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Listed here are some of the press comments published
w A Lesson in Chinese
w CHINAS LOVING HEART EXTENDS TO THE SOUTH WEST
w UK COULD BE CHINA 's TRADING GATEWAY
q A Lesson in Chinese
Those who saw the documentary about "Brits doing Business in China" recently, and may be considering entering the massive Chinese market, were no doubt amused, confused and scared of being abused.
As someone who has travelled extensively and carried out business with the Chinese for two years, I can state that the programme was a very accurate reflection of what it can be like doing business in the worlds largest market place. However, as the cushion manufacturer discovered, the Chinese are incredibly industrious and will pull out all the stops rather than loose face.
Loosing face is one of the great dilemmas when doing business with the Chinese. A Chinese businessman/woman would rather loose their front teeth than loose face. It is this Paradox in the Chinese culture which should always be at the front of your thinking if you decide to "go it alone" in China. Is this man telling me the truth or is he trying to save face. How can you discover before you commit? What can I do if he's lying.
Lying, now here's the second paradox. The Chinese can lie and look you straight in the eye. They actually don't consider this deceitful. Its their preference to loosing face. Either way it can make life very difficult during negotiations and many a venture has failed because the Chinese partner has not been totally honest from the outset. So how do you break into the worlds largest consumer market or import quality products from a reliable source.
One way is to use an intermediary who understands the culture and can speak the language. Someone who is well connected in government circles and who has a wide network of trusted contacts with whom he/she has Guanxi (pronounced gwanshee)
Guanxi is the next lesson to be learned about the Chinese. When you develop guanxi, you move to a more level playing field. You can start to rely on your Chinese partners word and you can start to trust him/her. There is no direct translation in English, but the best way I can describe it is developing a Trusting Relationship. Within their own companies you will find that the Chinese do not need to worry about developing too much guanxi as they often employ their families to work for them and manage departments. Families are very important in Chinese business as it's the way they avoid being "ripped off". However, when they do business with other companies, whether western or Chinese, they always try to develop guanxi as a way of avoiding being taken to the cleaners. No pun intended, (Chinese laundry and all that.)
As with any relationship, it develops through contact, engagement and most often in China, socialising. This latter aspect is the Chinese secret weapon. They love to socialise and no business deal is conducted without the Chinese Banquet. Irrespective of time of day, there will be a banquet where copious amounts of food and drink is consumed. 20 dishes is not unusual and litres of their favourite liquor, Baijiu (pronounced by-joe) The Chinese hold anyone who can drink like Oliver Reed but remain coherent, in high esteem. I'm revered amongst my Chinese colleagues. Years of practicing with Malt whiskey has finally paid off. Anyone who does not enjoy alcohol is at a distinct disadvantage in China and should seriously consider using an associate/agent to join in with the game they like to play called "Getting the westerner drunk".
On our most recent trip to China, I have to admit to succumbing to their game and loosing. And here's lesson 4. Don't agree to a deal signing meeting on mornings. Afternoons are much safer. If they have entertained you the evening before, you will not be at your best the following morning. Another strange paradox about the Chinese, they can be much the worse for drink in the evening but still be up early and ready for business the next day. Must be something in their metabolism, but whatever it is it gives them a distinct advantage over most westerners and one which they exploit.
Last year, China took over from the UK as the world 4th largest economy and many of us who travel to china frequently and witness the "cash-economy" for which no statistics exist, would argue its already the 2nd largest economy and fast catching the US. There are massive opportunities for UK companies to make money. Whether its entering into a joint venture to manufacture products and sell into the massive Asian market as well as import into Europe, or invest in ventures in China like the Private Hospital Project we are currently working on, or simply importing components and carrying out the assembly and quality checks in the UK.
One aspect about importing which deters many smaller businesses is the amount which they believe they have to buy to make the project cost effective. However, this is not always the case. Importers such as ourselves can bring in part containers or even coordinate your requirement with other companies and source from the same supplier thereby making up a full container. Many would-be importers are also put off by the logistics. Shipping, insurance, customs and freight. Its true this can be very time consuming and stressful. Then theirs the big concern, payment. How do I know I'm going to get what I ordered. That's where import agents really make the difference. END
q CHINAS LOVING HEART EXTENDS TO THE SOUTH WEST  Go top
An Exeter based company has been awarded a contract by the Chinese Government to develop a strategy to deal with their emerging demographic crisis.
Sino-British Consultants Ltd have been appointed by the Chinese Government to help formulate a strategy and introduce UK based companies to develop a "Care for the Elderly" system based on the UK model.
Chairman of Sino-British, Brian Thornton, who many will know from his involvement with the Exeter Chamber of Commerce and the Devon & Cornwall Business Council, has recently returned from a visit to Beijing where the contract was signed.
Brian commented "Since Chinas inclusion into the World Trade Organisation (WTO) the Chinese Government is keen to promote social welfare projects as well as business expansion projects. The "Loving Heart Project" is one such welfare project and is one of the most important in mainland China at this time.
China is conscious that like most countries in the world, it has an aging population who are living longer. Many of these people will in the future, require suitable accommodation and in many cases nursing care. The Loving Heart Project is set to address this issue. The one child per family policy has exacerbated their problem. Typically there are now four aged person to every couple usually with only one child. So it has become a serious societal problem. It is estimated that there are currently one hundred fifty million aged persons in need of sheltered accommodation and care.
The project is fully supported by both the national and regional Government throughout China and the project is being vigorously promoted through public resources including generous incentives and tax breaks to foreign investors.
"We were very impressed by the commitment shown by the government over this issue, as well as senior officials, the brother-in-law of a Government Minister came to witness the contract signing." Added Mr Thornton.
q UK COULD BE CHINA 's TRADING GATEWAY Go top
At the recent World Economic Forum in Davos the Director-General of the CBI, Sir Digby Jones, compared the openness of China for UK traders favourably with the arbitrary protectionism being increasingly imposed by the United States . The current threat to the huge Rolls-Royce supply contract to the US Department of Defence being further evidence that the supposed "Special Relationship" seems to count for little in the material rough and tumble of UK/US transatlantic trading activity.
Surely Sir Digby is correct in seeking to turn the attention of UK business venturers eastward - toward what must now be the world's most dynamic, if not quite yet the largest economy in the World – i.e. that of the Peoples' Republic of China. After all, our two countries' have enjoyed a long history of successful commercial trading – including continuing mutual interests in the international gateway of Hong Kong .
Furthermore, the UK has demonstrated its political good faith in returning the Hong Kong Territories to the Chinese government honourably and promptly upon the expiry of our lease. This act of good faith ensured our ongoing good working Sino-British relations. China's hostility toward the USA's support for Taiwan and the lingering historical tensions over the past conflicts with Japan , surely enhance our opportunity.
The best trading relationship is one based upon well-tested mutual trust and respect, "guanxi" as the Chinese refer to, and which delivers rewards to both parties. In this context the UK has a proven track record in facilitating two-way Sino-European trade in both goods and capital finance. The comprehensive facilities offered by the City of London being of particular significance.
As China 's economy continues to grow, many companies and individuals will be looking for safe-havens for their new found wealth. So, does not the UK presently have the opportunity to cease lamenting the geographical loss of the Hong Kong territories, the threat to our manufacturing base and, instead – in this globally electronic era, to now re-establish itself as China 's principal trading and investment gateway here in Europe?
Yours faithfully,
Brian Thornton
Chairman
Sino-British Consultants Ltd.
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