Realism and patience are the key words needed when dealing with China.
You cannot get too excited about going in to this market. You need first to do
extensive market research. Fifteen years ago, this was extremely important,
it still the case, and will be the case fifteen years from now. You have to
realize that your China adventure will be a learning experience. But it can be
a very rewarding one if you're in the right market at the right time. But that's
just smart business.

Things are easing up rapidly, but even simple things can still be difficult.
Getting licenses, hiring employees and paying taxes can generate
difficulties. Many foreign businesspeople who have worked in China believe
that success is usually the result of dogged persistence and finding
cooperative officials. Even when you think you’ve got everything all agreed to
on paper, things can go awry when agreements are put into practice. Your Chinese joint-venture partner may change the terms of the agreement once business has commenced. Your copyrights, patents and trademarks may be pirated.

Remember that the Chinese do business on the basis of mutual trust and personal connection and pay much less attention to contractual terms or legislation.

Your Chinese employees may walk out and start working for a new company just across the street producing exactly the same goods as you do. With China joining the WTO, the land should become less of a business minefield. Anyone thinking of doing serious business in China is advised to do a lot of preliminary research. In particular, talk to other foreigners who are already doing business in China. Alternatively, approach a firm of business consultants for advice.

If you come to do business in China, you have to learn the Chinese ways of doing things.
They include:

Flexibility To survive, the Chinese have learned to be flexible. Governments change. Laws and regulations change. Officials change. As foreigners doing business in China, you need to learn to adjust yourselves to the changing situations as the Chinese do.

Patience In China you must be patient. You cannot move as fast as you want. Things do not happen overnight. For instance, choosing a joint venture partner in China is like searching for a partner for a marriage. You have to choose the right person and try to minimize the likelihood of divorce. This takes time.

Guanxi Relationships are important everywhere, but they are especially important in China. You have to establish good relationships with the governments at both central and local levels. This is because both the central and local governments have their own powers and wishes.

Respect If you come to China with an arrogant manner, you are lost. Regardless of your ownership percentage, you should try to treat your joint venture partners as equals. In order to succeed in China, you need to understand the culture and history that have brought China to where it is today. The Chinese are proud of their history and you in turn have to respect it. However, that does not mean that you have to change yourselves. Never try to compare—better or worse—try to recognize differences and leave it at that.