The ‘auspicious eight’ for doing business in China

On 16 March 2018, I moderated a lively panel discussion for the fellows of AICD on the topic of navigating Asian investments. During that session, I shared some thoughts on doing business and engaging in transactions in China that summarise my previous posts, which you may find useful in the future:  

1.   New money - every Chinese billionaire and millionaire family you meet has created wealth in their lifetime, with zero inheritance.

2.   A foreigner will always be an outsider. There is a great degree of ethnic pride - one can only be born Chinese.

3.   Have Chinese interpreters and advisers who are proficient in the language, independent and commercially astute will exponentially improve prospect of any transaction.

4.   Do not use western logic in negotiations. Culture runs deep - whether it is Confucianism, communism or entrepreneurship, traditional philosophies have a strong influence over beliefs and interactions.

5.   Understand that the expression ‘I’m interested’ rarely means ‘let’s deal’. It is at best the beginning of a potential transaction.

6.   If dealing with a state-owned enterprise, be prepared for many meetings with different players, be upfront to maximise everyone’s time and make sure you have other options.

7.   If dealing with an entrepreneurial enterprise (a business founded by a private individual), only the founder and primary shareholder is the decision maker. No exceptions.

8.   Chaos reigns in China! It is how people thrive and succeed, so be adaptable to frequent change.