I offer these tips for leaders who want to do business in China.
1. The Chinese are an intensely patriotic race. Use praise. No disparaging remarks. Not even mild jokes.
2. Exchange gifts. It cements relationships. Don’t just accept gifts, take gifts to give and wrap them. Cash gifts are standard practice in China.
3. The Chinese are very interested in long-term commitment. Build long-term goals and objectives into your proposals. They have a very low divorce rate.
4. Actions speak louder than words. Chinese show they value a relationship through actions. They suspect sweet words.
5. It is difficult for the Chinese to say ‘no’ directly. Anything other than a direct ‘yes’ could mean ‘no’. Be circumspect and reflect on seeming agreements reached. Consider: has an agreement actually been reached?
6. It can take several, very long meetings before any tangible progress is made. Patience is essential if you wish to capitalize on the situation.
7. Chinese will make a deal, than look for openings to lay tricks. Cover the back-end of the deal rather than assume you will work it out later. Make sure they deliver. Have clear contract terms. Search for problems before they materialize. Do risk analysis.
8. Do not assume comprehension. It is often useful to go over the same point several times from different angles in order to aid comprehension.
9. If you are going to have employees in China, prepare a formal written code of conduct and require that all new employees sign the code as part of their employment contract.
10. Saving face is important. Never allow your partner to become embarrassed. Make people look good.
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