Due diligence
« Previous Entries10 Signs that your China Deal is Getting Too Complicated
Monday, August 6th, 2007Negotiating with Chinese counter-parties is getting easier all the time, but there are plenty of situations to look out for. Many westerners who enter into a negotiation with a Chinese counter-party are so sensitive to cultural and interpersonal issues that they lose sight of business issues. Big mistake.
Deals in China can go off the rails […]
Find 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 […]
Successful Negotiation in China: Fool me once, shame on me.
Monday, June 18th, 2007If a counter-party lies to you once, they will lie to you again. This is true ANYWHERE IN THE WORLD, but for some reason, western investors and managers looking to do their first deal in China need to be reminded of this.
Just for the record, a lie includes:
Saying they have already have ISO 9000 certification […]
In China, Service Contracts are not automatic
Tuesday, May 15th, 2007I was on the Shanghai subway recently – which is looking a little less shiny and new these days. It is still damned impressive though - bordering on ‘Sci-Fi’ to a New Yorker who is used to standing on naked concrete platforms as the antique R train goes shambling past. But here, in the futuristic […]
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 […]
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, […]
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