Recruit young people

One of his smartest moves was steering away from hiring managers from China's creaky state-owned enterprises. Instead, he recruited young people just out of school and trained them. Most are still with him.

Pay well

EHC has doubled its wage rates since opening in China, with the average hitting about 1,500 renminbi a month ($218). A worker fresh off the street is paid in the range of 750 renminbi, but wages can rise quickly as the person is trained and gains seniority.

Invest in training

EHC spends a lot of time on training, which is three times more intensive than in Germany. In past years, it experienced a steady turnover of middle managers, but not so much of labourers. But now worker defections are becoming more of an issue as new factories flock to Malu.

Set up a local supply chain

The toughest thing has been setting up a supply chain for a product that is very new to China. In North America and Europe, he could go to specialized shops to custom mix his rubber formula. Those shops don't exist in China, and he had to ask companies supplying rubber for other uses to set aside some mixing capacity. At times, he has considered setting up his own supply chain. "It's costly if your Chinese supplier screws up and you have to air-freight North American materials here," he says.

Innovate

EHC has designed handrails that display advertising, and developed thermoplastic polymer rails that are shinier, sleeker and more durable than the rubber kind.

You can fight corruption

There will be copying of processes, but Mr. Ball doesn't intend to make it easy. And he sees progress in China, particularly in enforcing employment contracts. EHC recently sued a former manager for violating a non-compete clause by joining a rival firm. The courts found in favour of EHC.

The company insists on anti-corruption agreements with its suppliers, who must agree that the price that they bill the company is the best available and that there are no kickbacks.

Learn to be tolerant

Mr. Ball believes he adjusted well to China because he came here as a globally seasoned manager in his mid-50s -- and had learned to be tolerant. "People come here and expect the same as they've had, but it isn't," he warns. He shows no signs of flagging enthusiasm, as he embarks on a new diversification push in China. "I think we have a pretty good shot at doubling our business over the next five years."