Forums > Study > Learning Chinese Business Practices
Let me say it differently, unless you like gambling or high risk investments, it doesn't matter if you know Chinese business manners and practices, or not.
It is all in the hands of your potential partners.
The potential partner, will display his options and judge you not by the business etiquette but what he or she can use against you, to his advantage.
If you are LUCKY and he is pleased and he personally likes you and you plan, he may cooperate and you have a long and prosperous future, until he doesn't need you anymore and drop you, as you have no real power to win against him in a court. So he can act as he pleases.
Keep him happy!
If you give him a hongbao or not, if you invite an official to a banquette, or not, is not up to your try or effort but how much that person feels, thinks of you, or can benefit from you.
If you are a well planned strategist-business planner, China has too many variables and potential obstacles and risk factors. Even if you have a fantastic product, location is great, distribution network is tip-top, quality is amazing and marketing and sales is top (=an USUALLY fail-safe business plan) the chance to fail is still 50% in China (maybe even higher).
That is why many companies, even the top brands are seriously considering moving away from China,
plus a whole bunch of other major problems.
In terms of business etiquette, I saw loads of owners doing everything right, by Chinese business standards, but they still got axed, or didn't get the bid and that is the more upbeat options, as I said, I have seen my contracts been flushed down the toilet and lawyers telling me, that to win the lawyer battles I don't have the connections or budget.
So as Tiger Tiger stated. Set up a company in the family, get investments from the family as well as any other NEEDS for setting up the business. It's still a high risk by international standards, but much lower, as family is tighter than outsiders.
Usually families have a few rich uncles and aunts trying to evade taxes by investing in start ups and new business ventures.