Though this statement seems to contradict many books about doing business in China, this statement is not referring to the calm “getting to know each other rituals” or handling operational management issues. Informal meetings and endless banquettes are considered by many Western businessmen as a waste of time. They prefer to ‘cut the crap and do business before flying back home.
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In the Western world and especially in the Netherlands, open exchanges of view and fair discussions are very common. This sort of verbal interaction has a positive positively interpreted connotation. It is a proof the discussion partner is interested in you and your opinions.
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A simple taxi ride from Shanghai to Suzhou put me very much in mind of developing contracts with Chinese – even the simplest of contracts. Very seldom in business do Chinese adhere to the Letter of the Law, while they exorcise its Spirit at their earliest convenience. And if the agreement is verbal, then watch out!
The deal was this: for 300RMB – including tolls – the Shanghai driver would take me to Suzhou. Assumptions: the taxi driver with whom I made the deal will be the one taking me; only the taxi driver and I will be making the trip; the trip will be direct, along the HuNing Highway that connects the two cities; the trip should take about an hour, since it was already 8pm, past Shanghai rush hour. Train and bus tickets back home were sold out.
I explained to the police in Suzhou the reason I refused to pay the taxi driver the 300RMB – instead, offering 200rmb – was that the driver and the taxi ring had deceived me, wasted my time and scared me half to death. Mind you, it was I who had called the police, because a Deal is a Deal and by golly this interpreting agreements Chinese Way was seriously getting on my nerves at the end of the trip, near 11pm.
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By Frank Mulligan
When a company sets up operations in China they appear to be faced with two distinct choices: ‘going local’, or imposing the dominant business culture of their organization.
It’s not an easy choice, and there are no clear cut answers as to which route will bring you the best results. In the absence of a definite conclusion it can become a battle of wills to see which culture will win.
Choose the local culture and you will be in a position to motivate local staff more effectively, but much of the operations of the business will become opaque to non-locals. Things will get done but not necessarily the way the Headquarters wants them to. What you gain in effectiveness, as defined locally, you lose in visibility. Read the rest of “Think Global, But …” or post a comment
Chinese market has been a highly preferred market for many organisations worldwide in the past twenty years. However, it is not an easy market to penetrate. Australian companies are among those Europeans and Americans who have been tackling the market with little positive results. One primary reason is that they do not appreciate the important role and impact of Chinese culture.
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