doing business in china - what every american needs to know, presented at sourcedirect at asd 2015
TRANSCRIPT
Presented by Stephanie Selesnick, PresidentInternational Trade Information, Inc.
[email protected]@stephselesnick
True/False:1. China is one time zone2. The concept of face is all about the make-up3. In China, negotiation is a national sport4. Chinese people are terrible at returning
emails.5. If you cut anything up small enough, it all
tastes like chicken.
Trade show veteran Helps internationalize US trade exhibitions International expo industry blogger US Sales Agent for SNIEC, Shanghai New
International Expo Centre, the largest privately held/run center in China
First trip to China was 1991 Love to share knowledge and learn!
Chinese Geography Languages
Chinese Culture The Concept of Face
The Government’s Role Anatomy of a Business Relationship
The Beginning ▪ Gift Giving
▪ Mealtimes
The Dance - Negotiations
Ongoing Relationship Challenges Questions & Answers
Mandarin is spoken in the north (and west) Cantonese is spoken in the south Written Language
Mandarin:
▪ Simplified: 3500 characters
▪ Traditional: 7000+ characters
Cantonese:
▪ 5009 characters
Communication is different due to cultural differences: Formal Hierarchical Rules are important “Personal Space” is different Most have no siblings or first cousins People address each other formally Titles are ALWAYS used Relationships, Relationships, Relationships
Long term focused
“Face” is your position and standing in the eyes of others, and it also has to do with the degree of respect you receive.
Face represents a person’s reputation and feelings of prestige within multiple circles, including the workplace, the family, personal friends, and society at large.
The concept of Face can be understood by breaking it down into separate components: the individual view, the community view, and actions.
Business Relationships: The client usually receives more Face in the early
stages of a relationship from the “seller.” Face must be given to the client in order to make it believed that the seller is worthy of their money and time.
Excerpted from: http://chinaculturecorner.com/2013/10/10/face-in-chinese-business/
1. Whenever someone outranks you or is older than you, show more respect.
2. Give Face when you want something from someone in China (e.g., a business deal or a favor)
3. Forming the relationship is important and Face is merely the facilitator.
4. Even when not required, Face can still be useful in all business dealings with international suppliers.
The Beginning
The introduction
Turtles
Email and the challenge therein
Expect lots of professional and personal questions
▪ Longevity of your company
▪ How long you’ve been in your job/your work history
▪ Personal – expect the gamut
Meeting in Person is a must.
The Chinese Government – much more control, some corruption
Ministry of Commerce- top down The US Government – will they help?
US Dept. of Commerce
Gift Giving is a fact of life in China. Exchanged either at the introductory meeting
or after negotiations are completed.
They should not be too nice, or it looks like a bribe.
Sometimes gifts should be for an office, sometimes for the person you are meeting with.
Use 2 hands to deliver the gift.
Remember the hierarchical business culture and gift accordingly.
Packaging presentation is important!
Wrap gifts in red, gold, pink or silver. Never in yellow with black writing, white, black or blue.
Good: Brand names US Chocolates/Candies (See’s Candies in gold boxes) US Basketball logoed items Something with an “8” Handicrafts or illustrated books from your home town
Bad: Knives (sharp instruments), shoes, watches (clocks) Anything in the color white Green hats Nothing with a “4”
Food is important! Usually held in a private rooms of restaurants
Where you are seated does matter.
The food is normally pre-chosen/ordered.
Spare bits and parts (offal) are almost always included
Use chopsticks
Rice comes at the end of meal and is only eaten if you are still hungry (an insult to the host).
Toasting and alcohol
Many Chinese don’t want to eat our food.
Ask if they want to try something new
Ask around for a “real” Chinese Restaurant
No PF Changs!
See if you can get a more private area within whatever restaurant you go to.
Mealtimes are “getting to know you” sessions – not business (both countries).
Where you are seated does matter Business Card etiquette:
This is everyone’s “face” or “image” to the World.
▪ Use “+1” before the US area code
▪ Always put USA or United States on your card
How do you present your card to others?
▪ In Asia: Two handed and examine it.
Never place another’s card in your back pocket or write on it in front of them!
Leave the business cards on the table in front of you, arranged how people are sitting so you may address them by name.
Top level execs do the talking unless subordinates are asked specific questions.
They do not speak out of turn.
On interpreters – they sit behind whoever they are translating for
Negotiating is a national sport. “Special prices” Yes does not always mean yes, but no usually means no. Relationships, relationships, relationships!
Expect renegotiation just when you thought the deal was done (just one more thing)
The Grind Get the deal in writing! Use an experienced legal
team.
Read this: http://www.chinalawblog.com/2012/08/how-to-handle-chinese-negotiating-tactics.html
Quality Control is the #1 complaint
Inspect, inspect, inspect
Incoming inspections must be done in China, preferably at the factory.
Have your own staff or hire a QC company in China to handle inspections.
The email hassle Things always take longer than you think
they will. Patience is a necessity.
You’ve made an order with a Chinese factory. It’s arrived and is wrong. How do you handle it without making your supplier lose face?
The Chinese have had thousands of years to develop their culture. In the US – 200+
Once you think a deal is done, it’s just beginning.
If you cut anything up small enough it tastes like chicken.
Gift giving is important. Always do your homework!
True/False:1. China is one time zone (True)2. The concept of face is all about the make up
(False)3. In China, negotiation is a national sport
(True)4. Chinese people are terrible at returning
emails (True)5. If you cut anything up small enough, it all
tastes like chicken (mostly true)
Presented by Stephanie Selesnick, PresidentInternational Trade Information, Inc.
[email protected]@stephselesnick