The right approach

Let us this time deal with general considerations, in order not to get wrong methods when you start doing business with China.

First, assume that what you think you recognize here is similar only at first glance. The culture, even if it gives the impression of a rapprochement with ours, especially in Shanghai, remains fundamentally different. Believe only the information you will get here, regardless of appearances.

The Chinese have a strong sense of group and network. Link up with them and doors will open. The opposite is also true : make enemies and you will be banned from the other members’ network, even for an independent business operation.

But do not think that a professional relationship is built at the same pace than in the West. A week of friendly discussions and a few nights out are not enough to create a strong professional collaboration. Chinese like to take the time to know their partners before doing business with them in a mutually beneficial relationship.

Linked to this last point, two other details are not to be looked down upon. First, do not underestimate the impact of face-to-face. The Chinese believe that coming in person to negotiate is a sign of respect and of your interest in the operation.

Secondly, do not act in emergency. "Time is money" has no place over here. Chinese use to make all phases of negotiation last for a while. While avoiding falling into an endless cycle of negotiation, do not try to rush by thinking that opportunities could pass you by. Take time for your due diligence and do not trust only recommendations or papers that you find during your first round of research. Indeed, sometimes the people your potential Chinese partner will present you have been bought, the books of accounts and audits are falsified etc. Take the time to check your contacts here and watch the details of the operations rather than rely on the testimonies or appearances of documents.

Opportunities come and go in China, but the pace is not the same than in the West, and China will still be there in several years, so do not try to rush things because you are afraid of missing the boat .