Doing Business in China Guide

Part 1

(whew!)

This is our latest series on doing business in China. In these posts, our advice will correspond to the thirty-six strategies designed by the ancient and great Song general and strategist Tan Daoji–that is, we predicate all this advice on never using the 36 strategies as a way to do business in China. We have bookshelves stacked full of expensive kindling labeled “how to do business in China” that we will later use to heat our house.

The first listed strategy is “Deceiving the Heavens to Cross the Sea,” or man tian guo hai(And no, it’s not a reference to a sea-going Dali clique). While the strategy typically involves deception and refers to an advisor who got the Emperor of the Tang Dynasty so drunk and engaged in feasting for three days that the ruler had no idea he was on a boat–akin to the Beijing guides who accompanied press on yesterday’s “Meet the Lamas” broadcast.

Instead of learning to deceive the heavens, your best bet to getting introduced to China is learning some Chinese. Among our billions of dollars of unread books, unopened CDs, and untouched lessons, here are some tools we actually used to learn the language and culture of China:

The Rosetta Stone: though sometimes maligned for its interface, we give props to the English-free interface of the program and its integration of reading of and listening to Chinese characters from the beginning.

FSI language courses: a full and free year’s worth of free Chinese language instruction. This is the stuff the diplomats used to use and despite that it is hands down a great free tool for helping people learn to pronounce and listen to standard Chinese.

Chinesepod: Have a random question about Chinese? Allergic to parsley? Unsure about a specific word for sports? Head for Chinesepod. With a vibrant community of online learners, free daily podcasts, and a great selection of different tools like flashcards and online lesson reviews, Chinesepod’s collective of learners deserves its rock-star status on the net.

Lost Laowai: As always, well crafted by Ryan; Canadian accent comes free of charge, aye.

Berlitz: The only “learn Chinese in 30 minutes!” that actually works.

The next step is to get some culture (God knows we could use a lot more):

Lost Laowai, offers up real-life experiences of expats in China. We are hoping for the reality show to displace “swin in China.”

The HaoHao Report, everyman’s aggregator with Digg-like China focused features.

Panda Passport: Everything about China cyberspace you wanted to know but were afraid you’d get busted for on an IP violation.

RConversation, the most harmonious blend of blogging and citizen journalism on the web.

CDT, all the news from China blocked in China.

ESWN, a blog that brings together news from the East and the West–not the best in its class, but rather a species by itself.

Global Voices: China. The World is Listening. Are you?

China Herald, all the news that fit for bandwidth.

Cal Poly MBA Trip, a blog from the MBA Program with no ballast to throw overboard.

Thomas Crampton, former correspondent for the International Hong Kong International Herald Tribune, Mr. Crampton shares on-the-ground and insider info about the latest web innovations and websphere happenings in Hong Kong and greater China.

Imagethief, named for his photography habits and not for any actual Interpol related activity, is the creator of such marvels as the Stupidvator. a blog to lightens the cargo of the China blogosphere.

China Rises: Journalist and great story teller Robert Johnson: The only chief corresponsdent in China with hand-written instructions and a GPS reporter locator given by Central Government for any coverage of Tibet the Olympics.

China Blog List: a comprehensive guide to the many blogs passing us in the night.

The Opposite End of China: Life’s a Riot, and this blog reports on it. Veteran journalist Manning is as good as it gets and still chooses to farm tomatoes along the silk road.

 More to come…

Books have been virtually replaced by blogs. But, puns aside, many of them showcase the transformative elements Pablo Neruda* suggests as essential to written art in Ars Magnetica:
“From so much loving and journeying, books emerge.

And if they don’t contain kisses or landscapes,
if they don’t contain a woman in every drop,
hunger, desire, anger, roads,
there are no use as a shield or as a bell:
they have no eyes and won’t be able to open them….”

Here I have I have tried to smooth the stubble of memory, share poetry, attempt humor, journal my social conscience, and reconcile my longings while shoutng to you in some far-off room. I leave here absolutely bewildered that anyone, other than my long-suffering friends, ever returned to listen. I am grateful you did.
Read the rest of this entry »

China: The Balance Sheet differs from most other books we have been reading in preparation for our 22 province journey across China for charity and understanding. China guides to business or living become obsolete almost before they are published. And most of the “expert” commentary on China gives the reader intellectual whiplash: The data contained in strategy texts is often conflicting or out-dated. To offset that problem, this text offers online resources for continuing information and is a testament both to the wisdom and commitment of the authors.

China: The Balance Sheet isn’t so much a book as it is a project that yielded enough information for a book. It is a collection of work, information, and analyses collected by the Institute for International Economics and the Center for Strategic and International Studies, and The Balance Sheet is rife with diverse demographics, like statistics about China’s graying population, as well as an informed political discussion on the Middle Kingdom’s long, curious relationship with Russia. Yes, its such dry reading that we carried an Internet canteen–interspersing the book with irreverent spoofs from Sinocidal to keep from humor dehydration–but every sentence, to drag out a metaphor, is an informational oasis for a Sinophile.

