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September 4th, 2007 by China Business Success Stories
By World Tax Inc.
Business culture in China is significantly different from Western business culture. Familiarity with the Chinese business ethic can help you when doing business with the Chinese. It is advisable to pay attention to the following tips:
• A short and light, not firm, handshake is the customary start to a business meeting. It is advisable to start the meeting with ’small talk’ and only after that to pass on to business matters. During the meeting it is customary to address your Chinese colleagues with the title that signifies their status: "Professor Chen" or "Mr. Chen" or Miss Chen" with the name that follows the title being the surname and not a first name.
• Business cards should be exchanged at the beginning of a business meeting. Take care before the meeting to have an adequate supply of business cards - at least 30. The Chinese appreciate it when one side of the business card presented is in Chinese. It is very important that your business card is Read the rest of “China Business Practice and Business Etiquette Tips” or post a comment
September 3rd, 2007 by China Business Success Stories
By Marian Stetson-Rodriguez and A. David Wan
SCENARIO: Deal or No Deal - At the end of his week-long visit in Beijing, his third in six months, Peter, a British company director, was frustrated by a lack of progress in the joint venture negotiations with the Chinese. A meeting scheduled for the last day of his stay had just been abruptly canceled and no reason was given. The host sent a car to take the visitors to tour the Great Wall for the day instead. But a farewell dinner that night was re-confirmed! Peter was furious and nervous that the deal was going south. He declined the offer to visit the Great Wall and worked with his team and consultant to try to salvage the deal. He was in no mood for another “relationship-building” ten-course banquet (yan hui) and to tough out rounds of toasting (gan bei) downing the fiery Chinese white wine (bai jiu). At the insistence of the consultant, Peter reluctantly went to the dinner, with a long face. Yet he left Beijing the next day a happy man, with a deal in hand (a signed letter of intent). What happened and why? Read the rest of “Building rapport and negotiations with Chinese, or "No Relationship…No Business!”” or post a comment
August 30th, 2007 by China Business Success Stories
By William R. Dodson
“Stupid. You’re stupid!” my Chinese friend accused me. I hadn’t felt I deserved that sort of abuse. I had negotiated a transaction in Chinese language and thought I’d gotten a pretty good deal. My friend persisted in calling me “stupid,” since I could have received the goods for a tenth the price in Beijing. I was near hanging up the phone on my friend in exasperation. The friend, confused, shouted, “Wait a minute! Wait a minute! I think I’ve made a mistake! In Chinese we say “shah” to close friends. It means foolish, stupid. I think I used the wrong English word.” I immediately cooled down once I understood the cultural and linguistic barrier that had blocked our communication – and friendship.
One of the reasons Chinese resort to silence in Western companies is the fear of giving offence. A gaffe of language or culture is a tremendous loss of Face for the Chinese speaker and – the Chinese feels – for the Western listener. As we discussed in another part of The Bamboo Ceiling Series, Face is sometimes more important than money to a Chinese. Chinese will Read the rest of “Stupid is as Stupid Does: How Chinese Respond to Language Barriers” or post a comment
August 29th, 2007 by China Business Success Stories
By James Chan
Businesspeople interested in doing business in China will benefit from knowing the Chinese mindset and practicing the following practical cross-border skills.
Chinese Business Practices
1. Respect their business cards.
The Chinese consider exchanging business cards the same way we consider a handshake. They exchange business cards the moment they greet you. People often present their business cards to you with both hands. Take them with both hands. Don’t put the card away immediately. Rather, place it on the table or hold it in your hand for some time. Make an effort to look at the person’s title. Take plenty of business cards with you when you go to China. It’s advisable to adopt a Chinese name. That will signal to people you’re culturally savvy. Ask a Chinese-speaking friend to help you. Print only your name and title in Chinese. The rest should be in English. Read the rest of “18 Practical Tips on Working with a Chinese Partner” or post a comment
August 28th, 2007 by China Business Success Stories
China is a great place to do business - if you know the ‘rules’
By Jack Daniels
Now that the commercial and industrial infrastructure of Mainland China has reached a stable and sustainable level, many companies are considering establishing purchasing programs there. Drawn by the opportunity to lower costs, broaden supplier bases and localize supply for Asia-Pacific region manufacturing sites, there is a flood of RFQs rushing into China.
China is now a great place to do business but entering any new market has its risks. Here are five steps to take before doing business there:
1. Pick your products carefully
While almost any class of product can be purchased in China, not all make economic or strategic sense. Products which have a majority of their value tied to their raw material content rather than the value-add probably should be purchased close to home. A good example of this model is the bath and kitchen cabinet segment. Particleboard and veneers represent most of the value in cabinets. These raw materials most often originate in North America, so even with Read the rest of “Tips for doing business in China” or post a comment
