More on Joint Ventures

Filed in archive Mergers and Acquisitions on September 25, 2007

We talked a few days ago about the nightmares that can come with joint ventures in China. How do you avoid them? Dr. James Chan, writing for China Success Stories, has some Practical Tips on Working with a Chinese Partner.




Most of Chan's tips seem simple and obvious. But many Westerners doing business in China still manage to neglect them for some reason. An example: respect the business cards of a chinese partner. Exchanging business cards is the business version of a handshake in China. Look at the card. Keep it out for a few minutes before you slide it into a pocket or your wallet. And have plenty of your own business cards with you to give away when you go to China.

The list of tips (there are 18 in all) can be eye-opening. For example, never give a clock as a gift in China. And don't give men green hats. Chan explains why in his article. Other tips are easier to understand. The Chinese tend to be social first; then they do business.

My favorite tip is number 14. It deals with what it means when a Chinese person says "yes." It often means simply that they're listening - not necessarily that they are agreeing with you.

You can read all of Dr. Chan's tips here.