Winning business and gold in Beijing in 2008
What do a Bee Keeper from rural NSW and a Brisbane pilot trainer have in common?
They are among 12 small business owners from around Australia making a special export mission to China during the Olympic Games. They're all winners of the Win Business Gold in China competition launched by Telstra and Austrade to help Australian small businesses build export contacts during the Beijing Games.
The winners all came to Sydney last week to hear directly from key Austrade representatives who have first hand experience of doing business in China. All 12 businesses came away so excited about the trip and what it means for their business.
Austrade have a great program going in the lead up and during the Olympics to help businesses. Check out the website About Business Club Australia (www.austrade.gov.au) to find out more.
During the session last week the winners heard some great tips about doing business in China.
Here are a couple of my favourites that I have heard there and from other friends and colleagues
- In the major cities, there are many vacant units, some of a very high quality. The owners are usually working overseas or interstate and are weary of renting the units to locals for fear of never being able to evict them if they decide to overstay. Expect to pay one tenth of the cost of a much smaller room in a hotel of equivalent standard.
- Mobile phones seem to be the current attraction for the monkeys. Apparently, ringing the stolen phone only makes them take it further into the forest.
- Present your business card with both hands. You must study your Chinese colleague’s business card while saying "ho ho" and under no circumstances should you ever stash it in your back pocket.
- When addressing a formal representative, it is expected that you address him with one rank higher than he actually is.
- Timetable is strict. Lunch is at 12:30, dinner at 18:30. Don’t refuse an invitation. You don’t have to finish all the food on the plate, but it is expected that you at least taste everything. The Chinese love to drink, so join them.
- Chinese businessmen love Karoke .You could say no, but it’s a wonderful opportunity for getting to know each other. If you don’t speak Mandarin well, bring a Karoke CD with English songs that you enjoy.
- Never joke about the Chinese government or about China having more boys than girls. Want to have small talk? talk about food, family, cars and ice-cream. The Chinese would always prefer Chocolate ice-cream.
- The power centres in China are - the civilian clergy, the communist party and the army. When negotiating and signing deals, have members of those power centres be present and involved.
- Employment comes before profit. Better to offer more jobs than offer better deals.
- Keep the negotiations in harmony with the other side, and control your emotions. It is advisable to know the word "Guanxi" which most westerns think means "bribe" but actually talks about mutual commitment towards each other with in the business relationship.
- There is no tipping at all in China.
If you want to get some other fun tips I found this great site China Daily and Fun (www.chinasnippets.com).
I hope these tips might help your business and keep you out of trouble.
To conclude - there’s a common belief that if you make a tactical mistake with the Chinese due to cultural differences, then it means you’ve probably lost your chances for doing business together. That’s not true. The Chinese understand that you’re not Chinese and that you’re not totally familiar with their ways, so that they will be very pleased with any effort that you make to understand their culture. They have a lot of tolerance towards what they affectionately call "foreign daemons" or "big nose". Foreigners amuse them.