China Europe Trade
Most of China’s business with the outer world resides in the Yellow River basin, particularly in and around Hong Kong, Guangzhou and Guangdong provinces. For some one who has had an experience of trading in Europe, it should be relatively easier to adjust to the culture and demographical differences in China. Again, Hong-Kong should be the starting point for penetrating in to China because of the larger English speaking population that we have there.
Hong Kong is a city full of energy and passion, and there are a lot of similarities at the CEO levels between Hong Kong and some major parts of Europe. The main difference though is that, promises here are of lesser value, and promises made should not be taken for their word as traders can easily revert at getting better deals. Therefore, everything needs to be inked down after the corporate dinner and Binge drinking! The Chinese are relatively quick to make promises, but they should only be taken into account once the contract is through, because most of the time, they would not even remember the next day what they had promised.
Hierarchy also plays a prominent part in the way the Chinese carry out their business. The Chinese are totally bureaucratic and love to take into account the value of the signature. Assistants and lower level management have little or no say in taking the final decision, which are mostly reserved for those at the top of the lot. Therefore, you should use the lower level workers to network yourself up to the top of the pyramid to seal the deal. Unlike Europe, where employees at various levels, even at the ground-level have a say in the internal decision making of a corporation, in China, they might be fired for ‘poking their noses’ in the company’s internal affairs.
To be successful for trading in China, you need to network a lot. News and offers spread like wild fire here, and therefore, it is in your interest to make the best use of the grapevine to take your deal to those who matter the most. Versatility, public relations and networking therefore, are the pillars around which a foreigner needs to invest his time to be successful at trading in mainland China and Hong Kong especially.
Posted under Europe
This post was written by admin on October 17, 2008
