Wednesday, June 29, 2011

How Do I Import From China

First Take all the time in the world

Foreign visitors are often tight deadlines and unwilling to slow down in discussions of Chinese businesses. But in China, the pace can be fast and slow at the same time. Those involved in negotiations know how long it can last if China is conducting internal consultations or have other reasons for the delay. But Chinese negotiators can move at high speed in the past. Part of this feeling is subjective. Any chess player knows how long to wait for the other player and yet how quickly you have to move. However, Chinese negotiators use time more consciously than their Western counterparts.

2. Understanding distinguish facts from fiction

Almost all of you have heard about China is true, and so is the opposite. Western thought is centered on the linear logic of thinking, while the influence of early Chinese philosophers, who saw a paradoxical balance of opposites in all conditions. When Westerners tend to look for the correct options (one choice instead of option B), China to explore ways to combine both option and option B. This difference in approach can make vision of the stranger, the Chinese negotiator is unlikely, evasive or devious, if they feel it is very simple.

3. To build relationships

Foreigners generally build transactions and, if successful, one outcome of the partnership. But the Chinese believe that the potential business partners to build a relationship first and, if successful, commercial arrangements. This difference underlies many misunderstandings in the context of trade negotiations. Almost every business successfully in China is due to the careful cultivation of the Chinese partner, such as foreign, until a relationship of trust develops.

4th Cultivating "guanxi"

The logical development of close relationships is the Chinese concept of guanxi, pronounced Shee Gwann. According to business analyst Tim Ambler of London Business School, is the kernel of guanxi to do business with value judgments relations. In a highly centralized, bureaucratic state, was the use of personal contacts, the only way to get things done. Guanxi is the counterpart of a commercial legal system. When the latter is relatively small, as in China, will need to rely on guanxi to be strong. As the partnership is greater than the transaction, it makes sense of honor. The idea of ​​a relationship that leads to the company. But the Easterners who are familiar with guanxi are more cautious than converts abroad. Head of Communications of guanxi are very real. In the wrong place at an inappropriate time, with unsuitable people, the commitments would be a trap in which it is difficult to escape.

5. The special care agreements with the exhibition

Chinese and Westerners often approach a deal from each end. To a Westerner, starting with a standard contract, the change to adapt to different circumstances and to sign the revised version sounds great. Business is built intoour thought. But traditionally, commercial law rarely existed in China and certainly indicated bad faith. The early appearance of a draft legal contract was seen as inappropriate or, more likely, irrelevant, because it showed no signs of commitment. The company said it could be a useful program, but the obligations came from partnerships that are not pieces of paper. Now returned with a signed piece of paper is a symbol of progress, but that's all. The Chinese may sign a contract to humor their guests. For them, just completed a contract proof that the two sides were close enough to develop a partnership of trust. Further concessions may then be asked - a difficult prospect for the Westerner who has reduced his margin down to the button.

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6. Mobilizing local resources

Challenge of learning to speak fluent Chinese, the complexity of the Chinese way of doing business, and a strong sense of patriotism, means that a stranger is rarely acknowledged by Chinese interlocutors on equal terms. The solution is to find a reliable local allies to work with you. An effective Chinese colleague will be able to analyze the body language in meetings, and figure out who is the other team of negotiators to keep the real power - not always the leader - and help iron out all the unwanted questions. Similarly, the presence of a foreigner should be fully exploited. Chinese partners are often seen as a foreign visit has shown the sincerity and commitment to international trade. Perversely, they are often not compatible with mainland China and Hong Kong representatives treated as a foreigner. Complete the sales team, then, is usually the time to take care of local contacts and practice, and a stranger to do honor to the highest degree.

7. Observe the face

Face is an important part of Chinese national psyche. This means that overlooks a large space in the eyes of your peers, and is a measure of dignity. The Chinese are very sensitive to acquiring and maintaining face in all parts of the social and economic life. Face is a valuable asset that can be given, lost, stolen or earned. Cause someone to lose face could destroy the business prospects or even invite recrimination. The fastest way to get someone to lose face is a put-down of the individual or to criticize them in front of others. Foreigners may inadvertently violate the Chinese making fun of them joking way. Another error can be treated as a subordinate when their status within the organization is high. Just as a face can be lost, you can also integrate some great work in front of their colleagues. Giving face earns respect and loyalty, but praise should be used rarely. I use too much faith suggests bad side of the donor.

8. the hierarchy

Mao Zedong's thoughts on discipline published in 1966 gives a valuable insight into the structures that exist in Chinese organizations, even now: "The individual is subordinate to the organization, the minority is subordinate to the majority of the lower level is subject to the next level ... "This quote, which underpin the way China was governed for more than two decades, why the Chinese communities and organizations are very hierarchical organization, and why the Chinese seem to be more focused on the group of individualistic and often do not support. Similarly, people are rarely willing to give an opinion before their peers, because it can cause loss of face with a trusted ally .

9. Knowing the tricks of the trade

Eastern negotiators are shrewd and use a variety of negotiating tactics. The following are just a few of the most common strategies:

- Control of the meeting room and schedule

The Chinese know that foreigners who have traveled the distance in China will go home with nothing. Press to foreigners before their scheduled return can often bring useful benefits to China.

- Threatening to take their business elsewhere

Foreign negotiators may be pressured to take into account when the Chinese side threatens to approach rival firms if their demands are not met.

- Using friendship to extract compensation

Once the two sides met, the home can call the foreigners that true friends do not come to a mutually beneficial rate. Make sure that the rich are paying each other and not one way.

- Show the hated

Despite the Confucian aversion to displays of anger, the Chinese put on a show of anger deliberately to put pressure on the foreign party who may have fear of losing the contract.

- Porter

The Chinese negotiators are patient and can be pulled out of talks on the country of their interlocutors down. Excessive hospitality of days before the talks could be another variation on this theme.

10. Play the game alone

Foreign negotiators dealing with the Chinese were able to find some of the following tactics for success:

- Be fully prepared

At best, one of the foreign teams must have a thorough knowledge of all parts of the business arrangement. Be prepared to give a presentation long and all-inclusive, taking into account not to disclose sensitive information technology before reaching a comprehensive agreement.

- Play off competitors

When the going gets tough, will give the local side will know that I'm not the only manufacturer in the region {. Competition from Chinese producers is increasing. There may be other sources in the country that the party has to offer.

- Do not rush

East in general believe that Westerners are always in a hurry, and can try to make him sign an agreement before you have enough time to review the details.

- Be prepared for your losses and go home

The east side of the lack of agreement is a possible alternative to a negative issue.

- Covers all aspects of the contract before committing to it

Complete agreement with China Talk. Make sure that your interpretations are consistent and that everyone understands their duties and obligations.

11th Get expert advice

Enthusiasm often hard to deal with China replaces the normal due diligence that would be expected before committing. Too often Australian companies try to negotiate with local distributors, wholesalers, joint ventures and producers and get what they think business conditions are good, only to discover things are not what they seemed. Communication is essential to avoid this and if you do not, you have quality representation in China, you will find it difficult.

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