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GLOBAL: Don't Be the Deal Killer

Posted by Ravi Sastry on 23 Jun 2009 / 2 Comments

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, here are three basic tips that will ensure that you aren’t a deal killer.

Trust

Having a suspicious attitude, being unwilling or hesitant to share information or having condescending mannerisms could immediately ruin a deal. 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 know 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 (pronounced gwan-she, and meaning, 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 American culture? It goes both ways.
The key is not to go “hog wild” about each and every nuance, but to learn about the customs and history and, most importantly, to treat your future business partner with respect. The Chinese are very forgiving of lapses in cultural edict, especially in the younger generations. Also, the American visitors tend to get caught in the moment and may do things that are not normally done back home. Decide on your boundaries before you go abroad. Remember the risk in China is the same as the U.S., 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.” Still, there are thousands of websites and hundreds of books that will give you all the “dos and don’ts” in areas where the Chinese are more tolerant.


2 Comments for GLOBAL: Don't Be the Deal Killer


chase online banking
2 yearss ago


I think that is an interesting point, it made me think a bit. Thanks for sparking my thinking cap. Sometimes I get so much in a rut that I just feel like a record.

(Reply)

Chase
2 yearss ago


Hey, I just hopped over to your site via StumbleUpon. Not somthing I would normally read, but I liked your thoughts none the less. Thanks for making something worth reading.

(Reply)



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