Slide 1: Task 3839 Lico Reis Consultoria & Línguas licoreis@licoreis.com www.licoreis.com Brazil Phone: 55 12 3133 1393
Doing Business Abroad China
Improved international relations, government reforms, an expanding economy and increased foreign investment make doing business in China a potentially lucrative affair. Doing business in China means that business people will come into increasingly frequent contact with Chinese business people and officials. It is imperative that those doing business in China learn about areas such business culture, business etiquette, meeting protocol and negotiation techniques in order to maximize the potential of their business trip.
Lico Reis Consultoria & Línguas
Doing Business in China
Confucianism
In essence Confucianism revolves around the concept of harmonious relationships. If proper behavior through duty, respect and loyalty are shown in the relationships between a ruler-subject, husband-wife, father-son, brother-brother and friend-friend, society as a whole will function smoothly. When doing business in China it is possible to see how Confucianism affects business practices. Of the less subtle manifestations are an aversion to conflict, maintenance of proper demeanor and the preservation of 'face'
Building Relationships
Relationships in China are very formal. Remember, when doing business you are representing your company so always keep dealings at a professional level. Never become too informal and avoid humor. This is not because the Chinese are humorless but rather jokes may be lost in translation and hence be redundant. When doing business in China establishing a contact to act as an intermediary is important. This brings with it multiple benefits. They can act as a reference, be your interpreter and navigate you through the bureaucracy, legal system and local business networks.
Slide 2: Face
Roughly translated as 'good reputation', 'respect' or 'honor,' one must learn the subtleties of the concept and understand the possible impact it could have on your doing business in China. There are four categories of face. 1) Where one's face is lessened through their involvement in an action or deed and it being exposed. The loss of face is not the result of the action, but rather it's being made public knowledge. When face is given to others through compliments and respect. Face is developed through experience and age. When one shows wisdom in action by avoiding mistakes their face is increased. Where face is increased through the compliments of others made about you to a third party.
2) 3) 4)
It is critical that you give face, save face and show face when doing business in China.
Meetings and Negotiations
Meetings must be made in advance. Preferably some literature regarding your company should be forwarded to introduce the company. Try and book meetings between April - June and September October. Avoid all national holidays especially Chinese New Year. Punctuality is vital when doing business in China. Ensure you are early as late arrivals are seen as an insult. Meetings should begin with some brief small talk. If this is your first meeting then talk of your experiences in China so far. Keep it positive and avoid anything political. Prior to any meeting always send an agenda. This will allow you to have some control of the flow of the meeting. The Chinese approach meetings differently, so rather than beginning with minor or side issues and working your way up to the core issue, reverse this. The Chinese are renowned for being tough negotiators. Their primary aim in negotiations is 'concessions'. Always bear this in mind when formulating your own strategy. You must be willing to show compromise and ensure their negotiators feel they have gained major concessions. www.licoreis.com - licoreis@licoreis.com - Twitter: @licoreis E-books: www.migre.me/oQ5 - Linkedin: www.migre.me/1d9r
