The Chinese dragon has not only woken up but is also moving aggressively to dominate the world business economy. With its annual GDP growth exceeding 9%, China has suddenly become the business destination of the mighty and rich multinational business corporations. China offers great business opportunities to a large variety of businessmen and therefore business travel to China is a must for every business executive.
Although China offers great business promise, there are certain factors you need to keep in mind before planning a business trip to China. While traveling through China, you may have to face the language barrier in communicating with the Chinese - starting with the cab driver to the hotel manager and ending up with your counterparts in your business. English, though the lingua franca of the world, is usually neither spoken nor understood in China.
Beijing, Xi’an, Shanghai and Guangzhou are the main business destinations - besides numberless other smaller places. It is therefore advisable to contact a travel agency that specializes in China tours in these cities, and book a suitable hotel for you as per your budget.
The first important item to deal with is the language problems. For that you need an English-speaking guide as soon as you land in China. You should make sure that your travel agency provides you an English speaking cab driver who will be the first man to meet you as you step out of the airport. A non-speaker of Chinese cannot move about China without a guide. Therefore you need a guide who has thorough knowledge of the topography of the area you are visiting and can fluently communicate with you in English. You must ensure that the guide you get is professionally trained and certified by the China Travel Administration.
Two more pointers: first, protect your credit card from fraudulent activity, which is widely prevalent in China. Second, you must be aware that you cannot drive a car in China even if you are a licensed driver in your country. So you have to rent a car along with a driver for travel around the city.
Business Travel provides detailed information on Business Travel, Business Class Travel, China Business Travel, Business Travel News and more. Business Travel is affiliated with Corporate Travel Agencies.
Friday, June 12, 2009
China Business Travel 101 (by Sarah Fairfax)
Ever wondered if you could deal directly with manufacturers... in China?! It's easier than you think.
First Impressions:
I visited China in Autumn 2005 with a group of business associates and must admit that I was amazed, both by the warm reception we received wherever we went, and at the factories we toured. Having never been there before, and having only news accounts of “difficulties” between China and the U.S. to fuel my imagination, I assumed things would be overly formal and official at best… at worst, cold… and we would be “watched” constantly. I was so wrong on both counts. We were treated as welcome visitors and had only to ask the hotel staff for something to have it almost magically produced.
Lost in Translation:
Outside of the hotels and manufacturing facilities, doing business in the streets and in small shops was, at most times, terribly difficult. We had arranged our factory visits and business meetings with our contacts in China, and there were no problems on that side when it came to language. But once we stepped out on our own, we rarely found anyone – even in tourist gift shops – who could communicate in English at all. Next time I visit China, I’ll hopefully be armed with a few more basic Mandarin phrases, but for everyone visiting, even just for leisure, I’d recommend hiring translators to assist you.
Cash in China:
Another word of warning: business owners back home in the States may be suitably impressed by your Gold Card, but to the Chinese shopkeeper it's just a pretty piece of plastic that won't buy a cup of Chinese tea. Even in the large cities, you’re going to have to carry around Chinese Yuan (aka Renminbi) in cash if you want to be able to go shopping or eat at a restaurant. I have to say, the upside of this is that you won’t find yourself going over budget. But with the incredibly low Chinese retail prices, that probably wouldn’t happen anyway.
Low Retail Prices:
Once you've overcome the communication difficulties you'll be amazed to find the bargains you'll find in the small shops. For a start, it's an electronics paradise. Just make sure you do your homework on what will and won't work back in the States. Of course it is easy to load yourself up with personal purchases, but the real value is getting even more ideas of attractive products to start selling back home.
Factories in China:
Our visit to a manufacturing plant in Huizhou left us all . . . well, 'impressed' hardly seems like a strong enough word. The building, on the outside was sort of drab looking with banners hanging here and there but inside was quite a different story. First of all we were treated as if we were VIPs instead of mid-level managers from Kenosha. Most importantly, however, the level of automation in this factory was remarkable, even by American standards and, when you look at the numbers, you see that the productivity is really impressive. It's no longer a mystery to this American why China is finding such a willing market in America.
Back Again:
I wish I had more than the seven days we were able to stay in China, but it won’t be long before I’m back, this time with a group of my friends who have been listening to me talking about the business opportunities since I got back… and who now want to go out there to get a piece of the action for themselves.
Sarah Fairfax visited China 2005 and sent this testamonial to Chinavasion. For free information on how you can go to China and start buying direct from chinese suppliers visit this site: http://www.chinavasion.com/travel.php
First Impressions:
I visited China in Autumn 2005 with a group of business associates and must admit that I was amazed, both by the warm reception we received wherever we went, and at the factories we toured. Having never been there before, and having only news accounts of “difficulties” between China and the U.S. to fuel my imagination, I assumed things would be overly formal and official at best… at worst, cold… and we would be “watched” constantly. I was so wrong on both counts. We were treated as welcome visitors and had only to ask the hotel staff for something to have it almost magically produced.
Lost in Translation:
Outside of the hotels and manufacturing facilities, doing business in the streets and in small shops was, at most times, terribly difficult. We had arranged our factory visits and business meetings with our contacts in China, and there were no problems on that side when it came to language. But once we stepped out on our own, we rarely found anyone – even in tourist gift shops – who could communicate in English at all. Next time I visit China, I’ll hopefully be armed with a few more basic Mandarin phrases, but for everyone visiting, even just for leisure, I’d recommend hiring translators to assist you.
