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Jan27
Doing Business with China

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Unless your business is done completely on a local level, there is a good chance that you will be doing business with China

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Dinesh Paliwal who runs the North American division of the Swedish-Swiss company in Davos, learned his business acumen from doing business with the Chinese while working for ABB. 

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He says that:

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“The Chinese have shed any reluctance about the profit motive and have adopted a can-do spirit because they are determined to match their manufacturing prowess with the engineering know-how that will help them become a more knowledge-based economy. But he said it was still essential for foreigners doing business in to show respect.”

 

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One of the key aspects of respect as perceived by the Chinese is concerning decision-making. 

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This is probably the biggest difference between Western and Chinese business culture. Making decisions, in what we in the West would consider a ‘timely’ manner, would be foreign to the Chinese. Doing things quickly and in haste, while considered a sign of competence in the West, is considered the sign of an idiot in. Literally!

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The Chinese have a preference to deliberate longer, even on decisions that may take Western managers five minutes. 

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The Chinese look for a reason to be respectful of choices made. To do this their must be discussion of the subject, they must be asked for their feedback, and then a reason given to explain why it was made. 

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They not only want to be included in major decision-making, but in those that by Western standards may seem a waste of time and unnecessary. 

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With the Chinese it is considered a great honor to be included in the process at all phases. While being left out is taken as a tremendous personal insult.

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If you follow these courtesies, you will find that they will buy-in to the decision, cooperate with it, and feel good about doing business with you. Don’t ignore these insights when doing business with those from .

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