Don’t Be The Deal Killer
November 15, 2008
As you look to develop your business in China, the last thing you want is to have your deal killed over a business or cultural Faux Pas. Whether, you are expanding your own business, going to work in China for your employer, or developing suppliers, you will at some point make a trip to the Middle Kingdom and come face to face with the people and the culture. Rather than having an 11th hour cram session before the trip, we offer three basic tips that will ensure that you aren’t a deal killer.
Trust
Having a suspicious attitude, unwilling or hesitant to share information or condescending mannerisms will be undesirable. Know what information you are willing to share and have a plan to share it prior to the trip. The last thing you want to do is give the store away, but you need to come to the table with enough information to make the potential Chinese business partner comfortable. This way they will feel that you are serious about wanting their assistance.
Culture
Here at home we want to get the “deal done”. In China, it’s about having patience and developing Guanxi (relationship). Be flexible about the culture and don’t hide behind your own. Would you do business with someone that was not curious or willing to learn about the US culture? It goes both ways. The key is not to go “hog wild” about each and every nuance, but to learn about the customs, history and most importantly treat your future business partner with respect. The Chinese are very forgiving of lapses in cultural edict, especially the younger generation. Also, the US visitor tends to get caught in the moment and may do things that are not normally done back home. Decide on your boundaries before you go to China. Remember the risk in China is the same as the US, if not more.
Work
The work is never done in China. After long hours of negotiation, do not get lured into the false hope that everything is done. The Chinese hate to say no. The language and the way discussions take place are never direct, answers are vague or even not correct since they think you are going to hear a “yes”. Knowing when “yes” means no is a cultural difference between the East and the West. We have rule of law at home. In China your relationship is as good as the market. The best way to stay on top of your relationship is to make a concerted effort to keep it strong and lucid. Nothing is forever, and there are no guarantees that your contracts will not change.
The three points above are the real “Deal Killers”. There are thousand of websites and hundreds of books that will give you all the “Dos and Dont’s”, where the Chinese are more tolerant.