Cash in China:
Another word of warning: business owners back home in the States may be suitably impressed by your Gold Card, but to the Chinese shopkeeper it's just a pretty piece of plastic that won't buy a cup of Chinese tea. Even in the large cities, you’re going to have to carry around Chinese Yuan (aka Renminbi) in cash if you want to be able to go shopping or eat at a restaurant. I have to say, the upside of this is that you won’t find yourself going over budget. But with the incredibly low Chinese retail prices, that probably wouldn’t happen anyway.
Low Retail Prices:
Once you've overcome the communication difficulties you'll be amazed to find the bargains you'll find in the small shops. For a start, it's an electronics paradise. Just make sure you do your homework on what will and won't work back in the States. Of course it is easy to load yourself up with personal purchases, but the real value is getting even more ideas of attractive products to start selling back home.
Factories in China:
Our visit to a manufacturing plant in Huizhou left us all . . . well, 'impressed' hardly seems like a strong enough word. The building, on the outside was sort of drab looking with banners hanging here and there but inside was quite a different story. First of all we were treated as if we were VIPs instead of mid-level managers from Kenosha. Most importantly, however, the level of automation in this factory was remarkable, even by American standards and, when you look at the numbers, you see that the productivity is really impressive. It's no longer a mystery to this American why China is finding such a willing market in America.
Back Again:
I wish I had more than the seven days we were able to stay in China, but it won’t be long before I’m back, this time with a group of my friends who have been listening to me talking about the business opportunities since I got back… and who now want to go out there to get a piece of the action for themselves.
Sarah Fairfax visited China 2005 and sent this testamonial to Chinavasion. For free information on how you can go to China and start buying direct from chinese suppliers visit this site: http://www.chinavasion.com/travel.php
China Business Negotiation - Understanding the Culture (by Walter Johnson)
Business negotiation in China can be very a frustrating exercise for western business executives. The Chinese business culture and deliberate style of negotiation is vastly different from the more direct western approach.It is easy to lose perspective and patience and ultimately fail in reaching the desired agreement.
European and American business men and women are accustomed to a straight-forward style of negotiation. Both parties generally agree on the objectives and attempt to take a direct path to reach those goals in the shortest time possible.
Business negotiations in China require a much more patient approach. The Chinese culture makes the people suspicious of strangers, both Chinese and foreign, but especially foreign business men and women. The initial meetings in any negotiating session in China may seem to be going nowhere, but this time is required for establishing relationships and, ultimately, the trust of the Chinese participants. Personal relationships are the key to business success in China.
The final decision maker in a Chinese company is the man at the top. He will get involved in issues at a level lower than most western CEO's would ever consider. Unless dealing with a small company in China, with an owner/manager, the decision maker usually will not participate in any negotiating sessions. Final positions of the Chinese side on any proposal will be reached at private meetings and then returned to the negotiating table later. Hence, the term "we"ll consider it" will be heard frequently and means "we must talk to the boss."
There are several cardinal rules in negotiating in China:
* Don't say or do anything to embarass the Chinese participants and cause them to lose "face."
* Don't point your finger or any sharp object such as a pen or pencil at anyone.
* Don't lose your temper and raise your voice.
* The lead Chinese negotiator gains "face" from his boss if he wins the negotiation. Structure your negotiating position to help him do so.
For additional information, please visit http://www.doingbusinesschina.com/
Successful business negotiation in China requires patience and appreciation for the Chinese business and social cultures. The Chinese will not adapt to western ways soon and failure to understand and adopt their practices can doom an otherwise successful venture.
This article is written by Walter Johnson, an Associate of PATWORKS, LLC., China consultants for sourcing, manufacturing, project management and China business practices. For further information about PATWORKS services, please visit http://www.patw-china-consultant.com/
European and American business men and women are accustomed to a straight-forward style of negotiation. Both parties generally agree on the objectives and attempt to take a direct path to reach those goals in the shortest time possible.
Business negotiations in China require a much more patient approach. The Chinese culture makes the people suspicious of strangers, both Chinese and foreign, but especially foreign business men and women. The initial meetings in any negotiating session in China may seem to be going nowhere, but this time is required for establishing relationships and, ultimately, the trust of the Chinese participants. Personal relationships are the key to business success in China.
The final decision maker in a Chinese company is the man at the top. He will get involved in issues at a level lower than most western CEO's would ever consider. Unless dealing with a small company in China, with an owner/manager, the decision maker usually will not participate in any negotiating sessions. Final positions of the Chinese side on any proposal will be reached at private meetings and then returned to the negotiating table later. Hence, the term "we"ll consider it" will be heard frequently and means "we must talk to the boss."
There are several cardinal rules in negotiating in China:
* Don't say or do anything to embarass the Chinese participants and cause them to lose "face."
* Don't point your finger or any sharp object such as a pen or pencil at anyone.
* Don't lose your temper and raise your voice.
* The lead Chinese negotiator gains "face" from his boss if he wins the negotiation. Structure your negotiating position to help him do so.
For additional information, please visit http://www.doingbusinesschina.com/
Successful business negotiation in China requires patience and appreciation for the Chinese business and social cultures. The Chinese will not adapt to western ways soon and failure to understand and adopt their practices can doom an otherwise successful venture.
This article is written by Walter Johnson, an Associate of PATWORKS, LLC., China consultants for sourcing, manufacturing, project management and China business practices. For further information about PATWORKS services, please visit http://www.patw-china-consultant.com/
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