10 tips on doing business in China here: http://www.hongdaservice.com/blog/10-tips-on-doing-business-in-china Today, China has become a place that business people from all over the world have recognized as one that they simply have to figure out how to do business in. It is a vast land of opportunity that is continuing to shape the entire world's hold on business. In the face of increasing pressure of a slowing economy, its ongoing dedication to experimenting with new free trade zones such as Shenzhen's Qianhai New District, Guangzhou's Nansha, and Zhuhai's Hengqin shows China's willingness to try new things. The government and its continued relaxing of corporate policies and the signing of massive trade deals with key countries is helping to foster international relations and lay the foundation for greater business cooperation and promote greater foreign investment. This being said, doing business in China is definitely not as black and white as one would expect from doing business in other parts of the world. The opening up of China has made navigating cross-cultural relationships more important than ever before, and that's why there are so many China experts writing about the subject. One such person is Mia Doucet, a sales strategy consultant and author of award-winning China in Motion. In this blog we will take a look at 10 tips that she shared about doing business in China and I'll leave you with my thoughts on each one. The publication is based on 1,000 hours of candid interviews with Asians, exploring the hidden cross-cultural and communication factors that cost Western businesses untold millions with Asian customers and suppliers. Join me as we dive a little deeper into the advice, and see how relevant it is today!

1. 10 tips on doing business in China
www.hongdaservice.com /blog/10-tips-on-doing-business-in-china
Lessons from the author of China in Motion
Today, China has become a place that business people from all over the world have recognized as one that they
simply have to figure out how to do business in. It is a vast land of opportunity that is continuing to shape the entire
world's hold on business.
The government and its continued relaxing of corporate policies and the signing of massive trade deals with key
countries is helping to foster international relations and lay the foundation for greater business cooperation and
promote greater foreign investment.
This being said, doing business in China is definitely not as black and white as one would expect from doing
business in other parts of the world. The opening up of China has made navigating cross-cultural relationships more
important than ever before, and that's why there are so many China experts writing about the subject.
One such person is Mia Doucet, a sales strategy consultant and author of award-winning China in Motion. In this
blog we will take a look at 10 tips that she shared about doing business in China and I'll leave you with my thoughts
on each one.
The publication is based on 1,000 hours of candid interviews with Asians, exploring the hidden cross-cultural and
communication factors that cost Western businesses untold millions with Asian customers and suppliers. Join me as
we dive a little deeper into the advice, and see how relevant it is today!
Tip #1:
Never underestimate the importance of existing connections. You need to be dealing with a Chinese person of
influence. If that person feels you are trustworthy enough, and if they can get their network of contacts to trust you,

2. there is a chance you will succeed. Asians want to do business with people they trust. But there is no real trust
unless a person is in their circle. At first, they don’t know if you will be a good partner. Show respect by keeping
some distance. Focus on building the relationship before talking business. Do not go for big profit on your first
contract.
My thoughts: A few things to discuss here. I firmly believe that the success of a lot of foreign companies/individuals
looking to expand in China is dependent on finding (and convincing) the decision maker of a local company of their
value, and this is especially true for startups. When it comes to leveraging ones existing contacts on the ground, it is
definitely a good idea to befriend people of influence in your industry. These type of people are your way in for
reaching a much larger, much more useful network that will bring better business opportunities your way. The trust
issue is a real thing, and it will have to be earned if you want to establish strong relationships with people that
actually matter. The Chinese are not as direct as many foreign business people I have met, so it pays to focus on
really getting to know your counterpart to help establish a rapport before getting to the 'business' at hand.
Tip #2:
To protect your intellectual property, use the same due diligence you would in the West.
My thoughts: I can not stress enough how important this is in today's world. IPR issues and misappropriation is
something that China is now famously infamous for. Company’s should take the utmost caution when first starting
operations on this side by registering their trademarks.
Read our blog on protecting your trademark here!
Tip #3:
Never pressure your Asian colleagues for a decision. To speed up the decision process, slow down. Start from the
beginning and work through to a solution in a logical, step-by-step fashion. Then stand your ground.
My thoughts: I think that the key thing here is to understand that nobody likes to be pressured into making a
decision, not just Asian people. If you want to work in harmony with your colleagues/potential clients, its important to
take some time to solve problems as it will also reflect on your ability to cooperate with them. Rather than add fuel to
a fire, take a step back and work on a solution (even its only temporary) to help save you time. Address your
concerns afterwards and do what is necessary then to ensure the same problem doesn't occur again.
Tip #4:
The negotiation process will be anything but smooth. Your best strategy is a walk away mentality. You have to go in
trying not to make the deal. Explain your position in clear, concise words. State your terms clearly. Respectfully.
Then be prepared to walk away if your terms are not met.
My thoughts: I’d say that maintaining this type of approach when negotiating is clearly a good way at implementing
a ‘my way, or the highway’ strategy, but I’d argue that going into a meeting like this may lead to one missing great
opportunities to cooperate. Obviously everyone has a limit as to how much they are willing to bend, but sometimes it
does help to meet your counterpart halfway. This can be achieved by making up for certain ‘giveaways’ in other
parts of your business all for the sake of fostering a better business relationship at the end of the day.
Tip #5:
Respect face. Never argue or voice a difference of opinion with anyone—even a member of your own team. Never
make the other person wrong. Never say “no” directly, as that is considered rude and arrogant.

