Newsletter Week 50

Dear Reader,

“Guanxi” Demystified: How it differs from our usual “Connections”?

In the Western world, having the right relationships or connections, while very important, is usually not a sufficient (nor in many cases a necessary) condition to get business done. You'd need to have sound business fundamentals first. In China, for a long time having Guanxi this “ultra-relationship” or “super-connection“ ALONE could already ensure a "done-deal", regardless of the fundamentals…

You might have heard the Chinese word “Guanxi“ (pronounced guan-shee, literally meaning “relationship” or “connection“) frequently touted by many a China consultants or “old China hands” who have been there and done that.

But don't we all on this planet talk about and need “relationships” and “connections” in business? Then how is this Guanxi different from the usual “relationships” and “connections” that we know. And just how much of it is a “guarantee” for success in China, and how much of it is merely a China consulting “chic”?

Pre-departure training for expatriates who are sent to China

How to be prepared for the experience called China? Pamela Lau did an interesting scientific research about pre-departure training for expats planning to go to China.

Though there is some literature questioning the effect of pre-departure training (Kealy and Protheroe, 1996; Selmer et al, 1998), it is clear that according to expatriates, pre-departure training is relevant. With the data obtained, statistical tests were conducted to create a deeper understanding of the needs of expatriates that are sent to China by their companies. 

Pre-departure cross-cultural training

It was quite surprising to find that only little less than half of the respondents received pre-departure training, although they were all working for MNEs. This goes against most studies done on the effectiveness of pre-departure cross-cultural training...

China Expert Guest Blog

Is Sourcing in China Safe?

Sourcing to China can be cost effective, but if something goes wrong, it could have a dramatic effect on your bottom line — and negatively impact customer opinion of your business. Can we trust domestic producers and distributors to control quality with fervor equal to their pursuit of low wages? Cheap labor is the easy part; the quality thing is a much tougher nut to crack.

A product recall is a very visible and expensive sign of a serious quality problem. The life threatening potential of some problems long ago led American government and producers to develop recall and reverse distribution systems.

For the most part we’ve become good at figuring out which product is at risk, where it went, and executing the recall process with limited harm to life. But lately faith in American product-based businesses has been shaken by the apparent lack of due diligence in assuring low-wage Chinese suppliers meet the same standards as our own.

Western and Chinese business-More Than 1 Way To Communicate

Yesterday Greg Bissky posted a new video on YouTube.

According to Greg, Westerners must learn that there is more than one "right" way to communicate. The Western rule is, "get straight to the point," but Chinese use a different rule, "build the relationship first."


Watch the video

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