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?
Back home, most business people would take their time to develop a new business relationship, especially as a buyer… So why the headlong rush into disaster so often seen in China?
Something is seriously wrong if you come to China and feel a need to sign an agreement before you leave again… To make it very clear: Although some Chinese business people seem friendly and open, they are not your friends, they are calculating business people, and if you do not take the time required to negotiate a sound business deal, you will be rogered…
I have come across several businesses from around the world that have massive problems with their Chinese suppliers, and the story always repeats itself: We were told by our Hong Kong based agent (that we found online and have had ZERO previous experience with btw.) that: “This is how things are done in China.”
More on that later, but for now… Take your time to negotiate a sound business deal and travel to China several times if necessary, both before and during negotiations and contract fulfillment… If the business arrangement does not make sense back home, it does not make sense in China either… You just got screwed…
Most of the time when I am confronted with such a scenario I end up laughing in their face and shaking my head as I am walking away…
Or when the business goal of the other vendor is obviously at odds with the ethos and philosophy of your product. Talking about entering into the market place here. Through a bad decision or action, you can not only end up in a and deal, but forever taint and handicap the product or family of products in China.
One very large and very famous tech company took myself and some other industry associates out to lunch back in 2002. He quipped – that he would rather buy up some of the contracts done by other foreign companies because they have allowed – through the poor contracts – the local Chinese partner to completely destroy the reputation of a whole family of products. Thus making it impossible for them to compete – even with a sound contract.