3. My thoughts: This is one of the things that almost everyone writes about when discussing business in China, and
for good reason. The concept of ‘face’ is deeply embedded within Chinese culture and is something they attach a
huge amount of importance to. Once again here it is a thing of taking a step back and discussing your views in a
way that is a little less direct. This will go a long way to ensure that you help your counterparts or colleagues to save
‘face’, and it will to create a more favorable working environment. If there is something on your mind that truly needs
to be addressed, it is wise to take it up with the person in question behind closed doors. Business in China does
come down to trust and perhaps more importantly, respect.
Tip #6:
Account for the fact that most Asians understand less spoken English than we think they do. The easiest thing in the
world is for a Chinese to say yes. Their smiles and nods have more to do with saving face than getting your
meaning. Talk in short sentences. Listen more than you speak. Pause between sentences. Find four or five easy
ways to say the same thing. Never ask a question that can be answered with a simple yes. Avoid all slang. Skip
humour altogether.
My thoughts: It is important for you to read each individual situation as the people you are dealing with will all be
different, their level of understanding will be different, and you may find that meetings can be conducted in English
without any difficulty. However, to avoid problems that may arise from miscommunication, its advisable to ask as
many questions as possible and clarify every bit of important information in written form. Following on with the next
tip below, it is also a good idea to present any questions you may have in written form, and make amendments to
ensure that everything is clear in contracts you sign with each other.
Tip #7:
Manage the way you present written information. Document everything in writing and in precise detail. Present your
ideas in stages. Write clearly, using plain English text. In order to appeal to Asian visual bias, use sketches, charts
and diagrams.
My thoughts: Everyone can relate to visuals. Obviously it will help to make sure that the visuals are accompanied
by clear, plain English text that helps drive home the point you are trying to make.
Tip #8:
Prepare for every interaction. Do not count on your ability to wing it. A lack of preparedness can cause loss of face
and trust. Do not give or expect to receive partial answers from your Chinese colleagues, as that is considered
offensive.
My thoughts: I'd honestly say from my own experience that winging it is almost certainly not the best way of
showcasing your capabilities when it comes to closing a deal. No matter how experienced or 'good' one thinks they
may be, anyone that you want to be doing business with will probably have done their homework on you and your
company, so do them the same courtesy. Always be prepared no matter what. It is a reflection of your business
ethic, and it will help to show your counterparts how committed and thorough you are.
Tip #9:
Make sure your facts are 100% accurate in every detail, or you will lose credibility. Do not present an idea or theory
that has not been fully researched, proven, or studied beforehand. If you make a mistake, you are not to be trusted.
My thoughts: Trust seems to be a recurring theme in this list of tips, and I'd have to say that it is pretty much the
same all around the world. However, it is perhaps more pertinent in China due to the bad rap that Chinese goods
and services receive in the eyes of foreigners, and actually trust works both ways. For the tip above, I think that one

4. should always prepare as if you are pitching to a multi-million dollar company. Leave no holes or weaknesses for
your counterparts to expose. It is exactly the same if Chinese companies pitch to foreign clients. Trust is something
that needs to be mutual at the end of the day.
Tip #10:
Everyone on your team needs to know how to avoid costly gaffes. Most of us are not by nature sensitive to the
differences in culture—we have to be taught. Time-honoured passive resistance could bring your company to its
knees. It makes sense to teach people the cross-cultural factors that have a direct impact on your profits.
My thoughts: This is definitely one of the things that has to be negotiated with the utmost care. There are many
cultural subtleties that foreigners are unaware of that may make the difference between an okay meeting and a
successful meeting. Just as you'd appreciate your counterparts taking the time to understand you, your effort is
appreciated and understood as respect.
That's it for the breakdown of these great tips for doing business in China. There are certainly a lot of things to be
said on this subject, but really, I do feel that China is on the fast track to accommodating even more foreign business
and investment, and as this continues to happen the Chinese themselves will begin to adapt to the 'foreign' way of
doing business. It is only a matter of time...
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