Business Entry
« Previous EntriesFind partners and consultants who have Specialties in China – not China as a specialty
Thursday, July 5th, 2007China’s markets have become much more sophisticated and complicated in just the last few years. That improved sophistication is a double-edged sword for new market entrants. On the one hand, localization of products and services is getting easier as market research becomes available. Quality levels are rising, the regulatory environment is becoming […]
Negotiating in China: Price Bands for Service Providers
Tuesday, May 8th, 2007China business has a well deserved reputation for 2 things – low costs and low quality levels. That’s not necessarily a bad thing – there are times you are more sensitive to cost than to quality. Most businesses, however, have certain standards and minimum levels of quality standards that they must satisfy in order to […]
Negotiating your China Business Entry
Monday, May 7th, 2007Every China business entrant needs to put together a plan for dealing with government regulations, certification and paperwork. Warning: Many Chinese locals will often tell you that a certain type of business is unregulated, under-regulated, or that regulations are ignored or unclear. Be EXTREMELY skeptical of this sort of logic. While it may be true for them […]
Chain of (Outsourced) Fools
Wednesday, May 2nd, 2007Know who is really doing the work for you when you hire a China-based consultant or outsourcer!
When you are working with a China-based consultant or service provider, it is a good idea to discuss who will actually be performing the work for you. Don’t assume that the people you are meeting and discussing project specifications […]
Negotiating in China: Partners in Crime
Wednesday, April 11th, 2007If an American counter-party asked you to issue a fake receipt, forge a contract or commit fraud, you’d probably tell him ‘no’ and then terminate your relationship with him. At least I hope you would. Yet when many newly arrived westerners are asked to do the same type of things in China, and a surprisingly […]
Don’t get caught on the wrong side of a Guanxi trade.
Wednesday, April 4th, 2007Whether you’re new to China or an “old hand”, the Guanxi issue is going to come up during your negotiations. There are only 3 questions you really need to answer when it comes to Guanxi in China.
1)What is it?
Strictly speaking, guanxi translates as “connections”. While almost every business community relies on interpersonal networks and connections […]
Winning Negotiating Techniques for China – Multiple partners
Tuesday, April 3rd, 2007Here’s a negotiating technique that will make your China-based counter-parties hate you – and your US investors and partners love you. Have multiple potential partners in China, and play one off against the other. You’re going to find yourself with lots of time on your hands, waiting for the other guy to make a decision […]
Negotiating in China: Split the Difference
Wednesday, March 28th, 2007Here’s another gem that you’ll run into in your Chinese negotiations, which I like to call, ‘Split the Difference’.
Al and Bob are negotiating the price of Product X. Al, the seller, offers a sale price of 500 – knowing that he will be satisfied with a price between 450 and 470. Bob, the buyer, counteroffers […]
Negotiating in China: Ignorance is Power
Friday, March 23rd, 2007If your China business model involves B2B selling, there is a good chance that you will spend a lot of time negotiating with people who don’t know – or care – about how your product or service works. You are an expert in something that your counter-party is unfamiliar with. In the US, […]
Hide the Bride
Wednesday, March 21st, 2007American weddings have a charming custom of not letting the intended groom see the bride until the ceremony is well under way. Chinese negotiators have a similar custom – though it’s a good deal less charming. In many companies, the real decision-maker never takes part in the actual face-to-face negotiation. Instead you deal with a […]
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