Seeing China for what it really is...
Most consultants and advisers you come across when you dabble in doing business in China will tell you to forget everything you know and not expect that China will be anything like doing business back home. Now there is a half truth that needs some explanation before one can say that this is a correct statement…
Seeing China for what it really is...
The other day I had a discussion with someone (the person shall remain nameless) about their trademarking strategy in China. This person came to me a while back (after reading my blog) and asked specifically if I could recommend someone to help them with trademark filing in China. I did… I even got a “non-raping” quote from one of the top law firms in Beijing for them.
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...
How many times have someone told you that they know how to do business in China and tried to sell some consulting type service in the process?
I suggest you ask them where in China they mean… There is a vast difference in doing business in different regions in China, between 1st tier, 2nd tier and 3rd tier cities and even within the larger cities there are differences.
Seeing China for what it really is...
There seem to be a special storage facility in all Chinese airports where foreign business people coming to China gets to check-in their brains and leave it in storage for the extent of the trip.
Why would you sign a contract in Chinese under Chinese law with a Chinese? As a foreign company there is no reason WHAT SO EVER to accept a Chinese contract, Chinese contract law or Chinese legal jurisdiction – be a little smarter…