China Expert

By Ron Cune

Just like in other countries, being dependent on one relation is also not advisable in China. Whether it concerns a client or supplier, a distorted relationship will often cause pressure. This will result in a weak negotiation position which, in some situations, will cost you dearly.

Satisfaction with the current situation should not be an excuse to ignore other purchasing channels.

Allowing assignments to circulate within a piggy bank of suppliers with the same abilities will provide greater flexibility to anticipate economic and regional developments. Read the rest of “Concentrated Distribution” or post a comment

By Andrew Hupert

We’re getting a little more visibility into the nature of this crisis, and the good news is that we are starting to understand the bad news. China isn’t going to be a safe haven – though it may not be battered as badly as the US and Europe.

But just because China will be less damaged, it doesn’t mean that all you have to do is wait for things to become ‘normal’ again after Chinese New Year. Your business model is going to change over the next few quarters. The only choice you have is about what will drive those changes – you, or the market.

This is one of those times when not deciding is a decision – and a poor one. Read the rest of “What will your China business look like in 18 months?” or post a comment

By Frank Mulligan

Brrr! Even though the sun is shining, it’s cold. It’s always cold when the economy slows, and it’s not just psychological.

Hiring freezes are in place in many of the world’s leading companies, and on a world-wide basis. This means that corporate staffers and line managers cannot hire anyone for a fixed period of time, or until an open-ended freeze is cancelled.

Here in China, where we expect the economy to ’slowdown’ to ‘only’ 8% growth next year, there has always been a way of getting around the freeze. But right now it’s getting harder and harder to keep the ice from forming. Read the rest of “Hiring Freezes” or post a comment

By James Hudson

I have an American friend who recently joined a Chinese PR firm. When I asked him how it was going he mentioned that the experience was ‘totally different’ to working for a PR company in the west. Although this is expected, he went on to talk about swipe cards that recorded his times of entry into the office and how the company would fine him half a day’s salary if his swipe card indicated he was just one minute late. This, along with being allocated new tasks as late as 8pm to finish ‘as soon as possible’, ultimately led him to feel dissatisfied with the company and resulted in a complete lack of interest in how the company operated.

Managers of Chinese companies frequently ask me why many of their employees show such a lack of commitment to their companies’ operations. Read the rest of “Want Committed Employees? Learn to Trust Them.” or post a comment

By Patrick O. Courtois

I tend to receive a recurring misconception about the Chinese labor market from overseas-based clients. This misunderstanding primarily affects overseas-designed provisional staffing budgets as well as the perceived value of quality of China-based recruitment agencies. In short, agencies are perceived to attempt inflating candidate packages for higher fees. While some rogue agencies do, there is a distinctive trend that the cost of Chinese talent is catching up with international benchmarks.

China is an emerging Dragon, Shanghai, a crouching tiger…

China is an emerging and developing economy. At least, it is its official status according to the International Monetary Fund’s World Economic Outlook Report, dated April 2008 Read the rest of “No Free Lunch in China” or post a comment