Inter Cultural Management Associates (ICM)
presents :
How to work with the Chinese:
You can run a successful joint venture in China!

By Marc Raynaud and Zhang Hua

The survey conducted by ICM on how Westerners are perceived by the Chinese in some forty joint ventures operating in China shows that there is no real geographical remoteness making expatriation difficult, but that success depends above all on preparation for it on both the psychological and practical level. In fact, French expatriates in China are not most disoriented by their environment and their daily life does not seem to present insurmountable problems.

Every convenience.

In the expatriate compounds like that at the Daya Bay nuclear plant, everything is organised so that Westerners will find themselves in a familiar landscape. Every facility can be found here: a (small) hospital, a school, a supermarket, travel agency and leisure centre. The expatriates themselves organise activities. Some take fright when they learn that the compound is surrounded by wire fencing, but should be reassured by the fact that there is no difficulty about going out. If something cannot be found at Daya Bay, or the compound is beginning to feel like a cage, the item in question or the necessary breathing space will undoubtedly be found in Hong Kong, which is only a five hour round trip by bus. Of course, the bus is often full and it has to stop at the border for an inspection in due form. But if life were too simple, you wouldn't be in China.

Such transport problems have not prevented expatriates from exploring, not just the area around Daya Bay, but also more distant areas and even a few neighbouring countries; which has allowed them, amongst other things, to confirm that Chinese food and art merit their reputation.

One question is inevitable - how do you manage to communicate in China? Obviously, English can be useful for many things, but here, the problem becomes trickier because many Chinese

Then, of course, communication is not particularly easy. But there are ways of communicating without speech. A smile, or a child's tears, for example, seem to be part of a common language.

It is through this sort of observation that one perceives, ultimately, that it would be wrong to assume that linguistic understanding is the only way to communicate.

China would not be China without crowds, which are everywhere, and constant bustle. The country is advancing inexorably. Some complain that this is being done a little too quickly to the detriment of social equilibrium and an environment which remains very beautiful. In any case, in China you have to keep your eyes open today since it may no longer be possible to see the same thing tomorrow.

Not a place for the impatient.

To say that in Asia time is not what is most urgent is a cliché, nonetheless, it is one of the most important features of life here. The Chinese have time to wait. They like to say that water wears away stone and allowance must be made for this outlook in business dealings. Once again, it has been proved that there is no point imposing your point of view, it persuasion which changes positions. It is therefore vitally important to explain objectives, the need for training and the job.

In as much as the trust of the Chines has not been obtained in advance, and the French stress that without it, little is possible, once you have credibility you can go further with the Chinese. This essential trust is built up by establishing relationships which must take Chinese culture into account. Perhaps you have to accept, as one French expatriate says, "losing face" at one moment in order to be able to work profitably with the Chinese. Let us not forget that they have a reputation for being very skilled negotiators.

Five keys to effective negotiation

By Zhang Hua (Inter Cultural Management Associates)

Are the Chinese, as they are proclaimed to be, tactical, expert and fairly hard negotiators? As a Chinese myself, it seems to me essential that the following factors be taken into account when negotiating in China.

1. Agenda.

As hosts, the Chinese take full advantage of their control of the negotiation process. First, they draw up the agenda. This forces the guests to work out their game plan, since their proposals are used as the starting point for all the proposals which follow.

2. Patience.

The Chinese deliberately adopt a fairly passive attitude, taking great care not to show enthusiasm, hiding any impatience, playing their own game, without revealing themselves, to lead their adversaries to put their cards on the table first.

3. Manipulation.

The Chinese do not hesitate to be very manipulative: attributing an exaggerated importance to a point of detail, in fact quite unimportant to them, or challenging points that seemed completely settled, in order to destabilise their adversary and in an attempt to obtain additional concessions in extremis .

4. Time.

"The Chinese use time shrewdly" explains the head of a French company. "If they feel their opposite numbers are in a hurry they may slow down the negotiations and make the deadline a tactical advantage. 'A little impatience ruins a great plan' is a saying of Confucius that we have had all the time in the world to meditate on." Slower in negotiation, they also take giving one's word very seriously. When they have signed an agreement beware anyone on the other side who fails to keep his promises.

5. Friendship.

Where Americans see friendship in terms of a "feeling based on mutual trade off", the Chinese see friendship in terms of loyalty. The idea is that of lasting obligation. However, what the Chinese neglect in terms of reciprocity, they more than make up for in loyalty. They do not just keep their promises but they are also committed to establishing a positive and lasting relationship.

Give preference to direct contact.

To persuade, pass on expertise or offer advice, never lose sight of the fact that education is not based on universal tenets. More than beautiful documents, be they perfectly clear and well written, in China it is undoubtedly much better to make the maximum possible use of direct contact. It is also the moment to remember that a fundamental principle in education is the repetition of information.

You must also be aware that in Asia a yes is not always frank and wholehearted. Making sure the person you are talking to is in agreement with you, that he has understood your message and that he will do what you asked, is never pointless.

In China, as elsewhere, never forget that the simplest way is not always the easiest way. Some technologies long used in France are no less relatively new in China: simplicity of implementation thus seems to mask a complexity which may seem a little excessive to the Chinese.

Finally, in China as in many other countries "parallel hierarchies" often exist and merit special attention, without which there is a risk that many significant factors will remain incomprehensible.

Marc Raynaud

Inter Cultural Management Associates

2, rue de l'Eglise ­ 92200 Neuilly sur Seine

icm@icmassociates.com