5 Chinese Negotiating Styles

June 12th, 2008  by China Business Success Stories

By Andrew Hupert

Negotiators in ChinaManagement consultants and academics who look at negotiation sometimes place counterparties on a matrix of 2 dimensions – concern for others’ goals and concern for one’s own goal.

Competitive negotiators care only about their own needs and nothing for the counterparties. They are Win-Lose negotiators.

Accommodators are those that care more about their counterparty’s needs than their own. Salesmen with important clients fit into this category of Lose-Win negotiators.

Compromisers are the ones that try to work out differences and arrive at an equitable distribution of scarce resources. They look Win-Win, but many negotiators consider them Lose-Lose. Read the rest of “5 Chinese Negotiating Styles” or post a comment

Business to Business Market Research in China – Part III

June 6th, 2008  by China Business Success Stories

Business to Business Market Research in China - Part IIIThe subject of what can and cannot be researched in China is a contentious one, and – as with data collection methods – there is a tendency for the ‘uniqueness’ of China to be exaggerated in this respect.

In terms of subject matter, the truth is that there is very little difference between what can be researched in China and what can be researched in Western countries. Culturally, there is no great reticence in terms of providing information

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The Hidden Costs of Outsourcing: Beware and Be Wise

June 5th, 2008  by China Business Success Stories

By Hayden Hong

Outsourcing costs productivityEvery day, more organizations are eagerly embracing the concept of offshore outsourcing to lower costs, increase efficiency and productivity, and enable employees to focus on the innovative, core endeavors that drive business forward.

IT departments have been early adaptors of outsourcing projects and services. Now manufacturers, original equipment manufacturers (OEM), original design manufacturers (ODM), independent software vendors (ISV), system integrators (SI), and value-added resellers (VAR) whose products rely on embedded software and hardware across countless industries are exploring the benefits of offshore outsourcing to stretch their R&D dollars.
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It’s not only friendship that creates Guanxi

June 3rd, 2008  by China Business Success Stories

By Ron Cune

Asking for a Favour in a Chinese NetworkOne of the most widely discussed subjects about doing business with Chinese people is the concept ‘Guanxi’. Literally ‘Guanxi’ means “being closed into a system”.

Not without reason, the term Guanxi often isn’t translated into English. In some occasions Guanxi is translated as ‘networking’, but that doesn’t really get to the deeper meaning of the word. While networking is based on knowing which person does what, Guanxi is based on the right to ask for a favour. Furthermore, Guanxi relates to someone’s background, work relations, family matters and relations that have nothing to do with friendship. Being aware a favour from the other party can be asked for, is the essence of Guanxi. Read the rest of “It’s not only friendship that creates Guanxi” or post a comment

Chinese Chops – the Ultimate Business Tool

June 2nd, 2008  by China Business Success Stories

By Maarten Roos

Chinese Company Stamp as Legal RepresentativeAn important difference in business practices between China and many western countries is the value that courts and officials give to the stamp (in China often referred to as the “chop” or seal). We introduce the rules and practice, and some suggestions on how to manage your risk.

For many western companies, the signature of its legal representative is the ultimate mark of authority. Not so in China. Since a representative’s signature is rarely registered, the value of the company stamp is far greater. Every company in China, after it is established, will make and register its company stamp with the local authorities (in this case the Public Security Bureau). Towards third parties, this company stamp represents the company, therefore documents bearing this stamp will generally be legal and binding upon that company – whether that document bears a signature or not! Read the rest of “Chinese Chops – the Ultimate Business Tool” or post a comment