One of the more engaging elements of this book is its ability to maintain a separation from the standard strains of China fever: while the book delivers competent, clear information about mainland China, it avoids over-generalizations and makes clear the plurality and multiplicity of a country with 56 distinct ethnic groups, 200 spoken languages, and size enough to make Europe jealous. As Lucien Pye of foreignaffairs.org says of the book: “The main thrust of the analysis is that diversity has replaced the monolithic system that Mao Zedong created. There are, therefore, many Chinas — rural and urban, wealthy and poor, educated and illiterate, international and isolated.” And yes, seemingly benign statements like that one make it unavailable on the mainland, but censors should tale a second look as it is careful to avoid the paranoia about China’s growth that pervades Western news and doesn’t issue dark proclamations about China’s fearsome rise or apocalyptic fall. The book holds to tenets set forth in early pages: “Because we believe that constructive US policies toward China must rest, first and foremost, on a firm factual and analytical footing, this study’s primary purpose is to provide comprehensive, balanced, and accurate information on all key aspects of China’s own development and its implications for other nations.”

Will the Balance Sheet help you understand business culture in China and learn the secrets of guanxi, face, or how to hold your chopsticks at just the right angle to impress the Chinese delegation leader? No. Will the book arm you with a clear understanding of the economic, political, and demographic realities facing China now? Yes. You can find an overview and preview of the first chapter of the book here and a collection of 2007 published addendum’s here.

This ranks high on our list of must-read texts along with Harold Chee’s Myths.

By David DeGeest with Lonnie B. Hodge

My laohua (”OLD eyes”) ache: I am several chapters over the safe reading line this week. I have been capitalizing on my delays waiting for China transport ( I want part of my ashes scattered at the Baiyun airport baggage claim area as YEARS of my life will have been spent there and in similar public transport areas) as an opportunity to catch up on a three year backlog of books on China.

After nodding through two history books I was desperate for an easy quick read, so I picked up a thin tome in Hong Kong entitled, Myths About Doing Business in Asia by Harold Chee. It turned out to be so laden with information that I was a full week, from Thailand to Shanghai, finishing it.

While in Shanghai one of the administrators at the Smith School of Business told me of a multi-national company that was setting up a new branch in town. They were flummoxed by the myriad answers they received to the same questions from a platoon of “China Experts.”

It reminded me of the old tale of the elephant and the blind men who sought to describe it by touching its parts: It was alternately a wall, a tree, a spear, a snake, a fan and a rope rather than a pachyderm. No meta-view of the beast was literally, or figuratively, possible.

Well, good news: Myths….gives us a clear picture of the China elephant in our economic living room. Is easily the most sensible and direct guide to doing business in China I have read. First published in 2004 (I told you I was behind) it tackles such myths as:

• China is a market of 1.3 billion people
• The market is easy
• Chinese business people are not trustworthy, and a host of others…

In a review by The China-Britain Business Council Chee, and co-writer Chris West, are chided with: “there are handy pointers and suggestions, although the authors’ minds seem to be on other things when they recommend that, for meetings, “women should look smart but not too sexy.” They need to rinse the starch from those stiff upper lips as it is Chee’s straight-shooting style that makes this a worthy read. And before you think the book to be a literary set of patent leather shoes: it is rife with deft personal insights, but also well-researched data. I have already used information gleaned from the book to prepare two business plans for multi-nationals en route to China. Just an aside on the dress issue: If a woman wears anything remotely revealing or provocative in a business or educational setting her character will be judged, not by content, but by her appearance especially when dealing with older or rural Chinese people. “Nice girls” don’t do plunging necklines or visible bras, etc….. Cantonese have a love-hate relationship even with the “too sexy” stars of Hong Kong that they follow daily in the tabloids.

He writes without fear or favor for either side and makes it all too clear that it is essential for western managers to adapt to Chinese values and vica-versa. Our usual MBA-style, elitist approach to negotiations with Asians will only give the Chinese a strategic advantage. This is an essential read for newcomers, insiders and outsiders in the China. The book is best summed up by Beijing Management Institute’s Wang Xaoyu in a book jacket review: “An effective manual for all non-Chinese who plan to do business in China. The book digs out the essence of philosophy that Chinese people follow in their daily life.” Chee’s book should be a cultural course mandated into B-School programs of study.

Chee, a graduate in economics, “holds several masters degrees, and has studied at the London School of Economics, Essex, Kent Universities, and London University Institute of Education,” and teaches at the Ashridge School of Business in the U.K..

The seemingly simple lists in the Appendices alone are worth the buy: …key factors for dealing with the Chinese, and …key differences between China and the West are now tacked to my fridge door and will be staples in my future classes on Global Culture….

It is put out by Palgrave Press and costs about $275 dollars–Hong Kong dollars. I couldn’t resist….