Doing business in or with China has its own challenges which is very different from doing business with any other country. Working in and with China is not easy and the Westerners find it very difficult to continue doing business with Chinese counterparts. Here are the 10 commandments to make your business relations with China easy and free flowing.
- Gather Knowledge– This is the biggest challenge for westerners. Any similarities between China and any foreign country in terms of business is not similar. This country has a completely different culture which may not be very healthy for you or your business. The surface similarities will fade in sometime and the reality will be exposed and you have to be prepared for it.
- Communist– China is still a communist nation and that will not change, thus, it will be difficult for any capitalist to do business in the Chinese environment.
- Be Present– Doing business in China definitely requires you to know about their business scenario in person. Providing a duplicate does not help in such a circumstance thus keeping yourself too busy or engrossed in something that is not essentially Chinese will not help you in anyway.
- Do not get Frustrated– The less frustrated you get, the more you will be able to work with the Chinese business organizations. If all the Chinese guys will start working properly, then there will be no scope for the westerners. Hence, try not to get frustrated with the scenario; instead, try to be patient and gel with them while working.
- Time is Not Money in China– Unlike the west, time does not mean money in China. The Chinese business people do not believe in opportunity cost and thus simple negotiations can drag for a long time. Tactfully avoid getting involved in ‘n’ number of meetings which actually do not accomplish anything.
- Culturally-Specific Concepts– Honesty, goodwill and long-term benefit along with truth are all culturally relative concepts. These cannot be carried from the west to the east directly. So, you have to control your expectations before starting work with them. Win-win situation is not really an actual outcome of the business meetings and practices in China. Long- term relationship does not mean much in the Chinese context.
- Secure Information– Keep your information safe and secure and do not divulge anything to someone you do not know personally. Company’s intellectual property and money should not be handed over to anyone else and beware of the Chinese company’s practices because they do leak major information which could cause loss. Do not work with information peddlers.
- Do not Look for Cheap Company– Do not settle for the partner with least monetary quote. Such business houses do not get into connections or relations thinking of settling long-term. They are simply interested in making money and thus that increases.
- Do not Just Sign a Deal– Make sure that you do not simply sign a deal because you think that signing a contract is the major thing and that Chinese companies are not going to entertain anything after sometime. You will not miss the boat. They are going to be there.
- Have a Plan B– This is the last piece of advice as a plan B always helps. You should have a plan B at place the plan A goes wrong. It helps to have a plan B along with sense of humour.
Chinese business lawyers always provide help to their clients by telling them what to expect and what to do while doing business in China. You have to keep the differences in mind while also doing business in China and create a blend in terms of business strategies so that they become effective.