For the Chinese, the first face-to-face meeting is game time. Beneath the friendly hospitality, you are being watched intently. They want to know what kind of foreigner you are.
As they say, familiarity breeds contempt, and the Chinese, in the major cities, have become very familiar with foreigners (less so in the second- and third-tier cities, but there you will encounter stereotyping based on what they have heard about foreigners and how you deal with them).
Be on time
The schedule should specify all details from when you will have breakfast to when you will leave the hotel. There will almost always be an opportunity to return to your room after breakfast to pick up your briefcase and materials so no need to bring them with you. As an aside, you as the boss should carry nothing other than your cell phone and business cards, the people with you should carry everything else. Gifts are presented at the farewell diner or when you leave. They do not need to be expensive – company key chains or pens are fine. If you like the boss, a bottle of premium liquor or box of American cigarettes is generally welcome. Be aware, many Chinese smoke like chimneys, so be prepared. If you cannot stand smoke, say you need the windows open because you have allergies, it is a subtle way of getting the message across. Feel free to eat fruit in front of you at any time. If you need to use the facilities, ask your translator to indicate you need a break and take you to the WC. Always have tissues in your pocket as you may need them.
Exchanging cards
When you enter the room, wait to take your seat until after the exchange of business cards. Your business card should be two-sided with a Chinese translation on the back. Make sure you use a good translator when creating your cards; there are many stories about unfortunate translations. Present and receive cards with two hands. One suggestion is to line up the cards on the table in front of you in the same seating order as those sitting across from you. It is not considered polite to write on someone’s card. If they are not provided, make sure your translator has extra scratch paper and a pen.
Translators
There are several levels of translators. The most highly trained are simultaneous translators, who translate as you speak, but they are not desirable for a business meeting. Your translator has three functions, translate for you; monitor the accuracy of the other translator and take notes on the meeting. They should always have a notebook. After the meeting, you need to debrief with them as to the quality and accuracy of the other translator and their sense of the communication flow. Just because there are two translators, never assume that what is being said is being communicated properly. Remember, although Mandarin is the official language in China, not everyone there speaks it, and even if they do, they may not be fluent. Unless you are in one of the larger cities, the people you are dealing with may be using a local dialect and, if so, they may be translating between the dialect and English to you, while their boss is listening in Mandarin. As emphasized, do not assume that just because he is the boss, his Mandarin is perfect. The older they are, the less likely that will be. The quality of translators varies widely, so do not assume that the company you are dealing with has chosen a competent one. Pay very close attention to this issue. The only reason to have a face-to-face meeting is to enhance communications, and the last thing you want to do is to create more confusion.
The agenda
The agenda should be specific about topics and time. In your meeting prep, you should have sketched out what you wish to accomplish, what you intend to say and, as said before, it should be rehearsed with your translator and team prior to every meeting. After the exchange of business cards, the next order of business is the exchange of pleasantries and then the formal introduction of their company, which may be a PowerPoint or multimedia presentation by one of their staff. Thank them for the presentation and for working collaboratively to prepare the detailed agenda. Mention that you and your staff have prepared for the meeting and look forward to the discussion.
The power question
This is a good time to ask directly whether decisions can be made by the person sitting opposite you or whether there are others who need to be consulted. Use the “I am a foreigner” gambit in which you explain that in the United States things often are run by committee, and you want to know if this applies to their company. Listen carefully to the answer and look at the body English of the person who answers. It should give you a very good idea of how you should treat the meeting. If the answer is vague or negative, you should turn the speaking duties over to your No. 2 and just sit back and watch. This makes it clear that you will only engage in the process when there is someone at the table who can make decisions. Make sure you work this out in advance with your team.
Company introduction
You should use a snazzy multimedia presentation to introduce your company. Most Chinese think of Western companies are technologically advanced, and you do not want them to think they are talking to the only one who isn’t.
The meeting begins
The meeting begins in earnest as soon as you finish your introduction. At this point, assuming you are sitting across the table from the boss, you need to size the situation up and figure out how you want to approach the meeting content: all business and stick to the schedule or warm and fuzzy, in an effort to try to get to know more about who you are dealing with.
Some things to remember
Do not expect any visual feedback from across the table. Head nodding and facial expressions are not generally part of the game. Think of it as more like poker. Use the same approach yourself.
Speaking etiquette
You must wait until the other side has finished talking, even if it sounds like they asked a question. It is impolite to interrupt someone before they finish speaking … Count to five Mississippi after they have stopped, before speaking. Keep note paper handy so you respond to each of the points they raise, verbally confirm each point and give your answer.
Saying no
There are a thousand ways of saying no without saying no, and it’s best to use them liberally. If they make a proposal you do not like and/or want to talk about, tell them that you are unprepared to respond and you will need your staff to study it so it can be discussed “next time.” This also works when a new topic is suddenly added to the agenda or when confronted with the “dogged insistence” ploy.
Pressure tactics
If they try to use pressure tactics, use them against them by outlining terms wildly favorable to yourself, as the only way you could agree on such short notice. This advice cuts both ways, so do not think they are going to roll over just because you push them.
No MOUs
One of the items which usually comes up (generally as part of the “dogged insistence” ploy) is the signing a memorandum of understanding (MOU). My best advice is don’t do it. MOUs are minefields which will be interpreted by a Chinese court based on what was written in Chinese, and they generally serve no purpose, so why sign one? Leaving a trail of MOUs is not productive, necessary or smart. One answer is to tell them that if a deal can be worked out, the MOU will not be necessary or if that is not in the cards, tell them that you will submit the proposed MOU to your lawyer and get back to them as soon as possible.
Have a complete game plan
Be prepared. You must have a complete game plan going in, including what you want, how the financial and verification terms will be handled and what you are willing to pay. Too often, people come to China on unspecific fishing expeditions and they rarely work out.
While capitalism has only returned to China in the last 30 years, for 5,000 years, the Chinese have been successful traders, and that knowledge has never left, so trying to outwit them may not work out the way you plan.
At the end of the day, if you are taking the trouble of going to China, you should have more than a one off-deal in mind. You need to concentrate on finding the right people and companies. I have rarely seen a deal which is not fair to both sides working out very well for any length of time in China – or anywhere else, for that matter. n
Next week: Creating a plan and assembling your team.
Einar Tangen is a former Milwaukee business executive who now lives in Beijing, China, where he advises the Heilongjiang Province on its technology valuations and acquisitions. Tangen previously served as the chairman of Wisconsin’s International Trade Council and is a former advisor to KOTRA (the Korean Government’s Direct Foreign Investment Recruitment Agency). Readers who would like to submit questions to Tangen about doing business in China can send an e-mail to steve.jagler@biztimes.com.
