December 21, 2009
Outsourcing to other countries has been an increasingly popular way of cutting down costs through manufacturing and sourcing for businesses, and the top choice is China. Many companies, however, failed to realize earlier on that they don’t know how to deal with individuals from other countries. Business practices vary from country to country, so this realization is critical for companies who want to source products from other countries. Doing business in China can be extremely challenging for companies unaware to deal with changes in cultures and values.
One of those obstacles when doing business in China is overcoming introductions. Knowing the right person can ensure that they receive the attention of their desired audience. So knowing these people is critical in your China endeavors. Keep in mind that some people who are capable of providing these introductions will do so only when it is beneficial for them. Westerns may view this as unethical, but this is just another cost you’ll have to consider when doing business in China.
Doing business with China usually requires a trip to the country; timing and preparation is the key to the success of the visit. Some people fail to realize that Chinese New Year is usually in the month of January or February. Businesses take a one to two week break for this important celebration. You may also want to schedule your China business trip two weeks in advance and must inform the potential business partners in China The Chinese are very hospitable people, and they will most likely plan additional activities after business.
Business meetings in China are conducted very differently. Sitting down and going right into business is considered rude. The Chinese like to first exchange business cards and like to study them for a little while before moving on. Then some small talks about the weather, family, or your impression of China take place before the actual business conversation. This is a way for them to get to know you better, and its very important to form a relationship of friendship and trust before they feel comfortable in discussing business topics.
Negotiation will no doubt be another difficult hurtles for Westerners. While most American tends to decline an offer directly, the Chinese avoid sending out negative messages. Rather, they will indirectly hint on a refusal; this is something you might not be able to pickup unless you listen very carefully. Many negotiation proceedings will be conducted over lunch or very long dinners, because for the Chinese, business and entertainment are complementary.
The biggest mistake for a company to make when doing business in China is not sending the right people or not using a professional translator. Sending the right people over to China shows your sincerity and seriousness in doing business in China. Having a professional translator ensures that everything is understood by both parties. By being aware of these facts and be fully prepared, you will make your business trip to China that much more successful.
For more information on sourcing in China, please visit our website at http://www.csandcm.com/. We are professionals that will help you in every step of the way when sourcing in China.
