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Thursday, April 7, 2011

The Rules of Doing Business in China

China Business Golden Rules I

(by Robert Ma)
Everything is possible

Nothing is easy

Western business logic does not apply

It is a fun project if there is no deadline

You must persist – things will come your way eventually

Patience is the essence of success

‘You Don’t Know China ’ means they disagree

‘New Regulation’ means they found a new way to avoid doing something

‘Internal Regulation’ means they are mad at you

‘Basically, No Problem’ means BIG problem

When you are optimistic, think about Rule # 2

When you are discouraged, think about Rule # 1


China Business Golden Rules II

(by Robert Ma)

The only certainty is uncertainty

Rules are made to be changed – as often as possible

Guanxi (relationships) and Guoquin (local situations) are the most often used words in business when disagreement occurs

If it comes down to someone losing face or giving you a lie, expect the lie

If a westerner estimates a delay or difficulty for a project in China , multiply the estimate by three and add 10%

If you want to buy more, expect to pay more

Getting approval or doing business in China is like dealing with a centipede. You need to coordinate with the head and tail and every pair of legs in between

The number of government units that can hurt you always exceeds the number of units that can help you

Western negotiation is generally based on ‘Give & Take’. In China , it is often ‘You give, I take’

Most people in China know Murphy’s Law, they apply it every day

Every project or situation is in a constant state of evolution, making long-term planning impossible

If the situation you encounter does not fit the above rules, please review China Business Golden Rules I