Nr. 5, June 2007

Dear Reader,

• Don’t forget to read Dalida’s article on 'fake' drinking, in order to stay successful in the Chinese business arena.

• Satisfy your appetite by discovering what the quintessential act of establishing, and reinforcing guanxi through an ancient ritual of nourishing the body and mind together, is all about, according to Marc Combe.

• And if you’re looking for more food for thought, join Alexander de Nerée who feels fortunate to be living in Hong Kong. Or rather, ‘China-light’: “Not so much fun, but a bit healthier for you.”

Lawyer’s advice on legal self-protection in China

On his first visit to China in 2004, Alexander de Nerée liked what he  saw. So when he was asked to set up De Nerée Advocates in Hong Kong, it did not take him long to decide. “I am really fascinated by China, but I also feel fortunate to be living in Hong Kong. Hong Kong is really ‘China-light’. Not so much fun, but healthier for you. With the fairly Westernised attitude of the Hong Kong people and the relatively high standard of English, the business climate for foreigners is better here then in most parts of China. It’s like Switzerland in Asia. Everything is well-organised and clean.” So there is not much work to do for lawyers in Hong Kong then? “Quite the opposite. Many businesses choose Hong Kong as their base to start operations in Asia. An obvious choice: all the leading banks, insurers and accountants are around the corner. Hong Kong also plays an important role because of its favourable tax regulations and the excellent legal infrastructure. It is actually a sort of ‘home away from home’. A safe haven to start if you are looking to do business in mainland China. Where of course other legal concepts and basic business rules apply. In that last category, when clients ask about do's and don'ts I generally advise them to bring their patience and their credit card.  Read the rest or post a comment »

Brewing

Guanxi at the dinner table (bread for breakfast is bad enough)

One of the most striking and instantly recognizable characteristics of Chinese travelers in Europe is their fondness of their own Zhongcan, Chinese food. Having in most cases been forced to satisfy their first appetite of the day in a hotel dining room with bread, cereals and such to them is one of the aggravations of traveling in the West. All this is readily forgotten when lunchtime and later on dinnertime bring the opportunity to put the chopsticks to good use and dig in for a good familiar Oriental feast. Not in the kind of non-descript restaurants most Dutchmen call “de Chinees” where Indonesian and Southern Chinese-style cooking are strangely intermingled, no, fortunately we have our fair share of authentic Chinese eateries where many dishes from back home are skillfully prepared, and guests from far-flung places such as Sichuan or Heilongjiang are happy enough even to find Guangdong cuisine.  Read the rest or post a comment »

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Business in China - Relationship Building

By dalidat

Prior to privatisation in China, business only existed in the form of State Owned Enterprise (SOE). These were (and still are) run by people with strong political backgrounds and relationships, usually connected by family ties to someone in the government. This sort of closed organisational structure gave no opportunity for its employees to be involved in any decision-making processes. Often leadership based on strong company ethics and principles was an important factor in decision making and staff motivation, although the extent of government financial support available meant that SOEs frequently didn't need much in the way of business knowledge or understanding of the market. Success was based rather on good relationship building , which effectively meant getting government financial support. With the boom of joint venture in the late 80s and early 90s, foreign investors started sending their own managers to interact with the SOE business culture. They were given great packages as incentives to compensate for hard local living conditions. In the 13 years I have been living in China, I have heard stories, too numerous to mention, of foreign managers attending hundreds of banquets and getting drunk with government officials, while the translators took over the communication channels. Most of the time they would have no idea of what was going on, other than that they were expected to drink vast quantities of alcohol, which somehow or other bridged the gap between the two cultures. The main criteria for foreigners to be successful in this business arena were knowledge of the following: - How to 'fake' drinking - How to recognise who is a decision maker - How to impress Chinese counterparts by speaking a few Chinese phrases Read the rest or post a comment »