Seeing China for what it really is...
Mostly everyone you come across in China will tell you stories of how important both face and relationships are… As it says in the headline to this post, overestimate it at your own peril. I will have to deal with one at a time as they are not really connected, but “the giving of face” is also important when building relationships, so they kind of overlap too…
Seeing China for what it really is...
Since the earliest days of China’s “open door” policy, savvy (and not so savvy) business people have been writing books about China, how to do business here but perhaps more importantly, how not to do business in China… Most of these books are however valueless, as many are either just copies of other peoples work or more often outdated by the time they hit the shelf because of the fast pace the society in general is evolving in the major Chinese cities.
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...
It’s been a while since I wrote on my blog, so I thought I would start off with something easy: People being fooled into thinking that a signed agreement means that everything is ready to make some money in China.
A while back there was an article in The Sidney Morning Herald that caught the attention of a colleague and he promptly forwarded it to me…
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...
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: