Seeing China for what it really is...
I am sure you have been told many times that the Chinese will do whatever it takes to avoid confrontation in business negotiations, is incapable of saying no and will run circles around the simplest of question marks that could easily have been settled quickly with a simple NO.
Well, in my experience, the Chinese are more than capable at saying no, and the further north you find yourself in China the easier it gets…
Seeing China for what it really is...
Thinking of establishing a Foreign Invested Enterprise (FIE) in China? Well, take a step back and think again… First you should answer this question: “What is your exit strategy?”
Simply put, as part of your establishment process, you should also identify the possible exit scenarios/strategies and write them into the business plan that accompanies the business license application.
Seeing China for what it really is...
Trademark or not to trademark is a reoccurring question in China… Or more to the point, when to file for trademark registration?
To make everything as simple as possible for yourself and your company, do not waste time thinking of this question… Just spend the money and seek trademark registration immediately. Chinese law is very peculiar in this respect…
Seeing China for what it really is...
Last week I was forwarded an article (sales pitch actually) from a Singaporean consulting firm in Shanghai that makes a living providing “advise” to unsuspecting foreigners in China… The company shall remain anonymous, as I do not want to be sued for telling it as it is, but these guys are so full of it that it is hard to hold back.
They started by comparing “the cultivation of traditional guanxi” with pure corruption, and then went on to talk about how this is changing…
Seeing China for what it really is...
Why does it seem like everyone coming to China is in a tremendous hurry? Why do they throw caution to the wind and push forward with business deals they would not dream of signing off on back home?
Are they really so desperate to find a new supplier or break into the Chinese market that all business sense goes out the window?
Seeing China for what it really is...
Firstly, it is not unique to China… Everyone does the same thing all over the world, but there it is called it lobbying, doing business with an old classmate, serving on boards of friends’ companies… It is all the same thing… A network established for the enrichment of the network and its members, but in China it sometimes presents itself in a more ugly way and to the detriment of gullible foreigners.
If someone tells you they have great guanxi and can help you make your business deal I have only one advice:
Seeing China for what it really is...
There is a myth being propagated that face is a big thing in business in China (actually all over East Asia), but it comes in many shapes and forms and is definitely not as “Neanderthalistic” as one would have you believe.
Admittedly there are regional differences, and most definitely differences between tier 1 cities and some village in a mountain valley, but it can always be summed up quite easily…