Cisco's Chinese Man → Re: Oh NO!!!

Go their do a Sino American Joint Venture an learn a heck of alot. You might even get out of your diapers.

By the way I have 29 Sino American ventures under my belt in automotive, broadband and food processing and fast food. I would say the situation is understood. Gump and I have 50 between us. I think both of us understand Chinese Business.

I'm not trying to be a smart ass when I ask this, because I really want to know.

What is Chinese business like?

Chinese business is like playing a game. Mid level managment well they are the bag men on commissions or some low level politicain and the real decision makes always sit in the back. You have to get control of the situation and keep control because much of the real positioning on deals and pricing is done over dinner and Mauitai or worse liquor. The word Gambei or bottoms up can become an Americans worse nightmare because what you do and what you say will be used against you at contract signing time. The banking can be trouble and you flat out have to call them on international banking and letter of credit legalities. And you lose lots of sleep when you get those little 2 Am calls. China negotiation is very difficult. To them now days its like well The art of War.

TO cut to the chase you have to really have a product they cannot get from a competitor or have a patent they cannot well take or device they cannot properly and illegially just copy. Your second option is to know chinese legalities as well as their state legal folks. Its truely a game of chess and a challenge.

Also you need to understand only 500 lawyers can practice law in China and North America. Its a small nit family you could say. I have my own that I am raising at Colombia right now my best Chinese friends kid I am very proud of him and he is gonna make a gazillion bucks.

If China wasnt a challenge well why do it. It takes about a 1,000 page book to excplain the tactics and protocal of the situation. Its much easier to trade India, Russia or Latin America or Korea matter fact the difference is like Eastern Europe is a cake walk.

Its a rewarding situation but its also a challenging one.

I made the comments above because we looked at some of the U.S. style deals going to china and just say this the manufacterers in the USA were kinda stoked at the comments. Serveral of them well are no longer with us. I hope all of these folks just learn from Corning, Bell Helicopter and Boeing that have been in this since the late 1970's back in the days it was still illegal to tip in china at a meal. China has come a long way its just more tricky today than when I was a kid!!

said by Pz_:

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I'm not trying to be a smart ass when I ask this, because I really want to know. What is Chinese business like?

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Complex politics are the two words I would use to describe it, especially when communications or defense is involved. China's economic dichotomy tolerates Hong Kong's free wheeling capitalism, but the same behavior elsewhere can result in the death penalty. The country is in transition,and Communism is evolving out of economic necessity. Our business began trade with China, and other far east nations in 1903. We exited those lines years ago and became a vendor to institutions in the financial sector. Some of our clients fund deals like this, and our government often guarantees the loans.

Communism doesn't define China, it's just a passing fad in comparison to thousands of years of culture, tradition, politics and trade. Chinese are nobody's fools when it comes to business.

said by jethrogump:

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Its a rewarding situation but its also a challenging one.

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And of course it has one of the most brutal, repressive governments on earth. I wonder if the victims would describe the situation as rewarding or challenging?

said by pupowski:

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Communism doesn't define China, it's just a passing fad in comparison to thousands of years of culture, tradition, politics and trade. Chinese are nobody's fools when it comes to business.

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Like the Spy Plane flap. That was a political game to them, but executed like a business deal. They came out well ahead on that deal.

I read somewhere that the Chinese government was not willing to admit to the HIV problem they have there. Reporting much lower numbers of infected people than there really are. I wonder if our government does that too.