa trade help your country?
If we didnt get the goods we do from China, where would we get them? I mean theyre the goods we need, and at a reasonable price. If you go into a supermarket in Adis Ababa, you will see many imported goods coming from China. So I would say this business, this trade, is good for us. CA