China Update April 7th 2010

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A tale of three cities; Business Negotiation in China

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China Update April 7th 2010

  1. 1. China Updates Webinars bringing you and your business closer to China April 7 th , 2010 Christine Gao Cultural IQ - Fostering Connections, Embracing Diversity
  2. 2. Today’s Agenda <ul><li>A tale of three cities – Beijing, Shanghai, Shenzhen </li></ul><ul><li>Business negotiation in China </li></ul><ul><li>Upcoming events </li></ul><ul><li>Q & A, feedback </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  3. 3. <ul><li>Fast urbanization since 1980s </li></ul><ul><li>According to National Bureau of Statistics Report of Nov.2008, there are 119 cities with a population of over 1 million , 36 cities with a population of over 2 million . </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  4. 4. Shanghai Cultural IQ - Fostering Connections, Embracing Diversity
  5. 5. Shanghai Cultural IQ - Fostering Connections, Embracing Diversity
  6. 6. Shanghai is proud to be home to: <ul><li>Jinmao Tower, </li></ul><ul><li>the fourth tallest building </li></ul><ul><li>in the world </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  7. 7. Shanghai is proud to be home to: <ul><li>World Financial Center </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  8. 8. Shanghai is proud to be home to: <ul><li>10 subway lines, 400 kilometers metro </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  9. 9. Shanghai is proud to be home to: <ul><li>The only Maglev train in use in the world. </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  10. 10. History of Shanghai <ul><li>Since Opium War (1840), Agreements were signed between Qing Dynasty and Western countries to rent costal cities for trade. </li></ul><ul><li>Different from Hong Kong & Macao (colonies), Shanghai still belonged to China. </li></ul><ul><li>However, within rental property and consulate areas, Chinese were not allowed to enter. </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  11. 11. Shanghai architecture <ul><li>Mixture of western and Chinese style </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  12. 12. Cultural IQ - Fostering Connections, Embracing Diversity
  13. 13. Shanghai Today Cultural IQ - Fostering Connections, Embracing Diversity
  14. 14. Luxury goods, lifestyle Cultural IQ - Fostering Connections, Embracing Diversity
  15. 15. Cultural IQ - Fostering Connections, Embracing Diversity
  16. 16. Shanghai Demographic <ul><li>18.9 million population </li></ul><ul><li>Expats from around the world </li></ul><ul><li>Immigrants from different parts of China </li></ul><ul><li>Local Shanghaiese </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  17. 17. Folk culture and Shanghai people <ul><li>practicality, </li></ul><ul><li>petty Bourgeoisie, </li></ul><ul><li>acceptance of western life style, </li></ul><ul><li>a sense of superiority, </li></ul><ul><li>sensitive to perceptions of others, </li></ul><ul><li>delicate life style </li></ul><ul><li>Professional ethics and attitude to life </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  18. 18. Beijing <ul><li>Beijing first became capital of Yuan Dynasty in 1267, 743 years from today. Capital of Ming, Qing and People’s Republic of China ever since. </li></ul><ul><li>A population of 16 million, </li></ul><ul><li>Beijing is still the political, </li></ul><ul><li>cultural and educational </li></ul><ul><li>center of China. </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  19. 19. Political center <ul><li>Host Double Conference every year in March </li></ul><ul><li>Home to government departments, Ministries </li></ul><ul><li>Large sum of public servants </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  20. 20. Cultural Center <ul><li>Architecture and cultural legacy left over by dynasties, generations </li></ul><ul><li>Beijing unique culture – Si He Yuan, Foot of Imperial City </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  21. 21. Beijing is home to <ul><li>Forbidden City </li></ul><ul><li>Summer Palace </li></ul><ul><li>Temple of Heaven </li></ul><ul><li>Great Wall </li></ul><ul><li>(Ba DaLing, Mu TianYu, </li></ul><ul><li>Si MaTai) </li></ul><ul><li>Yuan Ming Yuan </li></ul><ul><li>North Sea, </li></ul><ul><li>Shicha Sea </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  22. 22. Educational Center <ul><li>More than 100 higher educational institutions </li></ul><ul><li>Home to Peking University, Qing Hua University </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  23. 23. Business center <ul><li>Home to numerous headquarters of fortune 500 companies </li></ul><ul><li>Joint venture with Hyundai motor to produce Sonata and other models </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  24. 24. Olympics and infrastructure development <ul><li>9 subway lines </li></ul><ul><li>Beijing Airport Terminal 3, the largest singe structure terminal in the world </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  25. 25. Stadiums, facilities Cultural IQ - Fostering Connections, Embracing Diversity
  26. 26. Beijing Guide <ul><li>Forbidden City </li></ul><ul><li>the center, </li></ul><ul><li>Ring Roads </li></ul><ul><li>surrounding </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  27. 27. Beijing Guide <ul><li>Governments, universities West </li></ul><ul><li>Business, commercial center East </li></ul><ul><li>Olympic Village, Great Wall North </li></ul><ul><li>Under-developed area South </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  28. 28. People and life in Beijing <ul><li>Beijing is an immigrant city, but folk culture is also maintained </li></ul><ul><li>Hu Tong, Si He Yuan, </li></ul><ul><li>Old Beijing, </li></ul><ul><li>Peking duck </li></ul><ul><li>are examples </li></ul><ul><li>of Beijing </li></ul><ul><li>Culture. </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  29. 29. Shenzhen – the Northern city in South China Cultural IQ - Fostering Connections, Embracing Diversity
  30. 30. Shenzhen demographics <ul><li>Census year 2000: </li></ul><ul><li>7.1 million population </li></ul><ul><li>82.7% immigrants </li></ul><ul><li>Average age 31 years old (2006) </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  31. 31. South city, North DNA <ul><li>Love pasta not rice </li></ul><ul><li>Watch CCTV Chinese new year Gala </li></ul><ul><li>Drink rice wine at dinner parties </li></ul><ul><li>Love extravagance </li></ul><ul><li>Love northern dishes </li></ul><ul><li>Speak Mandarin vs. </li></ul><ul><li>Cantonese </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  32. 32. Business negotiation <ul><li>Negotiation not only includes that between Chinese and foreigners, but also between Chinese </li></ul><ul><li>Negotiation cannot be avoided </li></ul><ul><li>Negotiation = bargaining (for Chinese) </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  33. 33. Business negotiation (cont.) <ul><li>Be patient, and learn to enjoy the long process of bargaining </li></ul><ul><li>Be clear about who has the power (you? People on the other side of table?) </li></ul><ul><li>You will have better chances when: </li></ul><ul><li>- they need your product/service </li></ul><ul><li>- price is acceptable </li></ul><ul><li>- they like you or see you as a friend </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  34. 34. Business negotiation (cont.) <ul><li>4) Research on your customer/client: who is decision-maker? What role each on the team plays? </li></ul><ul><li>5) Invest in relationships, make friends and intermediary </li></ul><ul><li>6) Be sensitive to social status </li></ul><ul><li>7) Be prepared to make concessions on price (thrift is a virtue in China) </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  35. 35. Upcoming events <ul><li>Canton Fair (Guangzhou), April 15 th – May 5 th </li></ul><ul><li>World Expo (Shanghai), May 1 st </li></ul>Cultural IQ - Fostering Connections, Embracing Diversity
  36. 36. Thank you! Cultural IQ - Fostering Connections, Embracing Diversity

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