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Apr 21, 2009

The Art of Doing Business in China - China Prime - Youtube of Today Show Interview

In a post from last year, The Culture Effect, I discussed the importance of viewing things in a "Chinese way". The Today Show interview with JWT China CEO, Tom Doctoroff, illustrates and reinterates the points made in my article. Trust being of utmost importance and along side it hierarchy.

Other seemingly superficial acts can destroy a potential relationship such as the business card exchange. In the US, we swap business cards daily and barely give them a second glance. In China, it is important to take the card with both hands and carefully review the information as shown in the video. Hierarchy and the importance of showing leadership are also touched upon in the interview. Charisma is important in dictating a sense of leadership.

Trust is the basis of all Chinese dealings and relates directly with guanxi. In order to develop a sense of trust, a true relationship must be formed and nurtured. While this might not translate into the Western version of friendship, it should be an integral part of the strategy of doing business in China.

This strategy has, of course, come under serious scrutiny due to the intense and overt corruption that can be found in all elements of Chinese society from the government to the local neighborhood. Therefore, it is imperative that meticulous steps are taken to avoid bribery and other non-kosher behavior.

Apr 15, 2009

The Right Way(s) and the Wrong Way(s) to Invest in China « ChinaLuxCultureBiz

Interesting article discussing the possibilities and risks of investing in China.

The Right Way(s) and the Wrong Way(s) to Invest in China « ChinaLuxCultureBiz: "The Right Way(s) and the Wrong Way(s) to Invest in China"

Apr 14, 2009

My del.cio.us bookmark cloud

Apr 2, 2009

Can China Save the World? Far Eastern Economic Review Weighs In

The recent announcement of China's stimulus package has raised hopes around the world that China will be able to bankroll the US and the rest of world. This article tackles the issues behind the downturn such as decreasing consumption--both on a consumer and merchant level. With more and more companies scaling back and laying off, the rate at which government spending can counteract these forces is likely to have little short term effect.

Consumers increased fear of markets creates additional dilemmas. The recent banking industry scandals has made some want to stash their money under their mattress rather than investing or depositing it. The Chinese have long had this fear which has led to high savings rates. It is likely even higher than actual estimates due to unreported "mattress savings". Individuals not spending is what further hinders the recovery process because it prohibits firms from spending. So a vicious cycle is in-process. The real question is "How do you restore confidence so that all people starting spending again?" And, not, spending on credit but with cash.

Apr 1, 2009

Who will China learn from now?

Who is China learning from now?
from China Rises: Notes from the Middle Kingdom by Tim Johnson
Here’s a little ditty making the rounds about China’s evolution over the decades:

Mao Zedong and the first-generation leaders decided to learn from the Soviet Union – and the Soviet Union collapsed.

Deng Xiaoping and the second-generation leaders decided to learn from Japan (East Asia miracle) – and Japan has been in stagnation.

Jiang Zemin and the third-generation leaders decided to learn from the United States (market economy) – and the United States is virtually bankrupt.

Hu Jintao and the fourth-generation leaders decided to learn from ... who's next?

What makes this comparison so interesting is that China hasn't collapsed, stagnated, or gone bankrupt. I think the ultimate lesson is that adaptability and flexibility are keys to running any successful entity.