I am attending the class, ‘Culture and Business Strategy in China’ by Prof. Keum, Hiyeon. And this is the second question of mid-term exam. I do not know whether it is right or not. The most important thing is that the right answer is nowhere in the world. :p
The pic was taken in the heart of China’s economy, Shanghai.
10 core things that you have to remember when you do business in China
1. Language You had better learn Chinese and it makes you easy to make Chinese friends. However you had better speak English or your mother tongue at the negotiation table. Chinese could be profound and hard to understand. The Chinese can make use of language thing and you can make mistakes in the contract. Just check out the interpreter translates right or not.
2. Guanxi
Guanxi is an interpersonal relationship on both vertical and horizontal sides. You have to do your best to build and maintain it when you want to do something in China. When you get to the highest level of Guanxi, they might invite you home. However you gotta understand the concept of ‘give and take’ reciprocity that the Chinese generally share.
3. Mianzi
The Chinese do not want to lose your their faces. It is strongly based on not rational choices but human feelings. You can recall the memory that Korea made Taiwan lose their face as Korea did not recognize them off-the-relationship. You have to be careful ’cause losing face will bring a revenge even by generations.
4. Paixi
The concept means factionalsim. Groups generally based on ‘Danwei’, a working unit, hometown and alumni share goals and strategy especilally in the politics. Think about Tsinghua Bang and Shanghai Bang.
5. CCP and Yibashou
You had better understand firstly Chinese society wholly dominated by CCP anywhere in China even in the university. Find out the secretary of CCP as soon as possible not to waste of your time with non-stop talkers and ask them directly. Since they take responsibility and decision-making.
6. Hao does not mean positive answers.
When you hear ‘hao’ or ‘Shi’ in the conversation especially at the negotiation table, you had better not think that it means a positive answer. ‘I’ll check it! and I’ll try it’ mean negative. They response like that not to lose you face. You may well think ‘hao’ as ‘i hear you!’.
7. Bring the tiger out of the mountain.
Home advatages can be happening at the negotiation table. Drinking habit and tour-first contrac-later culture could be kinds of that. Try to negotiate in your own country when you sign the important contract.
8. Ethiquette
Understanding Chinese culture especially at the dinner is very important. You may well google ‘drinking habbit’ and ‘sitting positions’ before you do business in China.
9. 貨比三家 – Huobisanjia
At least visiting 3 shops when you shop. This is also the basic principal of doing business in China though you trust your partner a lot. You have to compare qualities and prices of products before signing the contract.
10. The Chinese never shows their final cards.
Be patient when you negotiate with the Chinese. Once you show them your final card like a discounted-price or the time of your return flight, they would be glad to negotiate. Try to say ‘ I’m gonna be back home after the negotiation’ instead of ‘I’ll be back this frieday.’
