You will not find high-level strategic advice, nor a ‘how to’ for any particular course of action if you are planning to commence a business venture in China or with Chinese partners.
This blog provides basic information intended to assist Western businesspeople once they are already in China, offered by a businessperson who spent time working with the Chinese in a range of different environments, from the relatively well-known ground of Beijing and the provincial capital of Nanjing, to the remote northwestern province of Gansu.
The content is divided into three main topics.
Historical Context is concerned with the implications of Chinese national pride for its current social and business environment.
Recent Background deals with the influence of the chaotic decades immediately following the founding of the People’s Republic of China.
Business Situations and Scenarios presents specific examples of what a Western businessperson is most likely to encounter doing business in China. In some cases, there may also be suggestions or additional considerations about how to deal with those situations.
Together, these three sections provide a brief synopsis of the role of China’s pre-revolutionary past and post-revolutionary present in influencing the modern-day social and business climate in China. In each section, the concepts are listed in order of importance/significance.
There is also a fourth section on Social Situations, which may serve as a useful adjunct to information in the Business section.
Good question, this is an ironic reference to the fact that foreigners in China – both businesspeople and tourists – could often expect to be offered a ‘special price’ that was 4 times the real price, or ‘special treatment’ that meant the foreign partner to a business venture was not privy to certain types of critical information and/or fully involved in important business decisions.
They can only really avoid it by having access to someone who understands the possibility this may occur – whether Chinese or, like me, Western – and/or using their common sense. It’s not illegal to provide or even offer ‘special treatment,’ so there’s no real recourse anywhere else. Thanks for asking!!
I was impressed by this interview of a guy who did business in China. He found a partner to work with and things went well but he states that he should have been more thorough in the vetting process. Getting partners to work with that share your values is not only good for business, it’s good for your consience too.
There may be some interesting points in here; however, my own experience (refer to https://business-in-china-blog.com/situations-and-scenarios/law-vs-goodwill/ in my blog) is that common values are not necessary to a fruitful business relationship with Chinese partners. While thorough vetting of a potential business partner is crucial, you are best keeping your sights on what you absolutely need to know about your future relationship, rather than investigating the extent of your common values. Just an opinion!
Chinese Business Etiquette 
What is the “special” treatment to foreigners that you mentioned?
Good question, this is an ironic reference to the fact that foreigners in China – both businesspeople and tourists – could often expect to be offered a ‘special price’ that was 4 times the real price, or ‘special treatment’ that meant the foreign partner to a business venture was not privy to certain types of critical information and/or fully involved in important business decisions.
So, how does one get around that? Or do they?
They can only really avoid it by having access to someone who understands the possibility this may occur – whether Chinese or, like me, Western – and/or using their common sense. It’s not illegal to provide or even offer ‘special treatment,’ so there’s no real recourse anywhere else. Thanks for asking!!
this is a great blog
I had a few ‘aha’ moments while reading this blog. Very insightful. Thanks Laurel
I was impressed by this interview of a guy who did business in China. He found a partner to work with and things went well but he states that he should have been more thorough in the vetting process. Getting partners to work with that share your values is not only good for business, it’s good for your consience too.
There may be some interesting points in here; however, my own experience (refer to https://business-in-china-blog.com/situations-and-scenarios/law-vs-goodwill/ in my blog) is that common values are not necessary to a fruitful business relationship with Chinese partners. While thorough vetting of a potential business partner is crucial, you are best keeping your sights on what you absolutely need to know about your future relationship, rather than investigating the extent of your common values. Just an opinion!