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The People’s Republic of China represents
one of the largest potential markets in the world,
and many companies are jockeying for position in
China so that when the Chinese economy grows, their
businesses will grow with China. China is a long-term
strategic investment for many companies: they may
not expect to see significant revenue for a number
of years after entering the Chinese market, but
they also feel that they can enter it now for a
much smaller investment than will be required when
the market has more direct revenue potential.
Entering the Chinese market, however, is not easy.
Chinese business practices differ considerably from
those in U.S. and European markets, and legal requirements
and regulations often seem quite murky to outsiders.
In addition, localization for China can still be
quite challenging, even though it is considerably
simpler than it was even five years ago.
The following overview will help you understand
the challenges of entering the Chinese market and
how to overcome them in order to cost-effectively
gain market share.
1. Language
Although people often speak of “Chinese,”
Chinese actually consists of a number of mutually
incomprehensible dialects. Were it not for the fact
that they share a common writing system (actually,
two writing systems, about which we’ll have
more to say in a moment), they would almost certainly
be considered separate languages. The primary language
of 70% of China’s population is Guanhua (Mandarin),
which has the most native speakers of any language
in the world. Another economically important dialect
is Yue (Cantonese), which is spoken by approximately
50,000,000 people, primarily in Guangdong Province
and Hong Kong. In addition to these two primary
dialects, there are a number of other regional dialects
whose speakers number in the tens of millions. Just
because someone speaks “Chinese” there
is no guarantee that he or she will be able to speak
to or understand another Chinese speaker, although
they will generally be able to communicate in writing.
For most companies, Guanhua (Mandarin) should be
the first localization target you work with, unless
you are primarily interested in the Hong Kong market,
in which case Yue (Cantonese) should be considered
instead. In general, unless you are localizing audio-visual
materials for specific regions of China, other dialects
are not generally targets for localization.
In addition to Chinese dialects, a number of other
languages are spoken in China, including Tibetan
(written with the Tibetan writing system, or script),
Uighur (written with Arabic script), and Mongolian
(written with the traditional Mongolian script).
These languages normally do not factor in most localization
plans, but you need to be aware of them if you are
localizing computer software since Chinese government
regulations require a certain amount of support
for these languages in computer systems.
2. Writing
The roots of Chinese writing go back at least 3000
years. At present there are two different written
forms of Chinese: Simplified and Traditional. Simplified
Chinese was developed by the Communist government
in China to improve literacy and has about 2000
characters that differ from those in the previous
“traditional” writing system. The Simplified
system is used in most of Mainland China and in
many other areas, but the Traditional writing system
is used in Taiwan, Hong Kong and Macau, and among
ethnic Chinese in Malaysia. This means that in localization
you must make a choice as to which writing system
you will use. If your goal is to reach a mainland
Mandarin-speaking audience, then Simplified Chinese
should be your choice, but if you are localizing
for Hong Kong or Taiwan, you should use Traditional
Chinese. Note that Cantonese as used in Hong Kong
requires a number of special characters used only
in that region and that these characters are not
available in most fonts.
3. Localization issues
Outside of Hong Kong, very few Chinese know English
well enough to communicate. As a result, leaving
software in English is not an option for the Chinese
market, and localization in the appropriate form
of Chinese is mandatory to enter the market. While
it is possible to release English-language software
in some non-English markets (e.g., in Scandinavia),
this will not work in China.
Computing in Chinese still remains difficult in
some instances, even though it has improved in recent
years. Many software packages on the market do not
support Chinese writing systems, including the basic
forms of a number of common desktop publishing (DTP)
packages. In some instances you must either purchase
separate copies that are enabled specifically for
Chinese, or you may have to use other software.
Increasing implementation of Unicode has simplified
support for Chinese, but many software packages
do not support Unicode. In addition, the most common
encoding for Simplified Chinese is known as GB and
if you are localizing software for China you must
support this encoding as well as Unicode.
Because of the difficulties in using Chinese software,
count on Chinese localization to take longer and
have more issues than you would encounter in localizing
into European languages. Be aware that in some cases,
it might make more sense to have a Chinese subsidiary
or partner produce documents or content specifically
for the Chinese market rather than localizing existing
English-language documents, particularly if the
materials have to do with marketing or sales.
4. Legal issues
A frequent complaint from non-Chinese businesspeople
is that the Chinese legal system is impossible to
navigate and is unclear. Whether a Chinese businessperson
would agree is another matter, but Chinese legal
requirements are unusually complex for foreigners.
Because of this, if you are entering into a legal
contract or setting up a Chinese office, it is best
to hire a Chinese lawyer with experience in dealing
with foreign clients. Hong Kong is a common location
to find such legal expertise because it has long
served as a gateway for foreign investment in China.
Another issue that must be considered in China
is the status of Taiwan and Tibet. The official
position of both the current Mainland Chinese and
Taiwanese governments is that there is only one
China, but they disagree concerning which government
is the legitimate government of China. In the case
of Tibet, many outsiders consider Tibet a separate
country occupied by the Chinese government, but
most Chinese (including those in Taiwan) consider
Tibet to be an integral part of China. Because these
issues are so politically sensitive, it is best
to avoid dealing with them. If you must deal with
them, the mainland Chinese government has been known
to remove products from market that do not support
official government positions. If you have Chinese
legal counsel and you must deal with these topics
(for instance, if you are localizing an atlas or
encyclopedia), check with your legal counsel before
addressing these issues for the Chinese market.
Finally, be aware that the Chinese government still
exercises considerable powers to censor content
in China, and that political, religious and cultural
content is subject to government review and control.
If you are going to be localizing content that touches
on any of these topics, make sure that you will
meet Chinese censorship guidelines before you release
your products. While censorship will not affect
many (or even most) products, do not assume that
your product will not have any problems until you
have verified this with Chinese legal experts.
5. Conclusion
There are many other issues that can be considered
when entering China, such as issues of color and
the cultural value of numbers: your qualified localization
service provider should be able to advise you on
these issues and can help guide you through the
issues involved in appropriately localizing materials
for China. Localization companies with experience
in China will be able to help you prepare your materials
for effective localization and can suggest strategies
to reduce costs and improve quality.
While entering the Chinese market may seem (and
often is) quite complex, the potential rewards in
one of the world’s fastest growing economies
can be quite compelling. By taking time to make
sure you are localizing for China in the right way,
you can reduce costs in the long run and build market
share effectively.
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